According to Reuters, W.R. Berkley Corp. reported Feb. 5 that it will claim a loss in the fourth quarter as it takes charges to add reserves related to loss-making contracts, along with its exposure to both Enron Corp. and problems in Argentina. The company is planning on a fourth-quarter net loss of approximately $2.05 per share. Not counting discontinued businesses, realized investment losses and restructuring charges, the company anticipates an operating loss of around 50 cents per share.
Plans call for increasing reserves by $34 million following tax for its discontinued alternative markets reinsurance business – mainly reinsuring companies that self-insured their workers’ compensation. The company also plans to increase its reserves by $21 million related to its treaty reinsurance business.
Berkley reiterated its plans to take an after-tax charge of $12 million for anticipated losses on surety bonds related to Enron’s bankruptcy. It is also planning for a charge of $7 million to write down the value of investments that are held by an Argentine subsidiary.
Topics Carriers Profit Loss
Was this article valuable?
Here are more articles you may enjoy.
Storm Austen Will Be Stronger Than Forecast Along UK Coasts 
World’s Largest Retirement Community Set to Borrow $180 Million for More Homes 
Fisherman Killed by 12-Foot Alligator at Central Florida Lake 
KCC Says Isaias Insured Losses to Be $3 Billion; AM Best Calls Storm an Earnings Event 
