BEST FORECASTS DETERIORATiON

Despite a recent hardening of prices in the property/casualty industry, underwriting performance worsened during the first half of 2000, according to A.M. Best Co.’s six-month report. The industry’s average combined ratio for the second quarter of 2000 was 111.2, compared to 107.3 for the same period in 1999. As a result, the first-half combined ratio deteriorated from 105.1 at June 30, 1999 to 109.2 in 2000, nearly a full point higher than Best’s original full-year forecast of 108.5. Best stated that further deterioration could be expected as year-end loss-reserve reviews are completed. Consequently, Best had revised its full-year combined ratio projection to 110.0.