A Framingham, Mass. company writing property and casualty insurance for the lumber industry was put into state receivership Wednesday after reporting large losses for the past few years.
A note on the company’s website addressed to “clients, staff and friends of Lumber Insurance” said the company has been “unable to stop the adverse trends in earnings” as reported by the Boston Globe. Losses have reportedly been running at $100,000 a day, according to the note.
The memo from company President Neal F. Finnegan went on to say the projected losses for the year would exceed $22 million. “When we combine this with 1998 and 1999 losses and certain additional hits, we will be below a surplus level that we and the insurance commissioner feel is adequate.” The company, with 175 employees, has about 16,000 policies in force throughout the country, the report noted.
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