Harleysville Reports Quarterly Loss
NU Online News Service, April 28, 9:53 a.m. EDT?Harleysville Group reported a first-quarter loss of $3.24 million, or 11 cents per share, driven down by a $20 million pre-tax reserve adjustment for workers' compensation, winter storm property catastrophe losses and poor personal lines results.
The Harleysville, Pa.-based insurer was profitable during the comparable period last year, with a net income of $13.34 million, or 44 cents on a per-share basis.
On the plus side, the company reported continuing premium growth in its core commercial business segment. Its first-quarter net written premiums rose 13 percent to $215.3 million from $190.7 million one year ago. The overall first-quarter revenue also rose, to $224.36 million from $208.21 million in 2002 first quarter.
Commenting last Friday on the workers' comp reserve increase, Walter R. Bateman, chairman and chief executive officer at the Harleysville Group, said: "We are disappointed in our results this quarter, but we have taken the quick action necessary to address workers' compensation reserve adequacy.
"Our decisive response to the adverse activity we saw late in the quarter underscores our commitment to maintaining reserve adequacy."
Mr. Bateman added that overall, the company's disciplined small commercial strategy continues to deliver double-digit premium growth and that the company's balance sheet remains strong.
With its subsidiaries, Harleysville Group offers a broad line of personal and commercial property-casualty insurance. The company, through 14,500 agents working in some 1,900 agencies, offers coverage in homeowners, auto, commercial multi-peril and workers' compensation in more than 30 states.
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