Reinsurer Nabs GAINSCO Assets

Texas-based GAINSCO Inc., a holding company with personal auto insurance agencies in Florida, announced that a non-affiliated reinsurer has taken possession of trust assets per a reserve reinsurance cover agreement with the company. GAINSCO does not expect the reinsurer action to have a material impact on shareholder equity or statutory policyholders’ surplus for the first quarter ended March 31. The reinsurer was entitled to take this action as a result of GAINSCO’s year-end 2001 results. Based upon balances as of Dec. 31, 2001, investments and funds held under reinsurance agreements would each be reduced by approximately $47.8 million. Provided the reinsurer continues to be responsible for reimbursing the company for claim payments covered under this agreement, GAINSCO’s reinsurance should not be affected.