Ohio Casualty: Job cuts to save company millions annually (400 - 500 jobs)

[UpInArms]

http://www.journal-news.com/news/newsfd/auto/feed/news/2004/05/05/1083807866.02632.6898.0208.html?urac=n

(free registration or try www.bugmenot.com)

HAMILTON — Ohio Casualty Group (Nasdaq: OCAS) announced Wednesday that plans to reduce almost 19 percent of its workforce during 2004 will save the company $5.5 million this year and a projected $19.7 million each year beginning in 2005.

The company has plans to cut staff by a total of 400 to 500 positions this year. Ohio Casualty has already eliminated 384 staff positions company wide through April, according to the first quarter earnings statement released on Wednesday.

The Cost Structure Efficiency Initiative — which was announced in February along with the reduction of 260 employees and the expectation to cut another 150 to 250 job cuts by the end of the second quarter — is “designed to improve productivity and customer service,” said President and CEO Dan Carmichael in the written statement.

In addition, the company reported a combined ratio of 100.7 percent, an 8.1 point improvement over last year. This marks the company’s best quarterly financial results on combined ratio since 1996, according to a company statement. Combined ratio is the sum of losses and underwriting expenses, and is a major indicator of financial performance for the industry.

<snip>

“I’m very pleased with our first quarter results, which positively reflect the significant underwriting actions we have taken over the last three years to improve profitability,” Carmichael said. “We have seen significant improvement over the last year’s results in both net income before net realized gains and statutory combined ratios, which are in line with our full year guidance.”

...more...