Co-operators net income takes a hit in 2013
The Co-operators General Insurance Company reported decline in its net income for the last quarter of 2013 and the full year, after facing losses from several severe weather events, including December’s ice storm in Ontario and Quebec.
For the fourth quarter, the Guelph, Ont.-based company reported a consolidated net income of $74.6 million, down from $115.8 million in the last quarter of 2012.
For the full year, net income was $88.9 million, down from $259 million in 2012.
“We continued to experience customer growth in all core lines of business and in all regions in the fourth quarter and our underlying financial strength remains strong,” said Kathy Bardswick, president and CEO of the Co-operators. “This was accomplished despite the challenges of December's ice storm in Ontario and Quebec.”
According to Bardswick, 2013 will be remembered for its devastating natural disasters.
“After consideration of reinsurance, our losses related to the heavy rains and flooding in southern Alberta and the Greater Toronto area totalled $126.6 million,” she said. “We are very proud of our employees' and advisors' hard work and professionalism as they helped clients through the recovery process.”
Fourth quarter direct written premiums increased to $542.6 million, compared to $518.7 million in the last quarter of 2012. The company attributed that growth to its auto and home lines of business in both the Ontario and Western regions.
Direct written premiums for the year totaled roughly $2.2 billion, up from $2.1 billion in 2012. Net earned premium for 2013 was $2.07 billion, up from $2.07 billion the previous year.
Better funding needed for rail safety: working group
It is not at all clear that Transport Canada has the resources to approve, inspect and maintain current emergency response plans, let alone enough funding for a recommended expansion of the program, says a government-commissioned rail safety report.
A working group made up of first responders, shippers of hazardous goods, oil and gas companies and municipal leaders says “there is an urgent need to identify and implement an effective response to the dangers presented by large spills of flammable liquids such as the highly volatile Bakken crude oil, ethanol and other products.” (continued.)
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All those goods are rumbling through Canadian towns and cities without anyone having much idea of what, where and how it is being transported, said the panel.
The study is one of three that were commissioned by Transport Minister Lisa Raitt in the wake of last summer's deadly derailment, fire and explosions in Lac-Megantic, Que., which claimed 47 lives.
Net income up, property combined down at Swiss Re
Swiss Re Ltd. released its financial results for 2013 last week, recording a 2.4-point improvement in the property combined ratio from 2012, a 15 per cent increase in total premiums and a 51 per cent increase in fourth-quarter net income.
In property and casualty, Swiss Re recorded premiums earned of $14.5 billion in 2013, up 18 per cent from $12.3 billion in 2012. All figures are in United States dollars.
The 18 per cent increase was “mainly driven by the expiry of the quota share retrocession agreement and new business written in the Americas,” Swiss Re stated.
Claims and adjustment expenses in P&C were up 25 per cent, from $6.3 billion in 2012 to $7.88 billion last year.
The claims ratio increased three points year over year, from 51.2 per cent in 2012 to 54.2 per cent in 2013.
Swiss Re’s underwriting result in P&C was $2.424 billion in 2013, up 2 per cent from $2.38 billion in 2012. Its combined ratio increased 2.6 points, from 80.7 per cent in 2012 to 83.3 per cent in 2013.
For the fourth quarter, the combined ratio was 88.6 per cent in 2013, down from 90.5 per cent in the same period in 2012.
Mobile technology big focus for connected cars
The president of GM North America says high-speed wireless technology will be a big focus for the carmaker this year, as it moves to integrate 4G LTE technology across its 2015 vehicle range.
The vehicle line, which will be on sale by July and August, will have all the capabilities of customers' smartphones, said GM North America president Alan Batey.
“We're really, really excited about this and we think that this is going to be a huge product innovation across our brands here in Canada,” said Batey. “We think it's a really big step. We really wanted to be a leader here. We do believe we have a window where we can really own this space on a broad based basis.”
The first GM cars, trucks and crossovers to get 4G LTE will be most 2015 Chevrolet, Buick, GMC and Cadillac models available in 2014 in the United States and Canada. The service will be delivered through AT&T and its Canadian partners.
The company is also looking at including in-vehicle Wi-Fi hot spots, so that multiple devices can be connected at once.
