Bermuda-based ESG Re Limited reported an overall net loss of $3.4 million, or $0.31 per share for the quarter ended September 30, 2003.
The company reported total revenues for the period of $22.3 million, including net premiums earned of $21.3 million, and an underwriting profit for the quarter of $7.4 million “before accounting for the increase in legal reserve of $5.9 million.” Gross written premiums for the quarter were $44.2 million
ESG Re’s bulletin stressed that the $5.9 million had been set aside to cover “an increase in the legal reserve to cover exposures in relation to treaties under arbitration and investigation.” The amount was included in the $11.8 million figure the company gave for its operational expenses for the quarter. Other operating expenses amounted to $5.9 million in line with budgeted costs.
Assessing the results, CEO Alasdair Davis stated: “We successfully wrote new business of $38.0 million in the reinsurance segment in the quarter and we expect to continue to write further amounts of reinsurance business in the fourth quarter of the year. Furthermore, we continue to grow the direct segment where premiums written for the nine months ended September 30, 2003 were $24.7 million compared to $18.9 million for the same period last year. We have also settled the CNA Re litigation matter which removes a significant uncertainty from the Balance Sheet”.
The full report is available on the company’s website at: www.esg-world.com.
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