Converium issues profit warning on Q2 results
Converium has announced its second quarter results will fall short of expectations due to the emergence of higher than modeled US casualty loss primarily related to the underwriting years 1997 to 2001. Reserves for these lines of business, in particular umbrella, professional liability and Excess & Surplus Lines casualty, will be bolstered by up to US$ 400 million. This reserve action triggers net impairments of up to US$ 289 million of Deferred Tax Assets and US$ 94 million of Goodwill in the balance sheet of Converium Reinsurance (North America) Inc.
Dirk Lohmann, CEO, said: "I am personally leading a comprehensive review [of the US casualty business] with the assistance of our actuarial team and members of the newly created Underwriting TechnicalOnly users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
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