Reliance Group Holdings Inc. may seek bankruptcy protection in order to restructure its debt. The company, which is experiencing mounting losses, will operate its property/casualty insurance businesses as a run-off company, paying off claims and continuing to seek buyers for most of its insurance lines while not renewing other lines. Reliance recently posted a second-quarter net loss of $504.5 million, compared with a net loss of $156.9 million for the same period 1999. In addition, company shares have lost more than 85 percent of their value during the past two years. A proposed $293-million purchase of Reliance by Leucadia National Corp. fell through in July.
Was this article valuable?
Here are more articles you may enjoy.
How Federal Ban on Intoxicating Hemp Products Will Reshape Risk, Coverage 
More Florida Insurers Announce Rate Cuts for Auto, Homeowners, Condo Units 
Father and Son Charged With Running ‘Chop-Shop,’ Selling Stolen Cars, Insurance Fraud 
Chubb CEO Greenberg: Industry Has to ‘Put Arms Around’ AI Liability From This Issue
