Allstate: $70 million of after-tax restructuring charges; $59 million pre-tax reserve for settlement of Georgia diminished-value class-action; $75 million pre-tax incurred losses related to mold claims in Texas; $57 million pre-tax reserve strengthening related to Encompass business; $49 million expense charge before taxes related to guaranty fund assessments.

American International Group: $57.2 million impact of surety losses related to Enron; $20.4 million provision for Northridge earthquake claims (arising from AIGs minority interest in 21st Century Insurance Group).

Argonaut: $7.3 million of costs for increasing allowance for doubtful accounts on reinsurance recoverables and premiums receivable; $7 million reserve strengthening for California workers compensation claims.

Berkshire-Hathaway: $800 million ($570 million after-tax) related to underreserving at General Re; $46 million arising from General Res Enron-related coverages; $143 million arising from large property losses on Gen Res international p-c business.

Chubb: $143 million from Enron surety bond losses

CNA: $125 million after-tax restructuring; $52 million after-tax Enron-related losses; $69 million after-tax charge to boost current year reserves of London-based commercial and marine operations; $160 million after-tax charge to strengthen prior-year reserves for CNAs London-based reinsurance operation.

Fairfax: Increase in Sept. 11 losses of C$48.3 million (Canadian dollars); provision for Odyssey Res Enron losses of C$23 million; adverse development of C$14.5 million for former Kingsmead syndicates; C$62.3 million in reinsurance premium related to reserve strengthening of European run-off operations.

GAINSCO: $20 million increase in ultimate claim liabilities; $13.4 million impairment of goodwill on a 1998 acquisition.

Harleysville: Guaranty fund assessments added 1.4 points to combined ratio.

Hartford: $11 million restructuring charge to exit from certain international operations; $39 million after-tax write-down of Enron securities

Markel: $70 million pre-tax expense charges and reserve strengthening for Markel International.

Mutual Risk Management: Increase in provisions for reserves and recoverables totaling $65 million.

Ohio Casualty: $26.8 million charge related to the transfer of its renewal obligations on New Jersey auto business to Proformance Insurance Company; $9.2 million reserves for asbestos; $1.5 million increase in expenses for exposure to guaranty fund assessments.

Philadelphia Consolidated: $1 million cost of guaranty fund assessments.

Progressive: $14.3 million for guaranty fund assessments.

SAFECO: $18 million of Enron-related surety losses; $8.1 million restructuring; $8.6 million write-off associated with U.K. subsidiary.

State Auto Financial: Reserve adjustment for Meridian Mutual acquisition added 14.5 points to fourth-quarter loss ratio.

The St. Paul Companies: $612 million in reserve strengthening, restructuring charges and goodwill writedown; $10 million in losses related to Enron.

Vesta Insurance Group: $4 million pre-tax charge to increase reserves and $2 million of unusual expenses related to insolvency of Reliance.

W.R. Berkley Corp.: $12 million after-tax charge for potential losses from Enron; $21.3 million after-tax reserve strengthening.

XL: Adverse prior-period development on U.S. companies, losses related to the bankruptcy of Enron, American Airlines Flight 587 losses and several large European property losses.

While reserve charges were far and away the largest component of aggregate disclosures made by these companies, rating agency A.M. Best in Oldwick, N.J., in a report released in early March, revealed that guaranty fund assessments related to the insolvency of Reliance Group will cost property-casualty insurers roughly $1.2 billion.

On the reserving front, Best representatives told National Underwriter in January that they expected $9.5 billion of adverse loss development in 2001 and $7.5 billion in 2002, bringing their estimated core (non-asbestos and environmental) reserve deficiency down from $40 billion to $23 billion for the industry.

In addition to the charges related to losses on surety, and directors and officers liability insurance policies written for Enron Corp., Best estimated, in a report published in February, that p-c insurers had $604 million of investment exposures tied to the energy giants collapse and an additional $52.4 million tied to the bankruptcy of retailer KMart.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, April 1, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.