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January 05, 2005
Ace to report asbestos reserves
Big charge may knock insurance stocks, analysts say
Ace Ltd., one of the largest U.S. property and
casualty insurers, is set to publish a report on its asbestos reserves
late Wednesday that will be watched by analysts, investors and rivals
monitoring the firm's financial strength. Decades after the fire-resistant, construction material was found to
increase the chances of lung cancer and other illnesses, billions of
dollars in claims are still an albatross around the necks of insurers
such as Ace and St. Paul Travelers.
Based on studies by the company, an independent actuary and the Pennsylvania Department of Insurance, Ace may unveil an after-tax charge of about $500 million, to bolster its current $2.7 billion of asbestos reserves, Jay Gelb, an analyst at Prudential Equity Group estimated.
Ace to report asbestos reserves
Big charge may knock insurance stocks, analysts say
Posted by Tom Troceen