Co-operators General Insurance Co. swung to a loss for the third quarter as severe summer weather boosted claims, the company said Monday.

For the third quarter ended September 30, the property and casualty insurer reported a consolidated net loss of $16.1 million, or $1.01 a share, compared to net income of $22.2 million, or $1.05, for the same quarter in 2008.

“Our results were impacted by a large number of severe summer storms throughout the country, which contributed to additional claims and adjustment expenses in the third quarter compared to last year. The industry also continues to experience increasing costs related to accident benefit auto claims in Ontario,” explains Kathy Bardswick, president and CEO of The Co-operators.

“We are pleased to be sustaining growth in net earned premium across all our core product lines in every region of the country during the economic downturn. Our capital levels remain strong, and our solid financial footing positions the company well for the future,” Bardswick says.

Gross written premium in the third quarter increased 2.1% to $601.9 million compared to $589.3 million in the third quarter of 2008. Retention remained strong while growth primarily resulted from rate and inflation increases. Growth was achieved in all core product lines and was driven by increases in the Ontario region, the P&C insurer says.

Net earned premium growth for the quarter was 3.3% over the previous year. Growth was experienced across all product lines and regions.

Third quarter net investment income from interest, dividends and real estate rose to $36.5 million in 2009, up from $36.1 million in 2008.

The company’s combined ratio of claims and operating expenses for the quarter was 113.2%, compared to 103.5% for the third quarter of 2008. The loss ratio for the third quarter of 2009 increased to 82.3% from 71.3% in the third quarter of 2008.

The third quarter loss ratio increased on all product lines, the insurer says, as auto results continued to deteriorate in the Ontario region, particularly on accident benefit claims, but showed improvement in western Canada.

Co-operators General says its capital position remains strong, as the Minimum Capital Test was 223% at September 30, 2009, well above the regulatory minimum requirement of 150%.

IE