GUELPH, Ont. — Persistently higher auto accident claims in the Toronto area and storms in both the East and West of Canada contributed to an $11.5-million loss for Co-operators General Insurance Co. in the third quarter.
The Guelph, Ont.-based firm reported a loss per share of 74 cents for the quarter compared to a loss of $16.1 million or $1.01 in the same period of 2009.
The insurance company said much of the loss was attributable to due a deterioration in the auto loss ratio in Toronto and storm losses in Alberta and Newfoundland. Also affecting its profitability was a market yield adjustment that increased claims expense by $6.1 million caused by lower yields on the Company’s bond and mortgage portfolios.
“We continued to face a very challenging auto insurance market in the Greater Toronto Area during the third quarter,” president and CEO Kathy Bardswick said in a release.
“In addition, our results were impacted by severe storms, particularly hail storms in Western Canada and hurricane Igor in Newfoundland and Labrador. We are well positioned for the future, as our capital position remains very strong and the benefits of recent expansion of our agency force in British Columbia and Quebec are being realized.”