RTW (RTWI) 8-K Other events

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): June 20, 2003

RTW, Inc.

(Exact name of registrant as specified in its charter)

Minnesota

(State or other jurisdiction of incorporation)

0-25508	41-1440870
(Commission File Number)	(I.R.S. Employer Identification No.)
8500 Normandale Lake Blvd., Suite 1400
Bloomington, MN	55437
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code    (952) 893-0403

TABLE OF CONTENTS

Items 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12 are not applicable and therefore omitted

ITEM 5 — OTHER EVENTS:

     The following information is provided to supplement the disclosures contained in the Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2002 Annual Report on Form 10-K.

     The following loss reserve development table sets forth the change, over time, of gross reserves established for claim and claim settlement expenses at the end of the last ten years. The following gross loss reserve development table is cumulative and, therefore, ending balances should not be added since the amount at the end of each calendar year includes activity for both current and prior years (000’s):

								December 31,
								(000’s)
			2002		2001			2000			1999			1998			1997
Loss Reserve Development:
	Gross reserves for unpaid claim and claim settlement expenses		$	181,262	$	181,310		$	128,841		$	99,831		$	97,269		$	61,069
	Paid (cumulative) as of:
		One year later			$	46,043		$	49,241		$	45,933		$	37,062		$	28,315
		Two years later							74,681			67,442			56,031			42,889
		Three years later										78,244			65,664			50,558
		Four years later													70,631			54,835
		Five years later																57,261
		Six years later
		Seven years later
		Eight years later
		Nine years later
		Ten years later
	Reserves re-estimated as of:
		End of year	$	181,262	$	181,310		$	128,841		$	99,831		$	97,269		$	61,069
		One year later				183,923			160,065			118,205			85,384			72,443
		Two years later							168,222			130,120			95,696			64,499
		Three years later										137,002			101,893			73,031
		Four years later													107,522			75,554
		Five years later																79,398
		Six years later
		Seven years later
		Eight years later
		Nine years later
		Ten years later
	Initial reserves in excess of (less than) re-estimated reserves
		Amount			$	(2,613	)	$	(39,381	)	$	(37,171	)	$	(10,253	)	$	(18,329	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

						December 31,
						(000’s)
			1996			1995		1994		1993		1992
Loss Reserve Development:
	Gross reserves for unpaid claim and claim settlement expenses		$	49,256		$	37,138	$	28,165	$	13,279	$	2,688
	Paid (cumulative) as of:
		One year later	$	20,529		$	10,032	$	7,625	$	4,065	$	1,238
		Two years later		29,841			15,306		10,899		6,390		1,642
		Three years later		35,370			18,415		13,261		7,392		2,022
		Four years later		38,880			19,964		14,449		8,284		2,139
		Five years later		41,029			21,289		15,126		8,754		2,340
		Six years later		41,980			22,117		15,650		8,839		2,415
		Seven years later					22,702		15,952		9,032		2,319
		Eight years later							16,226		9,182		2,341
		Nine years later									9,204		2,408
		Ten years later											2,342
	Reserves re-estimated as of:
		End of year	$	49,256		$	37,138	$	28,165	$	13,279	$	2,688
		One year later		44,862			26,086		23,486		13,083		3,083
		Two years later		48,233			22,295		16,774		11,281		2,982
		Three years later		44,587			24,111		15,776		9,258		2,586
		Four years later		50,552			23,054		16,545		9,180		2,419
		Five years later		52,063			26,485		16,274		9,392		2,546
		Six years later		54,327			27,237		18,243		9,120		2,574
		Seven years later					28,411		18,949		9,963		2,346
		Eight years later							19,485		10,283		2,468
		Nine years later									10,198		2,408
		Ten years later											2,490
	Initial reserves in excess of (less than) re-estimated reserves
		Amount	$	(5,071	)	$	8,727	$	8,680	$	2,781	$	198

     The table above represents the development of balance sheet gross reserves for 1992 through 2002. The upper portion of the table shows the cumulative amount paid with respect to the previously recorded reserves as of the end of each succeeding year. The lower portion of the table shows the re-estimated amount of the previously recorded gross reserves, based on experience as of the end of each succeeding year. The estimate is either increased or decreased as more information becomes known about the frequency and severity of claims for individual years.

     The “initial reserves in excess of (less than) re-estimated reserves” rows represent the aggregate change in the estimates over all prior years. For example, the 1998 reserve developed a $10.3 million net deficiency over the course of the succeeding years.

     In evaluating this information, it should be noted that each amount includes the total of all changes in amounts for prior periods. For example, the amount of redundancy (deficiency) to losses settled in 2002, but incurred in 1999, is included in the cumulative redundancy (deficiency) amounts in 1999, 2000 and 2001. This table does not present accident or policy year development data, which certain readers may be more accustomed to analyzing. Conditions and trends that have affected development of the reserves in the past may not necessarily occur in the future. Accordingly, it may not be appropriate to extrapolate redundancies or deficiencies based on this table.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

RTW, Inc.

Dated: June 20, 2003	By	/s/ J. Alexander Fjelstad
		J. Alexander Fjelstad
		Chief Executive Officer
		(Principal Executive Officer)