Exhibit 99
(Ohio Casualty Insurance Company Letterhead)
Analyst contact:
Dennis E. McDaniel
Vice President of Strategic Planning and
Investor Relations
513-603-2197
dennis.mcdaniel@ocas.com
Media contact:
Cindy L. Denney
Assistant Vice President, Corporate
Communications
513-603-2074 (ofc.), 513-703-7372 (cell)
cindy.denney@ocas.com
For immediate release
THE OHIO CASUALTY INSURANCE COMPANY
ANNOUNCES RETIREMENT PROGRAM CHANGES
FAIRFIELD, Ohio, March 15, 2004 -- The Ohio Casualty Insurance Company has
announced it will make changes to its pension, savings, and retiree medical
plans in the 2004-2006 timeframe, including the addition of several
enhancements. Ohio Casualty Corporation (NASDAQ:OCAS) is the holding company
of The Ohio Casualty Insurance Company.
"Just like many other companies, Ohio Casualty must address the changing needs
and desires of its employees and the increasing costs of existing pension and
retiree medical plans, while continuing to provide valuable and competitive
benefit programs," commented President and Chief Executive Officer Dan R.
Carmichael, CPCU. "We have studied the issues for many months and have
redesigned the retirement benefit program, offering new attractive features
that employees have said they value, including portability of benefits,
larger 401-K matching, a new company profit sharing program, and a redesigned
defined benefit program with an additional payment option."
The changes include:
- The Employee Savings Plan (a defined contribution plan) will be
significantly enhanced through increased Company matching
contributions, a new profit sharing feature beginning in July 2004,
and additional Company contributions beginning in January 2005 for
eligible employees.
- Changes will be made to the eligibility for Company-subsidized
retiree medical and dental coverage effective July 1, 2004. Ohio
Casualty, at this time, will continue to provide subsidized retiree
medical and dental coverage to current retirees, employees who
retire by July 1, 2004, and employees who have at least 25 years of
service as of July 1, 2004. Employees who retire from Ohio Casualty
on or after July 1, 2004 and have not completed at least 25 years of
service with the Company as of July 1, 2004 will have access to and
pay the full cost of retiree group medical and dental coverage.
Effective January 1, 2006, post-age 65 medical coverage will be
eliminated for employees who retire on or after July 1, 2004.
Because Medicare eligible retirees will have access to Medicare
prescription drug coverage, Ohio Casualty will stop covering
prescription drug expenses for all Medicare-eligible retirees and
their Medicare-eligible spouses effective January 1, 2006.
- Benefits accrued under the pension (defined benefit) plan's
current formula will be frozen effective June 30, 2004. Benefits
accrued after June 30, 2004 will be calculated using the pension
plan's new formula.
"We believe that our redesigned retirement program is attractive for
employees and remains very competitive in the marketplace," adds Mr.
Carmichael. "The added features provide employees more flexibility in
planning for their retirement and more of the benefits will be portable. We
also provide numerous tools to help employees plan for their future, based on
their individual needs and lifestyles. These features fit with our goals to
offer competitive benefit plans, while managing overall costs."
These changes to various benefit plans also result in a decrease in expenses
for the Corporation. This is consistent with its strategic objective to create
a competitive expense structure, previously announced as part of the
Corporate Strategic Plan for the 2004-2006 time frame. The decrease in expenses
is expected to be approximately $7.9 million before tax in 2004 and $5.6
million before tax in 2005, compared to the benefit plan expense for the year
2003. The Corporation provided a range for 2004 calendar year guidance on
February 11, 2004 and the effect of the benefit changes was included in the
range. Other broad objectives of the Corporate Strategic Plan include
increasing the Corporation's financial strength in the market, enhancing the
ability to profitably grow the business, continuing to deliver quality services
to customers, providing value to shareholders and attracting and retaining a
professional workforce.
Corporation Profile
Ohio Casualty Corporation is the holding company of The Ohio Casualty
Insurance Company, which is one of six property-casualty subsidiary companies
that make up Ohio Casualty Group. The Ohio Casualty Insurance Company was
founded in 1919 and is licensed in 49 states. Ohio Casualty Group is ranked
45th among U.S. property/casualty insurance groups based on net premiums
written (Best's Review, July 2003). The Group's member companies write auto,
home and business insurance. Ohio Casualty Corporation trades on the NASDAQ
Stock Market under the symbol OCAS and had assets of approximately $5.2
billion as of December 31, 2003.
Safe Harbor Statement
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 operations, performance and
development of the Corporation's business are subject to risks and
uncertainties, which may cause actual results to differ materially from
those contained in or supported by the forward-looking statements in this
release. The risks and uncertainties that may affect the operations,
performance, development and results of the Corporation's business 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; rating agency actions; acts of war
and terrorist activities; ability to appoint and/or retain agents; ability to
achieve targeted expense savings; ability to achieve premium targets and
profitability goals; and general economic and market conditions.
Ohio Casualty Corporation undertakes no
obligation to publicly release any revisions to
the forward-looking statements contained in
this release, or to update them to reflect
events or circumstances occurring after the
date of this release, or to reflect the
occurrence of unanticipated events. Investors
are also advised to consult any further
disclosures made on related subjects in the
Company's reports filed with the Securities and
Exchange Commission or in subsequent press
releases.