Ohio Casualty Corporation announced that it expects net catastrophe losses in the range of $6 to $8 million before-tax from Hurricane Charley. The catastrophe loss impact for Hurricane Charley is expected to add approximately 2 points to the third quarter 2004 combined ratio. Catastrophe losses for the entire third quarter of 2003 had a 4.5 point impact on the quarterly combined. The 1997-2003 historical average quarterly combined ratio impact of third quarter catastrophes was 3.1 points.
At this time the Corporation is maintaining its most recent statutory combined ratio guidance of 98 percent to 101 percent for the full year 2004.
The majority of claims reported to date are related to commercial policies covering businesses located in Florida. The insurance subsidies completed their withdrawal from Florida for personal lines in May 2004 and expect minimal personal lines losses from this storm in the other impacted East Coast states.
Claims staff was in place immediately following the storm to assist policyholders and to assess damage. Claims adjusters have been contacting insured businesses, especially those located in the counties that have suffered the most significant storm damage.
President and Chief Executive Officer Dan Carmichael, CPCU, commented, “Our deepest sympathy goes out to those who have lost loved ones, homes and businesses. Our claims staff is working hard to address the needs of our policyholders affected by the storm.”
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