Utica National posts another strong year

Tuesday, February 26, 2008

Utica National had excellent financial results in 2007, adding $76.6 million to its combined Policyholders' Security Fund, which included an underwriting profit of $14.8 million, boosting the Security Fund to an all-time high of $812.5 million.

That was the report of J. Douglas Robinson, Chairman of the Board and CEO, following the annual meeting of the Boards of Directors of Utica's member companies.

It was the fourth consecutive year the company posted an underwriting profit, and the fourth consecutive year the company's loss and expense ratio was under 100, coming in at 97.9.  This meant that Utica paid out about 98 cents of each premium dollar for losses, underwriting expenses and claims adjusting expenses.

Total sales were $657.6 million, a slight decline from 2006 due to increased competition and a significant rate reduction in Utica's book of New York Workers' Compensation insurance.  However, overall policy and premium retention were better than planned and Utica wrote more than $82 million of new business.

Mr. Robinson indicated that Utica's investments showed good growth, "reflecting a sound and conservative management of our assets. It's worth noting that we have no direct exposure or investment losses regarding the current sub-prime mortgage problem."

Utica's net income before tax was $111.6 million.  The company paid federal taxes of $33.6 million, $5.4 million more than planned, and in addition Utica paid state premium taxes and assessments of $21.6 million as part of its underwriting expenses.  The gain of $76.6 million to the Policyholders' Security Fund, after federal taxes and other adjustments, was almost $7 million above plan.