Weather Losses Hit Auto-Owner's Net Income

Weather-related losses and declining investments drove a 57% drop in 2008 net income for Michigan?s largest property/casualty insurer.

Lansing, Mich.-based Auto-Owners Insurance Group reported net income of $192 million for its property/casualty business, down from $446.6 million in 2007, according to the company.

?To say 2008 was a challenge is an understatement,? Auto-Owners Chief Executive Officer Ronald Simon stated in the company?s annual report for 2008. ?Our net weather-related losses were the most in our history. Net premium decreased by $77 million while our policy count increased by 3.6%.?

Claims-related expenses for the property/casualty book of business increased 7.9% to $3.32 billion in 2008. Net investment income for property/casualty was down 8.3% and totaled $429.7 million for the year.

Net income for Auto-Owners? life insurance operations declined 33% to $13.4 million.

The company, which is among the 20 largest property/casualty companies in the United States, reported total assets of $13.5 billion at year end, a 1% decline from 2007.

Auto-Owners finished construction in October 2008 on a 15,450-square-foot regional office if Fargo, N.D. The company also expects to complete work on a 95,000-square-foot data center near its Lansing headquarters in August of this year.

Auto-Owners Insurance Group currently has a Best?s Financial Strength Rating of A++ (Superior)