Seibels Bruce Getting out of Home State Voluntary Nonstandard Auto

Columbia, SC-based The Seibels Bruce Group this morning announced it is withdrawing from the voluntary nonstandard automobile insurance market in South Carolina.

``Last month, we announced the discontinuation of our Graward General Companies, Inc., nonstandard automobile insurance operation and our immediate plans to review every line of business for profitability,'' said Jack Natili, executive vice president and chief operating officer. ``Upon review of our South Carolina voluntary nonstandard automobile insurance business, we decided to withdraw from the market, which has resulted in higher than acceptable loss ratios and a strain on the company's earnings and resources. We will redirect our efforts toward those areas that we believe will produce a profit for Seibels Bruce.''

The company plans to continue to service the fee-based nonstandard automobile insurance business that relates to the South Carolina Reinsurance Facility (SCRF) run-off. As a servicing carrier for SCRF, Seibels Bruce earns commission and service income as a percentage of gross premiums written and also earns a fee on claims paid.

``While Seibels Bruce has a history of serving the South Carolina automobile insurance market since becoming a servicing carrier for SCRF in 1974, our management team is firmly committed to returning the company to profitability,'' stated Natili. ``To do that, we are faced with changing our approach to the industry.''

The Seibels Bruce Group, Inc., is a provider of automobile, commercial lines and other property and casualty insurance products. In addition, the Company receives fee-based income through the National Flood Insurance Program, various state-sponsored insurance plans and claim administration and other insurance services.