GUELPH - Co-operators General Insurance Company ("Co-operators General") announced its consolidated financial results for the three months ended June 30, 2009. For the second quarter, Co-operators General reported consolidated net income of $13.9 million, compared to $39.0 million for the same quarter in 2008. Earnings per common share were $0.54 for the second quarter compared to $1.80 for the same period last year. On a year-to-date basis, net income was $7.5 million (2008 - $44.9 million) and earnings per common share were $0.16 (2008 - $2.03)

"Our successful $115.0 million preferred share offering in the quarter, in combination with improved equity markets, helped to strengthen our capital position," said Kathy Bardswick, President and CEO of The Co-operators. "The company experienced positive premium growth, and the underlying loss ratios improved during the second quarter."

Co-operators General's Second Quarter Financial Highlights ($ in millions, except for earnings per share)

------------------------------------------------------------------------- 2nd quarter 2nd quarter YTD YTD 2009 2008 2009 2008 -------------------------------------------------------------------------

Gross written premium $ 625.5 $ 614.9 $ 1091.5 $ 1055.2 Net earned premium $ 502.1 $ 492.3 $ 994.7 $ 976.5 Net investment income and net investment gains(1) $ 39.4 $ 66.0 $ 80.2 $ 117.7 Net income(1) $ 13.9 $ 39.0 $ 7.5 $ 44.9 Earnings per common share(1) $ 0.54 $ 1.80 $ 0.16 $ 2.03 Return on equity (annualized)(1) 4.9% 13.7% 1.3% 7.9%

Gross written premium growth 1.7% 2.7% 3.4% 3.3% Loss ratio 72.1% 70.0% 74.3% 73.4% Expense ratio 31.9% 32.6% 33.0% 32.5% Combined ratio 104.0% 102.6% 107.3% 105.9% Minimum Capital Test 223% 231% 223% 231% ------------------------------------------------------------------------- (1) Restated for the three and six months ended June 30, 2008

Second Quarter Review

Gross written premium in the second quarter increased 1.7% to $625.5 million, compared to $614.9 million in the second quarter of 2008. Growth was achieved in all product lines with Western Canada leading the regional growth, making up $5.4 million of the $10.6 million increase. Net earned premium growth for the quarter was 2.0% over the previous year. Growth was seen in the Western, Atlantic and Ontario regions, while the Quebec region remained consistent with the prior year.

Second quarter net investment income from interest, dividends and real estate rose to $36.1 million in 2009, up from $34.2 million in 2008. Net investment gains of $3.3 million were achieved in the quarter, down from $31.8 million in the same period in 2008 where we had taken advantage of market opportunities that existed at the time and recorded gains on sale of a portion of our real estate portfolio. During the quarter we recognized other than temporary impairment losses of $5.4 million (2008 - $nil) related to foreign equity investments. The credit quality of our portfolio remains high with 95.5% of our bonds rated A or higher. Our equity portfolio is 83.6% weighted to Canadian stocks.

The combined ratio of claims and operating expenses for the quarter was 104.0%, compared to 102.6% for the second quarter of 2008. Our loss ratio for the second quarter of 2009 increased to 72.1% from 70.0% in the second quarter of 2008; however, removing the impact of claims discounting produces an adjusted loss ratio of 72.0% in the second quarter versus 74.0% in 2008. The second quarter loss ratio has increased on auto, particularly in the Greater Toronto Area (GTA) for accident benefit claims. Home results in the quarter showed an improvement over 2008 despite increased severity relating to large loss fires. Our Quebec region experienced a 21.5 percentage point improvement in the loss ratio versus the same quarter last year as milder weather conditions favourably impacted frequency and severity of claims.

Capital
Despite overall market impact on our investment portfolio, Co-operators General's capital position remains strong, as the Minimum Capital Test was 223% at June 30, 2009, well above the regulatory minimum requirement of 150%. During the quarter, Co-operators General issued 4,600,000 Class E, Series D preference shares for gross proceeds of $115.0 million.

With assets of approximately $4.9 billion, Co-operators General is a leading Canadian-owned multi-product insurance company. Co-operators General Insurance Company is part of The Co-operators Group, a national group of companies owned by 46 Canadian co-operatives, credit union centrals and like-minded organizations. Co-operators General preference shares are listed on the Toronto Stock Exchange under the trading symbols CCS.PR.C. and CCS.PR.D. Further information can be found at www.cooperators.ca