Majority of insurers report improved COR in 2010: MSA Research

*** Correction: Please note that this item has been amended from its original post on March 16. The Dominion’s combined operating ratio was incorrectly reported as 97.7% for 2010. The correct COR is 102.1%. Apologies for the error.

Of the 221 insurers that reported 2010 year-end data to MSA Research, slightly more than half (53%) posted an improvement in their respective combined operating ratio.For the entire group of companies, the composite COR for 2010 hovered just under 100% at 99.7%. Net income increased for 125 of the 221 companies, while it decreased for 83. Overall, the group of insurers’ collective net income for the year was $3.5 billion. Ontario auto continues to plague insurers’ results. The industry’s direct Ontario loss ratio for the year was 99.4% (89.0% without State Farm Mutual Auto). “State Farm Mutual Auto, which focuses on Ontario auto, showed the worst results of any P&C insurer in Canada in history with an underwriting loss of $1.3 billion and a net loss for the year of $1.06 billion,” Joel Baker, MSA’s president and CEO, said in a statement. “The branch had an infusion of capital from head office of $1.16 billion at year-end bringing its BAAT ratio back to 203%.”The complete summary of results can be accessed at www.msaresearch.com. A sampling of the 2010-year end results of the individual companies that reported more than $1 billion in net written premiums include (in alphabetical order):• Aviva Insurance Company of CanadaNet Premium Written: $1.6 billionUnderwriting Income: $12.5 million lossNet Income: $67.4 millionCombined Ratio: 100.8%

• Co-operators General Insurance Net Premium Written: $1.4 billionUnderwriting Income: $77.1 million lossNet Income: $80.4 millionCombined Ratio: 105.4%

• The Dominion of CanadaNet Premium Written: $1.2 billionUnderwriting Income: $10.2 million lossNet Income: $67.5 millionCombined Ratio: 102.1%

• Economical Mutual Net Premium Written: $1.3 billionUnderwriting Income: $43.3 million lossNet Income: $64.4 millionCombined Ratio: 103.3%

• Intact Insurance CompanyNet Premium Written: $3.5 billionUnderwriting Income: $103 millionNet Income: $247.1 millionCombined Ratio: 96.3%

• State Farm Mutual AutoNet Premium Written: $1.4 billionUnderwriting Income: $1.3 billion lossNet Income: $1.1 billion lossCombined Ratio: 192.1%

• Security National Insurance Company (TD Insurance) Net Premium Written: $1.4 billionUnderwriting Income: $26.7 million lossNet Income: $55 millionCombined Ratio: 102.1%