W.R. Berkley Corp. of Greenwich, Connecticut announced that it has established a reserve of $12 million, “after taxes and net of reinsurance, for potential losses arising from the recent bankruptcy filing by Enron Corporation.”
“These losses are a result of the Company’s surety reinsurance of companies that operate as national surety insurers,’ said the announcement. It noted that, although it has included them in the reserve, it was of the opinion that “certain classes of bond guarantees” should not be included in its surety reinsurance contracts.
Berkley also stated that as of January 1, 2002 it will “cease writing business with exposures to large national risks
, and will focus primarily on its regional surety reinsurance business”
The announcement added that the amount was subject to revision as further developments concerning Enron’s bankruptcy emerge, but indicated that Berkley had “no direct exposure to Enron in its investment portfolio or any other lines of insurance.”|”w.r., berkley, sets, $12, million, reserve, on,
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