Infinity Property & Casualty

Infinity Property & Casualty Corporation (IPCC) is a provider of personal automobile insurance with an emphasis on nonstandard auto insurance. Nonstandard auto insurance provides coverage to drivers who, due to their driving record, age or vehicle type, represent higher than normal risks and pay higher rates for comparable coverage.

Based on data published by A.M. Best, we believe we are the second largest provider of nonstandard auto coverage through independent agencies. Our personal automobile coverage is offered nationally through a network of approximately 14,000 independent agents.

Our subsidiary insurance companies include Infinity Insurance Companies, Windsor Group, Atlanta Casualty Companies and Leader Insurance Companies. Prior to its IPO in 2002, Infinity Property & Casualty Corporation and its subsidiaries were part of the Great American Property & Casualty Group.

Infinity is a progressive Company with many work/family programs designed for the benefit of our employees. These include:

We offer an excellent benefit package which includes:

Infinity Property and Casualty Announces Third Quarter Earnings Per Share of $1.10
BIRMINGHAM, Ala., Oct 26, 2004 /PRNewswire-FirstCall via COMTEX/ -- Infinity Property and Casualty Corporation (Nasdaq: IPCC), a national provider of personal automobile insurance with an emphasis on nonstandard auto insurance, today reported that net earnings for the third quarter of 2004 were $23.0 million or $1.10 per share, on a fully diluted basis, compared to net earnings of $15.0 million or $0.72 per share for the third quarter of 2003. For the first nine months of 2004, net earnings were $64.7 million or $3.10 per share, as compared with $38.8 million or $1.89 per share for the same period in 2003.

Operating earnings, a non-GAAP measure, were $21.1 million or $1.01 per share for the third quarter of 2004 compared to $14.5 million or $0.70 per share for the third quarter of 2003. For the first nine months of 2004, operating earnings were $60.9 million or $2.92 per share, as compared with $37.9 million or $1.84 per share for the same period in 2003. Operating earnings is defined at the end of this release and reconciled to net earnings, the most comparable GAAP measure.

Underwriting income, a non-GAAP measure, was $22.0 million and $65.5 million in the third quarter and first nine months of 2004, respectively. By comparison, $13.8 million and $36.3 million of underwriting income was earned in the third quarter and first nine months of 2003, respectively. Infinity produced a GAAP combined ratio in the third quarter of 90.0%, compared to 92.0% in the third quarter of 2003. For the first nine months of 2004, the GAAP combined ratio was 89.9% compared to the 92.8% in the first nine months of 2003. Underwriting income is defined at the end of this release and reconciled to net earnings, the most comparable GAAP measure.

Catastrophe losses in the third quarter of 2004 were $1.9 million including $2.2 million from the four hurricanes and a $0.3 million release of excess reserves on catastrophes from prior periods. Catastrophe losses for the third quarter of 2003 were $0.4 million.

Net written premiums for the quarter ended September 30, 2004 were $222.1 million compared with $226.6 million for the same period in 2003. Net written premiums for the first nine months of 2004 were $682.9 million, a 9.7% increase over the $622.8 million in net premiums for the first nine months of 2003. The increase in net written premiums in the first nine months of 2004 compared to the first nine months of 2003 is largely attributable to the reduction in the auto physical damage ceded premiums from 90% in the first six months of 2003 to 10% in the first six months of 2004. Excluding the auto physical damage quota share, net premiums written in the third quarter and first nine months of 2004 were $229.6 million and $699.9 million, respectively compared to $236.5 million and $799.0 million for the same periods in 2003.

Our corporate mission at The Infinity Group is to provide premier personal automobile insurance products and quality service to our agents and customers.

Our overall objective is to produce consistent underwriting results by structuring exceptional programs and providing superior service, and to grow our business every year.

This objective will be accomplished by creating a workplace where employees are challenged to improve our work product. We will strive to make certain that our people understand the link between their performance and the success of the company; that goals are established, responsibilities are given, and measurements are installed to ensure accountability across functions; and, that we operate a company with integrity where mutual respect and teamwork are more than mere words.

In today's rapidly changing economic climate, we like to think of ourselves as both challenged and fortunate to be able to serve our insureds in ways they have grown to trust in the past. Our goal at the The Infinity Group is to do just that. After all, that's what "Infinity" means -- unlimited excellence.