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Ohio Casualty Corporation Announces Discontinuation of Direct Auto Strategy

22 December 2000

Ohio Casualty Corporation Announces Discontinuation of Direct Auto Strategy

    FAIRFIELD, Ohio--Dec. 22, 2000--Ohio Casualty Corporation today announced the discontinuation of its direct private passenger auto line of business, marketed under the Avomark brand.
    "This announcement aligns with our Corporate decision to focus on the independent agency system as our distribution channel," commented President and CEO Dan R. Carmichael, CPCU. "After further review of our Avomark operations, we believe that this direct sales strategy will not provide an adequate future return to our shareholders or play a major role in our operations. We plan to concentrate our resources on further strengthening our partnership with the independent agents who sell our products and providing excellent service to their customers. As for our Internet strategy, we are committed to developing Internet capabilities that focus on increased service support for agents and their customers, our policyholders."
    The decision is not expected to have a material financial impact on the fourth quarter 2000 results.
    The Company intends to work with regulatory authorities to implement a plan of orderly reduction of this direct business in compliance with the state laws and regulations in which the business is currently written. It is the Company's intention to materially reduce this direct business as expeditiously as possible. The employees currently committed to the Avomark product will be retained to service this product as the plan of reduction is implemented. Upon successful exit from the direct marketing business, the employees will be eligible to pursue other opportunities within the organization.

    Corporate profile

    Ohio Casualty Corporation is the holding company of The Ohio Casualty Insurance Company, which is one of six property-casualty companies that make up Ohio Casualty Group. Ohio Casualty Group is among the top 40 property and casualty insurance groups in the country, offering businesses and individuals a range of property-casualty products. The Group is active in more than 40 states, operates primarily through the independent agency system, and has written premiums of $1.6 billion. Ohio Casualty Corporation trades on the NASDAQ Stock Market under the symbol OCAS. Ohio Casualty Corporation has assets of approximately $4.5 billion.
    Ohio Casualty Corporation publishes forward-looking statements relating to such matters as anticipated financial performance, business prospects and plans, regulatory developments and similar matters. The statements contained in this news release that are not historical information, are forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor under The Securities Act of 1933 and The Securities Exchange Act of 1934 for forward-looking statements. The risks and uncertainties that may affect the operations, performance, development and results of the Corporation's business and the results of the acquisition described herein, include the following: changes in property and casualty reserves; catastrophe losses; premium and investment growth; product pricing environment; availability of credit; changes in government regulation; performance of financial markets; fluctuations in interest rates; availability and pricing of reinsurance; litigation and administrative proceedings; year 2000 issues; ability of Ohio Casualty to integrate and retain any acquired insurance business; and general economic and market conditions.