Reliance Reports Greater Than Expected Losses

U.S. insurer Reliance Group Holdings has reported greater-than-expected first-quarter losses based on poor underwriting performance. The New York-based company has seen share prices plummet 86 percent over the last two years as concerns about its debt and exposure to the collapsed Unicover workers’ comp pool have arisen.

The company posted a first-quarter operating loss of $36.5 million compared with operating earnings of $11.4 million in the year-earlier quarter. Net profit for the quarter, including $182 million in realized capital gains from securities sales, was $145.5 million compared with a net loss of $15.5 million in the same quarter 1999. First quarter revenues rose to $1.02 billion, up 36 percent from $750 million for the year-earlier quarter.