Infinity Property and Casualty Corporation
Infinity Property and Casualty — Q1 2003 Earnings Presentation
10 slides from Infinity Property and Casualty's earnings presentation, May 6, 2003
Slide 1: First Quarter 2003 Earnings Webcast
INFINITY First Quarter 2003 Earnings Webcast April 30, 2003
Slide 2: Forward-Looking Statement Disclaimer
Forward-Looking Statement Disclaimer This webeast contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1893 and Section 21E of the Securities Exchange Act of 1994. All statements in this webcast not dealing with
Slide 3: Underwriting Results Continue to Improve
Underwriting Results Continue to Improve Statutory Combined Ratios 115.0% 110.0% ee Personal Lines Industry 100.0% Infinity P&C 95.0% 95.2% 90.0% 1997 1998 1999 2000 2001 2002 © 2003 Or Pct. Points Better 2.8% 57% 58% 1.2% 62% 77% 6) Pexova nes natenyper ager B hekanense'raser mes agey & 2 AM ete et
Slide 4: What is Driving Underwriting Improvement
What is Driving Underwriting Improvement °Rate Increases of 12% Taken in 2002 Continue to Earn into Results « Lower Accident Frequency Moderate Claim Severity Trends eFurther Reduction of Business in Unprofitable Non-Focus States «Further Expense Reductions from Consolidation Efforts 4 :
Slide 5: Selected Geographic Focus
Selected Geographic Focus Focus on 14 States with the Best Opportunity for Profitable Growth First Qtr First Qtr 2003 2003 Gwe Gwe Growth Mix Franchise States (4)% 74% Resource States (34)% 12% Maintenance States (33)% 1% Exit States (66)% 3% All States (17)% 100% = Build Scale in Five Franchise & N
Slide 6: Rate Actions Moderate Relative to Competitors
Rate Actions Moderate Relative to Competitors 2000-2001 2002 2003(1) Rates: Infinity? 14% 14% 12% 4% Personal Auto Industry 1% 4% % 9% Underlying Loss Costs: 4% 8% 4% 3% tout Mate 31,2008 NGANaAGS med Agency 8 sere G—Acaes eqalvenibg oat Reparavaiae vvce Care ava neaalCar Core « Early Rate Increases
Slide 7: Infinity Financial Summary
Infinity Financial Summary erry First Quarter 2003 2002 Pro Forma Gross Written Premiums $286 «) $309 Total Revenues 181 229 GAAP Underwriting Profit) 10 ) After Tax Operating Earnings 2°) "1 9 Net Earnings 12 9 Operating Earnings Per Share $55 $.45 EPS. $57 $.44 Return on Average Equity (ex FAS 115
Slide 8: Financial Highlights
Financial Highlights Revenues Are Down = Gross Premiums Down 17% = GAl Assumed Agency Business Included in PD Quota Share = Investment Income Is Down Profits Are Up = Underwriting Continues to be Strong " Offsets Are: ~ Lower Investment Income — Holding Company Expenses — Extra Contractual Losses
Slide 9: Financial Prospects for Rest of 2003
Financial Prospects for Rest of 2003 *Revenue Decline Should Moderate = Roll Out New Programs in Franchise States = Should Complete Withdrawal from Exit States by Third Quarter = Competitors Should Continue to Aggressively Increase Rates = Investment Income Should Continue to Decline Slowly ° Profit
Slide 10: Status of Long Term Financing
Status of Long Term Financing «Current Capital Levels are Adequate to Support Current Business «Preliminary Discussions to Renew Physical Damage Quota Share Agreement for 2004 ° Exploring a Variety of Long-Term Financing Options ° Also Pursuing Line of Credit Facility 10
Infinity Property & Casualty — Q1 2003 Earnings Presentation on 6ix