These additional provisions for a total of $117.3 million recorded in the second half of this year are the result of a loss reserve analysis conducted by Converium North America.

"I think with these steps, both in the third and fourth quarter, Converium has addressed the issue relating to the 1997-to-2000 underwriting years?," said Dirk Lohmann, chief executive officer of the Zurich-based Converium.

"?We are convinced that we won't disturb the 2003 earnings by additional adverse development coming out of [the late 1990s in] North America," said Martin Kauer, chief financial officer for Converium.

"We expect to have a very strong fourth quarter from our traditional reinsurance business and our specialty aviation business, which should more than offset these provisions?," Mr. Lohmann added.

The 2002 calendar year result, he said, is expected to be substantially better than the result as of nine months, which was $26 million after tax net income.

The reserve strengthening is predominantly related to commercial umbrella business, the miscellaneous casualty book (both on a proportional and non-proportional basis), the medical errors and omissions area, and commercial auto, Mr. Lohmann said.

"In addition, in our studies, we looked very closely at our workers' compensation portfolio, which on the whole was adequately reserved, and identified some deficiencies in the non-proportional area and some redundancies in the proportional area," he said.