Co-operators General Insurance Co. today announced an improved profit for the three months ended September 30, due to stronger underwriting performance.

For the third quarter, the company reported consolidated net income of $30.3 million, compared to $18 million for the same quarter in 2006. Earnings per common share were $1.44 for the third quarter compared to 83¢ for the same period last year.

“We are pleased with our results this quarter, which have improved significantly over the same period last year, reflecting continued positive auto claims development from prior accident years,” stated Kathy Bardswick, president and CEO of The Co-operators, in a release. “Our combined ratio at 99.9%, continues to improve toward our target range of 95 – 99% and our capital position remains very strong with a Minimum Capital Test ratio of 243%.”

Gross written premium in the third quarter increased 4.1% to $571.9 million, compared to $549.3 million in the third quarter of 2006 primarily due to growth in the auto and home lines of business in western Canada.

Net earned premium growth for the quarter was 3.2% above the previous year due to new home and auto policies in western Canada, partially offset by continued soft pricing in commercial markets and rate reductions in certain auto markets. Third quarter net investment income and realized gains totalled $38.9 million, a decrease of 31.4% from the $56.7 million reported for 2006. The decline in investment income was due to lower investment gains realized in 2007.

The loss ratio for the quarter was 68.4%, down from 75.7% during the comparable period last year. The combined ratio of claims and operating expenses was 99.9%, compared to 106.5% for the third quarter of 2006 due to improved prior accident year claims development and the release of related reserves partially offset by storm losses in western Canada..

The company’s capital position remains very strong, as the Minimum Capital Test for Co-operators General Insurance Company was 243% at September 30, 2007, well above the regulatory minimum requirement of 150%.

Co-operators General has no exposure to non-bank asset backed commercial paper, it says.