Utica National continued to see excellent results in its underwriting ratios through the first three quarters of the year.  The underwriting performance was overshadowed by an addition to the company’s reserves for asbestos claims, which was posted in the third quarter.

“Excluding the addition to the asbestos reserves, our core business generated a net gain to our Policyholders’ Security Fund (PHSF, or surplus) of $45.2 million,” said J. Douglas Robinson, Chairman of the Board and CEO.  “Our loss ratio on our core business was right on plan and our combined loss and expense ratio was just a point over plan.”

With the asbestos reserves included, Utica’s Policyholders’ Security Fund decreased $27.7 million to stand at $742.5 million, which Mr. Robinson noted “still puts us in a very strong financial position, thanks to the outstanding results our employees and our independent agents have helped us produce over the last five years.”

Utica’s sales were 4.7 % under plan, with premium growth still very difficult to come by, as the recession continues to reduce exposure growth and limit the demand for insurance.  The company did have some bright spots, however, with continued strong growth in Personal Lines, where new business policy count was up 99 % from 2008, and in Commercial Lines, where new business premium was up 23% for the quarter and 18 % for the year, “an excellent result,” Mr. Robinson noted.

Mr. Robinson said that while the addition to Utica’s asbestos reserves “puts a damper on what would otherwise be yet another year of excellent operating results, the rating agencies like A.M. Best recognize this, with A.M. Best having already affirmed our “A-” or “Excellent” rating with a stable outlook, after being apprised of the asbestos reserve increase.

“It’s the strength of our performance over the last five years – a period where we have put up some of the best numbers in our company’s history, in spite of the asbestos legacy – that has put us in a position to handle these losses and still be a source of strength and security for our mutual policyholders.”

 

Close