Net income for The Co-operators group of companies of $82.4 million for 2008, a decrease of 48% from $158.7 million the previous year, The Co-operators said Thursday.

During its Annual General Meeting, which wrapped up Thursday in Moncton, the organization also announced a contribution of $617,000 to The Co-operators Foundation, through which it supports worthy causes throughout Canada.

Despite the challenging environment in 2008, The Co-operators maintained its financial strength, expanded its membership base and made significant contributions to Canadian communities. It also made a significant acquisition in 2008, with the purchase of a 71.4% stake in Montreal-based Addenda Capital Inc., an institutional asset manager with $35.6 billion under management.

Return on shareholders’ equity for the group of companies was 6.2% for 2008, down from 13.2% the year previous. In addition to the challenging environment overall, rising average claims costs in the property and casualty businesses contributed to the decline in ROE.

“In 2008, our resiliency was put to the test. While our bottom line reflected a widespread downturn in the economy, our fundamentals remained strong, enabling us to make real progress toward our strategic objectives,” said Kathy Bardswick, president and CEO of The Co-operators.

Despite unfavourable market conditions and the deployment of excess capital for the acquisition of Addenda Capital, the organization’s capital ratios remain well above the regulatory minimums of 150%. The Minimum Capital Test for The Co-operators property and casualty insurance companies was 204%, while Co-operators Life Insurance Co.’s Minimum Continuing Capital and Surplus Requirement was 256%.

After the $617,000 contribution announced Thursday, The Co-operators Foundation has a balance of more than $6 million. The foundation is used to provide financial assistance to social economy enterprises and other worthy causes across Canada.

In 2008, more than $5 million was reinvested into Canadian communities through staff and agent contributions, community partnerships, corporate giving and volunteerism.

The Co-operators Annual Reports and Sustainability Report were also released during the AGM. They are available at www.cooperators.ca.

IE