Co-operators General Insurance Company Reports Third Quarter 2013 Results

Co-operators General Insurance Company Reports Third Quarter 2013 Results 
This quarterly earnings news release should be read in conjunction with our 
Third Quarter 2013 consolidated financial statements and Management's 
Discussion and Analysis (MD&A) as well as our 2012 Annual Report which are 
available on SEDAR at www.sedar.com. Unless otherwise noted, all amounts are 
expressed in Canadian dollars. 
GUELPH, ON, Oct. 24, 2013 /CNW/ - Co-operators General Insurance Company 
(Co-operators General) today released consolidated financial results for the 
three months ended September 30, 2013. The consolidated net loss was $37.9 
million compared to net income of $12.6 million for the same quarter in 2012. 
This resulted in earnings (loss) per common share of ($2.02) for the quarter 
compared to $0.46 in the same period last year. 
For the first nine months of the year, net income is $14.3 million, which is a 
decrease of $129.2 million from the same period last year, resulting in 
earnings per common share of $0.11. 
"The heavy rains and flooding in the Greater Toronto Area, which were the most 
costly natural disaster in Ontario's history, had a very significant impact on 
our financial results this quarter. The estimated net losses from July's 
catastrophic event were $47.9 million," said Kathy Bardswick, President and 
CEO of The Co-operators. "Despite the recent weather-related challenges we've 
faced, the organization's financial strength is solid. Our capital position 
remains strong, and we were pleased with the growth we achieved in the auto, 
home and commercial lines of business across the country." 
Co-operators General's Third Quarter Financial Highlights 
($ in
millions,
except for
earnings per
share and
ratios)                                                                


                                                                      
               3rd quarter   3rd quarter        2013           2012
                   2013         2012             YTD           YTD

Key financial
data                                                                  

Direct written                           
premium (DWP)         594.3         561.4       1,654.1        1,587.9

Net earned                               
premium (NEP)         528.8         511.9       1,534.7        1,498.7

Net income                                             
(loss)               (37.9)          12.6          14.3          143.5

Total assets                             
(1)                 5,103.5       4,910.3       5,103.5        4,910.3

Shareholders'                            
equity(1)           1,395.2       1,418.4       1,395.2        1,418.4
                                                                      

Key success
indicators                                                            

DWP growth             5.9%          2.7%          4.2%           2.8%

NEP growth             3.3%          3.4%          2.4%           4.8%

Earnings
(loss) per
share               ($2.02)         $0.46         $0.11          $6.48

Annualized
return on
average equity      (11.5%)          3.4%          1.5%          18.1%

Combined ratio
- excluding
MYA                  114.3%        105.7%        107.7%          95.5%

Minimum
Capital Test
(MCT)(1)               234%          260%          234%           260%

(1)Balance sheet data and MCT results for 2012 are as at December 31



Third quarter review

DWP improvements are attributable to policy count growth in the auto, home and 
commercial lines of business as well as home portfolio rate and inflation 
adjustments. DWP in the third quarter has increased by 5.9% or $32.9 million 
to $594.3 million. NEP increased during the third quarter by 3.3% or $16.9 
million compared to the same period last year. The increase in NEP is seen in 
all geographical regions.

The combined ratio, excluding the market yield adjustment (MYA) for the 
quarter, was 114.3% compared to 105.7% for the same period last year. 
Undiscounted net claims and adjustment expenses have increased by 14.0% from 
the third quarter 2012, bringing the loss ratio to 81.1%, excluding MYA. 
Results were negatively impacted by the heavy rains and flooding in Toronto, 
where before-tax losses net of reinsurance were $47.9 million, inclusive of 
reinsurance premiums to purchase coverage for another event in the impacted 
layer. The expense ratio increased 1.0 percentage point to 33.2%, compared to 
32.2% for the same period in 2012 mainly as a result of one-time costs related 
to information technology initiatives.

Net investment income and gains decreased by $30.5 million versus the third 
quarter of 2012. This is attributable to realized and unrealized losses, 
mainly the result of increasing interest rates which decreased the value of 
our portfolio holdings.

Our investment portfolio composition is conservative and is comprised of high 
quality and well diversified assets. The credit quality of our portfolio 
remains high with 99.7% of our bonds considered investment grade and 89.1% 
rated A or higher. Our equity portfolio is 80.6% weighted to Canadian stocks.

Capital

The Company's capital position remains strong, as the Minimum Capital Test 
(MCT) for Co-operators General Insurance Company was 234% at September 30, 
2013, well above the regulatory minimum requirement of 150%.

FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements and forward-looking 
information, including statements regarding the operations, objectives, 
strategies, financial situation and performance of Co-operators General 
Insurance Company. These statements generally can be identified by the use of 
forward-looking words such as "may", "will", "expect", "intend", "estimate", 
"anticipate", "believe", "plan", "would", "should", "could", "trend", 
"predict", "likely", "potential" or "continue" or the negative thereof and 
similar variations. These statements are not guarantees of future performance 
and involve known and unknown risk, uncertainties and other factors that may 
cause actual results or events to differ materially from those anticipated in 
the forward-looking statements or information. Although we believe that the 
expectations reflected in the forward-looking statements and information are 
reasonable, there can be no assurance that such expectations will prove to be 
correct. Consequently, we make no representation that actual results 
achieved will be the same in whole or in part as those set out in the 
forward-looking statements and information. For further information, refer to 
our Third Quarter 2013 MD&A or our 2012 Annual Report.

SHAREHOLDER AND INVESTOR INFORMATION

About Co-operators General Insurance Company

With assets of more than $5.1 billion, Co-operators General is a leading 
Canadian-owned multi-product insurance company. Co-operators General is part 
of The Co-operators Group Limited, a Canadian-owned co-operative. Through its 
group of companies it offers home, auto, life, group, travel, commercial and 
farm insurance, as well as investment products. The Co-operators is well known 
for its community involvement and its commitment to sustainability, and is 
listed among the 50 Best Employers in Canada.

Co-operators General Class E, Series C Preference Shares trade under ticker 
symbol CCS.PR.C and the Class E Series D Preference Shares trade under ticker 
symbol CCS.PR.D. Both series of shares trade on the Toronto Stock Exchange 
(TSX). Further information can be found at www.cooperators.ca.



SOURCE  The Co-operators 
 P. Bruce West Executive Vice-President, Finance and Chief Financial Officer 
Telephone: (519) 767-3036 
To view this news release in HTML formatting, please use the following URL: 
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CO: The Co-operators
ST: Ontario
NI: INS ERN  
-0- Oct/24/2013 20:30 GMT