DUFF & PHELPS ISSUES CLARIFICATION/CORRECTION THE ORION CAPITAL GROUP CLAIMS PAYING ABILITY RATED 'A+'
CHICAGO, May 21 /PRNewswire/ -- In a press release dated May 19, 1993, (PRNewswire No. NY055) Duff & Phelps Credit Rating Co. stated in the seventh paragraph: "The Orion Group has put in place practices to reduce the potential for adverse reserve development in future years, and while it is perceived that over time these practices will reduce the amount of adverse loss reserve development, in the near term moderate upward development in loss and loss adjustment reserves is anticipated." To clarify; while Duff & Phelps expects moderate upward development in loss reserves from prior accident years to continue in the near term, the level of development is anticipated to continue its decline from historical levels. Accordingly, the impact on the Orion Group's calendar year operating results from upward loss reserve development of prior accident years is anticipated to continue its decline from historical levels. In the eighth paragraph it was stated: "Common and preferred stocks were 11.0 percent and 9.9 percent of unaffiliated investments at year end 1992. The combined stock portfolios represent 62.3 percent of policyholders' surplus. Since changes in the value of common and preferred stocks flow directly through to surplus for statutory financial reporting, the high proportion of stocks to policyholders' surplus may result in volatility in reported surplus." Of the investments held in preferred stocks by the Orion Group, 47.9 percent are subject to a mandatory sinking fund and, therefore, carried at cost (as opposed to market) for statutory financial reporting. As a result the combined total of common stock and non-sinking fund preferred stock investments are 48.2 percent of policyholders' surplus, as opposed to the 62.3 percent in the original press release. -0- 5/21/93 /CONTACT: Timothy A. Bienek of Duff & Phelps Credit Rating Co., 312-368-3192/ (OC)
CO: Orion Capital Group ST: New York IN: FIN SU: RTG
SH -- NY047 -- 1284 05/21/93 15:19 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||May 21, 1993|
|Previous Article:||ROASTERS' SENIOR EXECUTIVE PASSES AWAY|
|Next Article:||CO-FOUNDER OF INTEGRATED HEALTH SERVICES TO FORM LONG-TERM CARE COMPANY IN UNITED KINGDOM - IHS HAS MINORITY INTEREST|