Utica National continued a strong sales performance through the end of
the second quarter, but the severe spring weather added about 7.5 points to
the company’s loss ratio, and contributed to a moderate drop of about $11.3
million, about 1.3 percent, in the company’s Policyholders’ Security Fund,
which still stood at a very healthy $804.7 million.
J. Douglas Robinson, Chairman of the Board and Chief Executive Officer,
commented on the results following the second quarter meeting of the Boards
of Directors of the Utica National companies, held August 18 at the Home
Office in New Hartford, NY.
“The weather catastrophes of the spring covered a vast part of the
country, and included storms, hail, and even a tornado in upstate New York
of all places, an unusual occurrence,” he said.
On a dollar basis, Utica had named catastrophe losses that were $18
million higher than anticipated, another $4 million more than planned in
general weather losses, and $2 million more for the upstate New York
tornado.
Utica’s Claims Catastrophe Team was out at various places around the
country. “The weather events in the spring set records for their
number and their intensity, spreading destruction, injury and death. We’re
proud of our role in helping make people whole again after such calamities,”
Mr. Robinson said.
He indicated that sales continued to be a great story for the company,
with direct written premium of $280.4 million coming in $9.4 million or 3.5
percent over quota. The sales total moves up to $333 million, 1.3 percent
over plan, when Utica’s new member company, Founders Insurance of Des
Plaines IL, is included.
The company’s claim activity was a continuation of winter’s first-quarter
onslaught; however, in the second quarter Utica also saw some general
deterioration, in Workers Compensation and in some increased large loss
activity. “July results look a little more promising,” he said.
Utica National also introduced some new products in the first half of the
year and has some others pending. In Personal Lines, the company
rolled out its “Homeowners Essentials” product in New York as a companion to
its Personal Auto Essentials. In Commercial Lines, Utica will introduce its
new and very timely Cybersurance product in the fall, following the recent
and successful roll-out of a similar product for its Agents Errors and
Omissions clients.