Co-operators General Insurance swung to a loss during the first quarter as the southwestern Ontario-based insurer was hit by the downturn in financial markets and higher claims costs.

The insurer's net loss for the quarter ended March 31 was $6.4 million or 38 cents a share. That reversed a net profit of $5.9 million or 23 cents a share generated in the same year-earlier period.

The company said that net premium income rose 1.7 per cent, with growth mostly coming from Western Canada and Ontario partially offsetting declines in Quebec. The province has seen fewer policies written in the last two years as a result of the consolidation in the insurance brokerage industry.

Net earned premiums for the quarter rose to $492.6 million from $484.2 million.

Co-operators, with assets of about $4.6 billion, is part of The Co-operators Group, a national group of companies owned by 46 Canadian co-operatives and credit unions.

The company's common shares aren't listed publicly but a class of preferred shares are traded on the Toronto Stock Exchange.