Co-operators General Insurance Co. reported consolidated after-tax net income of $8.2 million for the first quarter of 2007, ended March 31, compared to the $31.9 million profit for the same period in 2006.

Gross written premium in the first quarter decreased 1.3% to $423 million, compared to $428 million in the first quarter of 2006. The loss ratio for the quarter was 74.4%, compared to 67.9% during the comparable period last year. The combined ratio of claims and operating expenses was 107.5%, compared to 99.8% for the first quarter of 2006.

Net earned premium growth was 3.3% above the previous year. Investment income and realized gains totalled $45.0 million a decrease of 4.4% from the $47.1 million reported for 2006.

Earnings per common share were $0.34 for the first quarter compared to $1.53 for the same period last year.

“The first quarter of 2007 posed significant challenges,” said Kathy Bardswick, president and CEO of Co-operators. “Automobile claims frequency was up for the first quarter while average premium continues to decline due to the rate decreases taken in most areas of the country over the past two years. In addition, the severity of claims in our other product lines increased significantly during the first quarter. Offsetting some of these market pressures are a strong balance sheet, good investment gains in the equity markets and new underwriting and risk selection initiatives already implemented. The underlying strength of the company continues to be demonstrated in spite of first quarter challenges.”