Printer Friendly

ENHANCE GROUP TO TAKE RESERVE IN FIRST QUARTER; SEES NO CHANGE IN PROJECTED EARNINGS FOR YEAR

 ENHANCE GROUP TO TAKE RESERVE IN FIRST QUARTER;
 SEES NO CHANGE IN PROJECTED EARNINGS FOR YEAR
 NEW YORK, April 20 /PRNewswire/ -- Enhance Financial Services Group, Inc. (NYSE: EFS) today announced that it has established a loss reserve of approximately $3.8 million, to be taken in the first quarter, for a financial guaranty it provided as a reinsurer of a commercial real estate project. The reserve is being established following notification from the monoline financial guaranty insurer to which Enhance Group provided reinsurance. Enhance Group said that total par amount of its exposure in the transaction is $23 million. Enhance Group further stated the reserve reflects all anticipated claim payments for this particular transaction. To date, Enhance Group has paid no claims on the transaction.
 Enhance Group stated due to savings on profit commissions associated with this transaction and other unrelated favorable developments in its loss reserve changes on earnings for the quarter would be approximately $3 million.
 Enhance Group also stated that its first quarter earnings would benefit from certain non-recurring items that are expected to more than offset the earnings impact of the loss reserve changes.
 Enhance Group also said, "In our business claims do not occur with regularity. In general, Enhance's internal projections and those made by securities analysts estimate claim costs based on Enhance Group's average loss ratios. The impact of these pre-tax reserve changes to be reported in the first quarter will not by themselves have a material adverse impact on projected earnings for the year."
 Enhance Financial Services Group Inc. is engaged in financial guaranty reinsurance and related activities, and has three wholly owned subsidiaries: Enhance Reinsurance Company, a financial guaranty reinsurer rated AAA by Standard & Poor's and Duff & Phelps; Asset Guaranty Reinsurance Company, a financial guaranty insurance company rated AAA by Duff & Phelps; and a Guaranty Risk Services, an adviser on credit-enhanced securitized real estate transactions.
 -0- 4/20/92
 /CONTACT: Sheila Brody of Enhance Group, 212-983-3100/
 (EFS) CO: Enhance Financial Services Group Inc. ST: New York IN: FIN SU:


KD-SM -- NY079 -- 0218 04/20/92 16:29 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 20, 1992
Words:346
Previous Article:FEDERAL HOME LOAN BANK OF NEW YORK FORECASTS NEW YORK-NEW JERSEY ECONOMIES FOR 1992-1993
Next Article:BRITISH AIRWAYS TO HOLD NEWS BRIEFING IN PITTSBURGH


Related Articles
LUKENS ORDERS REBOUND FOLLOWING STRIKE
FLEET FINANCIAL GROUP REPORTS FIRST QUARTER EARNINGS OF $50 MILLION; STOCKHOLDERS APPROVE NAME CHANGE
ENHANCE FINANCIAL SERVICES GROUP REPORTS FIRST QUARTER EARNINGS
AMAX REPORTS SECOND QUARTER RESULTS
ENHANCE FINANCIAL SERVICES GROUP REPORTS SECOND QUARTER INCOME UP 32 PERCENT
UTILICORP REVISES AQUILA ENERGY STRATEGY, ADOPTS FULL COST ACCOUNTING, PROJECTS LOWER 3Q EARNINGS, CITES DIVIDEND MAINTENANCE, '93 IMPROVEMENT
ENHANCE FINANCIAL SERVICES GROUP REPORTS THIRD QUARTER INCOME UP 34 PERCENT
HARSCO CORPORATION REPORTS RECORD NET INCOME ON DECREASED SALES FOR FIRST QUARTER

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters