Fitch Affirms Ohio Casualty's Financial Strength and Debt Ratings; Outlook Stable

December 22, 2004

Fitch Ratings has affirmed the "A-" insurer financial strength ratings of Ohio Casualty Group's intercompany pool members as the parent company's "BBB-" long-term issuer rating and outstanding debt. The rating outlook is stable, the agency said.

Fitch said in a statement that the ratings reflect Ohio Casualty's improved operating results, strong capitalization and reasonable financial leverage. Weighted against these positives were significant adverse reserve development for prior years' losses and a high operating expense ratio relative to peers and the industry.