Vesta Group Reports $6M Loss from Storms
Alabama-based Vesta Insurance Group announced a $6.2 million loss from catastrophes for the second quarter of 2002.
Vesta’s net operating loss is expected to be between $0.02 and $0.05 per diluted share. Vesta incurred approximately $4.4 million in losses from tornadoes and thunderstorms in late April that caused approximately $700 million in industry losses in 17 Midwest and Mid-Atlantic States, according to the Insurance Services Office Inc.
Vesta also announced that its arbitration with F&G Re has been completed, and that Vesta has been awarded and collected $16.4 million in cash and will take a one-time $13.6 million pre-tax, non-operating charge against GAAP earnings in the second quarter. The resolution will have a minimal impact on Vesta’s statutory capital and surplus, reducing it by $7.6 million.
Vesta also announces that its exposure to WorldCom bonds is limited to a $1.0 million pre-tax realized loss in the second quarter.
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