Odyssey Takes Enron Charge
NU Online News Service, Jan. 15, 3:36 p.m. EST?Property-casualty insurer Odyssey Re Holdings Corp. in New York said yesterday it would take a $19.5 million after-tax charge for the fourth quarter, reflecting net losses arising from the Enron bankruptcy, and to provide for losses from the Sept. 11 terrorist attack.
Pre-tax provisions for Enron, net of reinsurance, will be $15 million, arising from surety, directors and officers liability and other professional liability coverages, OdysseyRe said. The company said it has no exposure to Enron through its investment portfolio.
Additional pre-tax provisions for the terrorist attack will also be $15 million, net of reinsurance. On a gross basis, the additional provisions amount to less than 10 percent of OdysseyRe's previously advised estimate, and are intended to ensure that all costs of the attack have been accounted for in 2001, the company said.
Odyssey Re said it has not tapped its aggregate excess-of-loss retrocessional coverage for any losses from the terrorist attack or Enron.
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