Ohio Casualty Corporation announced that second quarter earnings will be impacted by net catastrophe losses estimated at $12 million before tax which were incurred during the period April 1 though May 11, 2003.
Approximately $9 million of the estimated catastrophe losses are related to severe weather in 17 states from May 2-11. The impact of the estimated $12 million in catastrophe losses is expected to be approximately 3.5 points on the full second quarter 2003 combined ratio. Catastrophe losses of $10.3 million impacted the second quarter 2002 combined ratio by 2.8 points and the 1995-2001 second quarter historical average was 5.4 points.
The corporation reportedly does not typically announce catastrophe estimates prior to reporting complete results for the quarter. However, disclosure is being made at this time due to the high level of publicity surrounding the recent storms and due to the corporation’s relatively high concentration of business in several of the states impacted.
President and Chief Executive Officer Dan Carmichael, noted, “We have teams of additional claims professionals in place in several areas that suffered significant storm damage as we continue to deliver excellence in claims service to our policyholders.”
Was this article valuable?
Here are more articles you may enjoy.