Reliance Group Holdings subsidiary Reliance Insurance will increase its loss reserves by $332 million in the third quarter as a result of an actuarial review. The increase will bring the company’s total reserves to roughly $3.5 billion, which is covered by about $4.6 billion held by Reliance in cash and securities. It also worsens Reliance’s financial outlook, which was not positive to begin with. The company must repay $237.5 million in bank debt and $291.7 million in bond debt next month. The insurer, which is discussing its condition with insurance regulators in Pennsylvania, will likely declare bankruptcy in the next few months. It has sold off almost all of its cash-generating businesses.
Was this article valuable?
Here are more articles you may enjoy.
Insurtech Lemonade Posts $43.7M Loss for Q3 
Five Weeks After Isaias, 68,000 Claims and $736M in Losses, Florida Carrier Data Show 
Ivans: US Commercial Renewal Rate Increases Slowed in October 
Allstate’s AI Ecosystem to Include a Personal Agentic Assistant for Customers From This Issue
