Transatlantic Holdings, Inc. announced that it will add $100 million to net loss reserves in the fourth quarter of 2002, “related principally to losses occurring between 1998 and 2000 in certain casualty lines.”
As a result the company will record a charge of $65 million to fourth quarter 2002 earnings for the after-tax impact of the reserve increases. It indicated that the adjustment was based on “recently reported claims experience reflecting industry-wide trends, and is a result of the Company’s normal recurring loss reserve study.”
“While this action will reduce the quarter’s earnings, Transatlantic’s financial strength and market positioning remain on very strong footing, with stockholders’ equity exceeding $2 billion and net loss reserves exceeding $3 billion,” commented Robert F. Orlich, President and CEO. “Transatlantic had a solid year in 2002, with record increases of premiums and cash flow — the result of much improved market conditions.”
The Company will report fourth quarter and full year 2002 earnings on February 13, 2003.
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