Ohio Casualty Corporation expects to report that reserve strengthening related to losses and loss adjustment expenses for accident years prior to 2002 will be approximately $10 million dollars before tax for the fourth quarter of 2002.
It also expects to report that catastrophe losses for the fourth quarter 2002 will be approximately $3.5 million before tax. The Corporation expects to report that statutory surplus as of Dec. 31, 2002 will be in the range of $715 million and $735 million, well in excess of any covenant amounts related to the Corporation’s revolving credit facility, which had an outstanding balance of zero as of Dec. 31, 2002. It expects to report that year 2002 renewal price increases for the commercial lines operating segment will be approximately 16 percent and that commercial umbrella renewal price increases for the year 2002 will be over 30 percent.
The Corporation also reports it has recently received all necessary approvals to withdraw its personal lines business from the states of Florida, Georgia, and Texas, and the Corporation has renewed its reinsurance program for the year 2003.
The Corporation expects to report complete results for the fourth quarter and the year 2002 on Feb. 5.
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