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BRITISH-AMERICAN INSURANCE COMPANY ANNOUNCES THE COMPLETION OF AUDIT REVIEW OF BRITAM INSURANCE OPERATIONS

 BRITISH-AMERICAN INSURANCE COMPANY ANNOUNCES THE COMPLETION OF
 AUDIT REVIEW OF BRITAM INSURANCE OPERATIONS
 NASSAU, Bahamas, April 23 /PRNewswire/ -- British-American Insurance Company, Ltd. ("British-American"), announced today the completion of a review by its independent auditors, Price Waterhouse & Co., of the operations of Britam Insurance Brokers and Agents (Bahamas), Ltd. ("Britam"). Britam is a majority-owned subsidiary of British-American, and until recently had been managed by the minority owner of the subsidiary. British-American commissioned the study of the subsidiary earlier this year after a preliminary review of Britam's books by corporate officials indicated that its accounting records had been poorly maintained. The Price Waterhouse study concluded that the value of some of Britam's assets had been overstated, and that the value of some of its liabilities had been understated in reports to British- American. As a result of the review, British-American has determined that it will likely be required to take a substantial charge to its fiscal 1991 financial statements, which are currently being prepared. The size of the charge has not been determined. British-American expects that the charge, together with expenses incurred in connection with a reorganization of the company completed in 1991 and other extraordinary expenses, will exceed operating income for the year. British-American therefore expects to report an overall loss for the fiscal year ended Dec. 31, 1991.
 British-American has replaced the senior management of Britam and has caused Britam to sell all of its business to J.S. Johnson, Ltd., effective Feb. 1, 1992.
 British American Holdings Limited ("Holdings") owns 76 percent of British-American, and British-American's results are consolidated in the financial results of Holdings. Therefore, the charge relating to Britam will also affect the reported income of Holdings, and the charge together with the reorganization expenses and other extraordinary expenses of Holdings will more than offset the operating income of Holdings. Accordingly, Holdings is also expected to report a loss for the fiscal year ended Dec. 31, 1991.
 -0- 4/23/92
 /CONTACT: Judy Higgs, British-American Insurance Company, Ltd., 809-322-2694/ CO: British American Insurance Company, Ltd.; Britam Insurance Brokers
 and Agents (Bahamas), Ltd.; British American Holdings Limited ST: IN: INS SU:


JZ -- CH016 -- 1992 04/23/92 14:32 EDT
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Publication:PR Newswire
Date:Apr 23, 1992
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