Ohio-based CFC also reported that its net income rose to $36 million, or 22 cents per share, in the three months ended in December. This compares to a net loss of $41 million, or 26 cents per share, for the same period a year ago.

Net operating income was 36 cents per share for the quarter. Mr. Schiff noted that this was "in line with what everyone was expecting." Net operating income for the same period a year ago was minus 14 cents per share.

Total revenues for the fourth quarter rose 12.5 percent to $654 million.

"We are on track," declared Mr. Schiff. He said that the fourth-quarter results "give us reason for optimism as well as further confidence in our ability to return long-term performance to its historic level."

Mr. Schiff added that CFC also is encouraged by signs in the property-casualty industry of "firmer and more rational pricing."

Net premiums written by the property-casualty insurance group grew 14.2 percent for the fourth quarter. The p-c group consists of The Cincinnati Insurance Co., The Cincinnati Casualty Co. and The Cincinnati Indemnity Co.

Mr. Schiff said that the main source of premium growth was firmer pricing on new and renewal commercial business. He added that CFC was able to identify previously underpriced accounts and to write "good business that others have missed because of their wholesale approach."

CFC said its fourth-quarter and full-year 2000 results included a $110 million pre-tax addition to reserves for uninsured motorist losses reported or paid in 2001 and after.

Net pre-tax catastrophe losses for fourth quarter 2001 were $9 million, or 4 cents a share after taxes, compared with $3 million, or 1 cent per share in fourth quarter 2000.

CFC said a single wind and hail event in October had caused $8 million in damage to about 1,000 policyholders in eight southern and midwestern states.

Mr. Schiff also characterized CFC's Sept. 11 losses as "relatively minor at $9 million."

CFC's combined ratio of 102.6 percent for the fourth quarter represented an improvement from 129.1 percent for the same period last year.

CFC indicated that it is tackling its least profitable lines?workers' compensation, commercial automobile and homeowners?with rate increases, underwriting guidelines, product refinements and new building-cost estimating tools.