Texas-based GAINSCO Inc., a holding company with personal auto insurance agencies in Florida, announced that a non-affiliated reinsurer has taken possession of trust assets per a reserve reinsurance cover agreement with the company. GAINSCO does not expect the reinsurer action to have a material impact on shareholder equity or statutory policyholders’ surplus for the first quarter ended March 31. The reinsurer was entitled to take this action as a result of GAINSCO’s year-end 2001 results. Based upon balances as of Dec. 31, 2001, investments and funds held under reinsurance agreements would each be reduced by approximately $47.8 million. Provided the reinsurer continues to be responsible for reimbursing the company for claim payments covered under this agreement, GAINSCO’s reinsurance should not be affected.
Topics Reinsurance
Was this article valuable?
Here are more articles you may enjoy.
World’s Largest Retirement Community Set to Borrow $180 Million for More Homes 
AM Best: Social Inflation Drives Surge in Commercial Auto Liability Claims 
Former Trident Reciprocal CEO Ordered to Pay $468K in Attorney and Arbitrator Fees 
Storm Austen Will Be Stronger Than Forecast Along UK Coasts From This Issue
