Bermuda based insurance broker and program manager Stirling Cooke Brown Holdings Ltd., posted a $1 million net loss for the 1st quarter, compared with net income of $3.6 million last year.
Total revenues for the quarter decreased by $7.2 million, from $23.6 million in 1999 to $16.4 million this year.
Stirling Cooke, which does business mainly in the U.S. workers’ compensation market, suffered from the general softness in that sector, as well as restructuring costs, notably the decision to discontinue writing reinsurance programs.
It also incurred extraordinary expenses related to several ongoing lawsuits involving the Univcover Pool in which it is a defendant.
Insurance revenues, earned by the company’s U.S. based insurance carrier, increased, however, by $1.9 million from $4.8 million to $6.7 million.
Commenting on the results, President and CEO Stephen A. Crane stated, “Despite adverse market conditions, first quarter results were in line with our expectations. We continue to anticipate a return to profitability by the end of the year.”
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