In a move to jump-start its falling stock and return to the black, Ohio Casualty Corp. has unveiled a major restructuring plan. With the move, the Fairfield-based insurer saw its shares of stock vault 16 percent earlier in the week. The overhaul includes eliminating products in unprofitable markets and major cost cutting.
According to a report in the Cincinnati Enquirer, the company plans no major layoffs, however is offering an early retirement incentive to employees at least age 55 with 10 years of service as of June 30. (Employees 65 or older as of June 30 are also eligible, regardless of years of service).
Currently, Ohio Casualty employs some 1,750 people locally and 3,400 across the country. According to a company report, the company figures 75 to 80 percent of the 335 eligible employees could take the offer.
The insurer saw a loss of $79.2 million last year as higher than expected losses in some areas of business offset rate increases.
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