California-based Fremont General Corporation reported net income of $15,999,000 for the third quarter of 2001. This was comprised of net income from continuing operations of $14,619,000 and an after tax gain on the extinguishment of debt of $1,380,000.
The company’s property and casualty insurance operations, which are primarily workers’ compensation insurance, recorded pre-tax income of $134,000 for the third quarter of 2001. The combined ratio was 138.3 percent for the third quarter of 2001. During the second quarter, the company’s workers’ compensation insurance operations finalized a fronting facility with “A” rated (by A. M. Best) affiliates of Clarendon Insurance Group.
The establishment of this fronting facility provides the company’s workers’ compensation insurance operations with the ability to issue new and renewal policies with an “A” rating. Since the inception of this facility, substantially all of the company’s workers’ compensation insurance premiums have been written under this program. As of Oct. 31, 2001, a total of $53.2 million in gross estimated annual premium was in force under the facility.
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