On a positive note, Mr. Carmichael pointed out that Ohio Casualty still maintained significant price increases for all its business segments.

Despite a lower overall profit, a number of Ohio Casualty's major product lines had near or better than break-even results in terms of statutory underwriting profit, the company said.

It said those lines included personal auto, excluding its run-off business in New Jersey, commercial multiple peril, and other commercial property business, as well its specialty lines.

Mr. Carmichael added that while some lines stagnated during the quarter, the company has taken steps to improve these lines and expects them to generate better results as the year 2003 progresses.

The company's subsidiaries include Ohio Casualty Insurance, West American Insurance, Ohio Security Insurance, American Fire and Casualty, and Ohio Casualty of New Jersey.

Ohio Casualty has a variety of business and consumer insurance lines. It provides property-casualty insurance, including auto liability, homeowners, workers' compensation and commercial multi-peril lines, in some 40 states through more than 5,000 independent agents.