General Casualty Insurance Companies recently reported outstanding first quarter financial results, which represent a strong showing compared to current U.S. insurance industry projections* and further build on the company’s solid 2004 performance.
General Casualty reported a first quarter statutory combined ratio of 91.7 percent.** First quarter revenues were steady at $304.6 million in direct premiums written.
“General Casualty had a great start to 2005, not only achieving financial success but also making significant strides in a number of areas that pave the way for a successful future,” said Pete McPartland, president and CEO. “We achieved strong results across all major lines of business, and our business units have further enhanced our ability to deliver efficient, high-quality service to our agents and policyholders.”
The company has continued to introduce new products and services for agents and customers in its newest region in the South, which was formerly sister company Southern Guaranty. It has nearly completed product and system conversion in its Eastern Region, a process begun three years ago with the acquisition of Blue Ridge Insurance Company, and is actively growing its business in key areas of Connecticut, Pennsylvania and New York. General Casualty also recently made changes in its personal lines operations which will enable the company to service policies and expand its personal lines book more efficiently.
These positive results build on the company’s successful 2004 year-end results, when General Casualty reported a statutory combined ratio of 98.4 percent and total direct written premiums of $1.19 billion.
Winterthur U.S. Holdings, Inc., also based in Sun Prairie and parent company for General Casualty and Unigard Insurance Companies (Bellevue, Wash.), also recorded stellar first quarter results. The group reported pre-tax net income of $60 million for first quarter 2005. In 2004 WUSH reported pre-tax net income of $133.7 million and a policyholders’ surplus balance of $811.7.
* Conning and Research Consulting, Inc., in a forecast published earlier this year, projected a 2005 combined ratio for the industry of 99.0.
**The combined ratio (calculated according to statutory accounting principles) is a key industry measure of underwriting profitability, excluding investment income, which is calculated by comparing incurred losses to earned premium and expenses to written premium. The lower the combined ratio is, the more profitable the company. A combined ratio of 100 means that for every premium dollar, the company paid out an equal amount (one dollar) in claims and expenses.
For more information please contact Anne M. Smith.