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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.

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Ace to report asbestos reserves
Big charge may knock insurance stocks, analysts say

Posted by Tom Troceen