Co-operators Life Insurance Company is reporting that the strong financial contribution from all lines of business led the company to achieve its most successful year in its 56-year history.

Pre-tax income reached $53 million, up from $43 million in 2000, while after tax income reached $33 million, up from $28 million in 2000. Return on equity of 13.5% also demonstrated improvement over the 2000 level of 12.8%.

While there were many highlights during the year, Karen Rust, vice president of finance singled out the turnaround in the group insurance line as the primary contributor to the increase in earnings. “Encouraging progress was made in 2001 in bringing the group insurance operation toward an acceptable level of profitability. New sales were closely managed and renewal premium rate actions taken, which combined with our industry-leading claims management practices to bring about the improvement.” Rust also added, “We were also pleased to see the individual life and credit union member insurance programs continue their tradition of solid financial performance.”

Net premium revenue for Co-operators Life, including self-funded premium equivalents, increased 8% in 2001 to reached $488 million, while assets under administration exceeded $2.4 billion. Investment income was impacted by market and interest rate declines as well as by strengthened provisions for future potential loan losses, coming in at $101 million which was $4 million lower than the previous year.

New sales of both individual life and group insurance products met expectations thanks to The Co-operators core distribution systems and new direct-response programs developed throughout the year.