Harleysville Group Notes 1stQ Results

Pennsylvania-based Harleysville Group Inc. announced that it expects 2003 first quarter diluted operating earnings to be in the range of $0.22 to $0.26 per share.

For the comparable period in 2002, the company reported diluted operating earnings of $0.43 per share. Diluted operating earnings per share exclude the impact of net realized after-tax investment gains and losses that are included in net income.

Property catastrophe losses resulting from the first quarter’s winter storms were capped at $3.6 million pretax, or $0.08 per share, by the quarterly aggregate reinsurance agreement with Harleysville Mutual Insurance Co.

During the quarter, Harleysville Group also experienced higher non-catstrophe losses in other lines, particularly workers’ compensation where previously identified adverse trends continued.

The company is reportedly conducting a thorough analysis of its workers’ comp reserves, which may or may not result in further reserve adjustments.