Co-operators General Insurance Company has reported consolidated net income of $60.8 million for the fourth quarter ended December 31, 2007, compared to $18.5 million for the corresponding quarter in 2006.
The improvement in the consolidated net income was due to favorable automobile claims development, higher investment returns and tax recoveries. Earnings per common share was $2.88 for the fourth quarter compared to $0.78 for the same period in 2006.
Net earned premium growth for the quarter was 2.4% above the previous year. The increase was due to growth in home and auto policies in western Canada.
The loss ratio for the quarter was 61.7%, down from 68.3% during the comparable period in 2006, due to favorable claims development especially in the automobile line of business. The combined ratio of claims and operating expenses for the quarter was 93.6%, compared to 99% for the same quarter of 2006, due to the lower loss ratio.
Net income for FY 2007 amounted to $148.2 million, an increase when compared to $118.1 million FY 2006.
Kathy Bardswick, president and CEO of Co-operators General Insurance, said: We are very pleased with our fourth quarter results, which included both strong underwriting and investment returns. Our claims development this quarter was exceptionally favorable, contributing to a combined ratio better than our target range, which further enhanced our strong capital position.