RTW Inc., which manages workers’ compensation programs, has reported net income for the fourth quarter ended Dec. 31, 2002, of $8.1 million, or $1.57 per basic and diluted share, compared to a net loss of $23.3 million, or $4.53 per basic and diluted share in the fourth quarter of 2001.
For the year, RTW reported net income of $14.3 million, or $2.78 per basic and diluted share, compared to a net loss of $25.2 million, or $4.89 per basic and diluted share for 2001.
The keys to renewed profitability both in the fourth quarter and for the year was the RTW’s focus on case and claims management capabilities and improved pricing, according to CEO J. Alexander Fjelstad.
Policies renewed in 2002 were priced at an 8.7 percent clip over 2001, Fjelstad said in a statement. This, along with aggressive management of claims and downward trending claim frequency bode well for RTW’s future profitability, the CEO said.
Premiums in force at Dec. 31, 2002 decreased to $54.2 million from $83.7 million at Dec. 31, 2001. Gross premiums earned followed the decrease in premiums in force to $14.6 million in the fourth quarter of 2002 from $22.1 million for the same period in the prior year, and to $62.5 million for the year ending Dec. 31, 2002 from $97.4 million for the same period in the prior year.
RTW manages workers’ comp programs for insured and self-insured employers in Minnesota, Wisconsin, South Dakota, Colorado, Michigan and Indiana.
Topics Profit Loss
Was this article valuable?
Here are more articles you may enjoy.