Ohio Casualty Corporation announced that it expects to report net income per share of $0.31 to $0.35 for the first quarter 2003. This net income per share estimate includes approximately $0.21 per share for after-tax realized capital gains on investments.
Catastrophe losses for the first quarter 2003 are approximately $10.7 million before tax and are expected to negatively impact net income by approximately $0.11 per share. Increased assessments for workers’ compensation residual market pools also negatively impacted the quarter and New Jersey personal auto business continued to negatively impact results.
In addition, premium revenues were lower than expected which adds upward pressure on the underwriting expense ratio of underwriting expenses to premiums written. Net premiums written decreased approximately 6.0 percent compared to the first quarter 2002 due primarily to the withdrawal from the New Jersey personal auto market and other selected personal lines markets. Renewal price increases continue to be at double-digit levels for commercial and specialty lines business.
Losses and loss adjustment expenses for prior accident years for all operating segments combined had a minimal impact on results for the quarter.
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