Louisiana Department of Insurance

Released: May 25, 2007

Commissioner of Insurance Jim Donelon announced today that rates for workers' compensation insurance are decreasing, thanks to a large drop in loss costs for insurers.

Most workers' comp carriers in Louisiana use the National Council on Compensation Insurance (NCCI) annual loss cost filing report to help formulate their insurance rates. As a result of a recent NCCI lost cost filing showing Louisiana with the nation's largest percentage drop in loss costs at 15.8%, several companies have filed for a rate decrease with the Department of Insurance. More filings are coming in at present and this trend will likely continue.

Shown on the attached exhibit are the companies with a statewide market share of 0.1% or more requesting a rate decrease over the past month. The 27 companies shown are collectively requesting an average 15.9 percent decrease in rates. The total Louisiana workers' compensation market is estimated at $1.03 billion. These 27 companies account for $230 million or approximately 22.4 percent of the market.

"This is positive news for our state's workers' compensation market," said Commissioner Donelon. "Our market is healthy and viable."

Companies Requesting a Workers' Compensation Rate Decrease in April and May 2007*

Company Name	Group Name	Requested Revision (%)	Market Share ($000’s)	Market Share (%)
Federated Rural Electric Ins Exchange	N/A**	-26.5%	$ 1,149	0.1%
Liberty Ins Corp	Liberty Mutual	-22.1%	$ 21,764	2.1%
Liberty Mutual Ins Co	Liberty Mutual	-22.1%	$ 16,645	1.6%
Liberty Mutual Fire Ins Co	Liberty Mutual	-22.1%	$ 9,322	0.9%
LM Ins Corp	Liberty Mutual	-22.1%	$ 4,833	0.5%
The First Liberty Ins Corp	Liberty Mutual	-22.1%	$ 1,094	0.1%
Valley Forge Ins Co	CNA	-17.5%	$ 3,782	0.4%
SeaBright Ins Co	N/A**	-15.8%	$ 12,121	1.2%
Arch Ins Co	Arch	-15.8%	$ 1,284	0.1%
Old Republic Ins Co	Old Republic General	-15.6%	$ 1,927	0.2%
American Home Assurance Co	AIG	-15.1%	$ 41,254	4.0%
Commerce and Industry Ins Co	AIG	-15.1%	$ 29,550	2.9%
The Insurance Co of the State of PA	AIG	-15.1%	$ 16,575	1.6%
Illinois National Ins Co	AIG	-15.1%	$ 14,286	1.4%
New Hampshire Insurance Co	AIG	-15.1%	$ 11,797	1.2%
American International South Ins Co	AIG	-15.1%	$ 3,056	0.3%
National Union Fire Ins Co of Pitts, PA	AIG	-15.1%	$ 2,577	0.3%
Bituminous Casualty Corp	Old Republic General	-13.0%	$ 3,736	0.4%
LA Oilfield Contractors Assn Ins Fund	N/A**	-10.6%	$ 4,707	0.5%
Twin City Fire Ins Co	Hartford	-10.0%	$ 4,983	0.5%
Hartford Ins Co of the Midwest	Hartford	-10.0%	$ 3,640	0.4%
Hartford Underwriters Ins Co	Hartford	-10.0%	$ 2,789	0.3%
Hartford Casualty Ins Co	Hartford	-10.0%	$ 1,828	0.2%
Hartford Fire Ins Co	Hartford	-10.0%	$ 1,325	0.1%
National Fire Ins Co	CNA	-9.2%	$ 2,842	0.3%
Transportation Ins Co	CNA	-6.5%	$ 4,955	0.5%
Continental Casualty Co	CNA	-5.3%	$ 6,407	0.6%
Total 27 Companies		-15.9%	$230,228	22.4%

* Companies with at least 0.1% market share

** No group affiliation