(November 20 – 17:20 ET) – Co-operators General Insurance Co. is reporting a loss for the third quarter ended September 30. The company recorded a consolidated net loss of $3.3 million compared to a loss of $5.8 million sustained during the same period in 1999.

Gross written premiums rose 11.3% in the third quarter to $401 million compared to the third quarter of 1999. The claims ratio for the third quarter was 85.0% compared to 85.2% during the same period a year ago.

The combined ratio of claims and operating expenses was 115.1%, compared to 115.5% for the third quarter of 1999. Investment income of $39.1 million was up from the $35.3 million recorded during the same quarter in 1999.

On a year-to-date basis, gross written premium of $1.13 billion showed a 10.8% increase over last year as the company shifts automobile policies from six to twelve month terms.

Earned premium growth was 2.4% above the previous year. Net income was $14.4 million, compared to $23.1 million for the nine months ended September 30, 1999. Investment income at $115.5 million showed an increase over the $107.5 million for the comparable nine-month period in 1999.

The loss per common share was 24¢ for the quarter, compared to the loss of 36¢ a share for the same period last year. Year-to-date earnings per common share were 42¢ compared to 87¢ for the nine-month period ended September 30, 1999.

“There is no doubt that for The Co-operators and the industry in general, we are at the bottom of the insurance cycle, with inadequate pricing and increasing claims costs,” said Terry Squire, president and CEO of The Co-operators. “We believe we’ve turned the corner and that balance is being restored in both pricing and claims. The Co-operators is taking the necessary steps to improve profitability.”
-IE Staff