Co-operators reports Q2 profit of $32.4 million (August 01, 2005)

Co-operators General Insur-ance (TSX: CCS.PR.A) Company’s financial results for the second quarter represent a consolidated after-tax net income of $32.4 million, compared to $38.0 million income for the same period in 2004.

Gross written premium in the second quarter increased 0.9% to $578 million, compared to $573 million in the second quarter of 2004. The claims ratio for the quarter was 65.5%, compared to 63.7% during the comparable period last year. The combined ratio of claims and operating expenses was 97.9%, compared to 92.8% for the second quarter of 2004.

Investment income at $39.9 million increased by $12.6 million from the $27.3 million reported for the second quarter of 2004.

Earnings per common share were $1.47 for the second quarter compared to $1.74 for the same period last year.

According to Kathy Bardswick, CEO of The Co-operators, results remained strong despite early summer storm activity and nationwide rate decreases on the Company’s auto product. Bardswick notes that results are stable as a result of government reforms, which enables a reasonable profit level.