Ohio Casualty Corporation reported its net income rose 59 percent in the second quarter compared with the same period last year, based on improvements in underwriting profit, operating efficiency and technology.
The Fairfield, Ohio-based insurer reported net income was up $21 million to $57 million, or 92 cents a share. Revenues were down 4 percent, or $15 million, to $398 million.
For the first six months, net income rose 37 percent, or $32 million, to $120 million, or $1.95 a share. Revenues dropped $28 million, or 3 percent, to $807 million.
Revenues were affected by a drop in net premiums written, which were down 4 percent, or $15 million, to $357 million in the quarter and down 3 percent, or $24 million, for the six months to $702 million.
The company reported its combined ratio improved 7.8 points to 91.4 for the quarter compared with the same period last year. The six month combined ratio stands at 90.3, a 7-point improvement over 2006.
The company said in a statement that the combined ratio improvement was the result "of a significant increase in favorable prior-year loss and loss adjustment expense reserve development and a reduction in catastrophe losses."
Dan Carmichael, president and chief executive officer, said: "Our results reflect our successful efforts to maintain underwriting discipline in a very competitive market, and we continue to experience substantial favorable development from prior accident years."
Ohio Casualty is in the process of being acquired by Boston-based Liberty Mutual Group. The $2.7 billion deal is expected to close during the third quarter of this year.
The company is ranked 55th in the top 100 National Underwriter/Fitch Ratings P&C Rankings 2006 (see NU July 23/30, page 21).
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