"I think companies are under-reserved across the board, especially in worker's comp," remarked Mr. Walker in response to an analyst's questions.

Generally, he said, while other premium rates have gone up, workers' comp has not because "the risk bearers have not recognized the claims that are going to grow."

Rates will continue to rise through next year, said Mr. Walker, and he anticipated the rate of increase would continue at between 10 and 15 percent, excluding workers' comp.

The firm reported the ninth consecutive year of profit, reporting a 64 percent increase in net income for 2001 compared to 2000.

Net income rose from $32.8 million last year to $54 million in 2001. The price per diluted share rose 32 cents, from 53 cents in 2000 to 85 cents for 2001.

Total revenues were up 38 percent, from $265 million in 2000 to $365 million in 2001.

Due to the pooling-of-interests accounting method, the firm issued a restatement of its 2000 fourth quarter and year-end results. Cory T. Walker, the firm's chief financial officer, explained that the restatement was made because the firm had to include the past financial performance of acquired companies in its report.

While premiums are on the increase, middle market companies, which the firm specializes in, are not seeing the rates of increase larger companies are, Mr. Brown said.

The increases have benefited the firm in some new business, Mr. Brown said.

"Some competitors are not keeping clients up to speed on increases and we are getting called in," Mr. Brown noted.

Clients have been able to get the insurance they want, Mr. Brown observed, but they have had to pay more. Only terrorism coverage is posing a problem, he added.

Mr. Brown provided no details with his prediction for the firm's performance in 2002, saying only, "we are going to have a damn good year."