This week General Casualty Insurance Companies reported its year-end 2003 financial results, showing a significant improvement over the previous year and the insurance industry average.
General Casualty’s net income improved to $60.2 million in 2003, compared to a loss of $41.8 million in 2002 that was affected by a revaluation of our stock portfolio. In addition, the company reported a statutory combined ratio of 101.3, better than its 102.6 in 2002 and the industry average of 103.1, as projected by Conning Research and Consulting, Inc.
Underwriting results were hampered by storm activity in the Midwest and an increase in large losses. However, new commercial business growth was strong and personal lines (home and auto) improved substantially.
“In addition to posting solid results, we increased our market position in several key areas and substantially grew our commercial lines business due to our new online rating applications,” said Pete McPartland, who became president and CEO of General Casualty in 2003.
Last year General Casualty substantially increased its policyholders’ surplus, which rose to $472.8 million or 36 percent above 2002. Direct written premiums totaled $1.023 billion, the first time the company has surpassed the $1 billion mark.
In addition, in 2003 General Casualty consolidated certain administrative functions with Winterthur North America and merged operations with its sister company Southern Guaranty, based in Montgomery, Ala.
“2003 was a transitional year for General Casualty, which will pave the way for our success in future years. We are now a billion-dollar company with operations in three diverse areas of the country,” McPartland said. “However, our business model and what we stand for – as a regional company that markets its products exclusively through independent community agents – remains unchanged. As we head into 2004, I could not be happier with how we are positioned.”
For more information please contact Anne M. Smith.