ST. PAUL EXPECTS STORM
LOSSES OF $155 MILLIONST. PAUL, Minn. - St. Paul Cos. said that widespread storms in the second quarter are expected to cost the company about $155 million in incurred losses.
That total includes the $70 million in losses previously disclosed in company announcements in May and June.
The losses occurred mainly in the company's primary insurance operations and reflect the combined results of USF&G Corp. and St. Paul Cos., which merged in April 1998.
''This is our worst quarter of catastrophe losses since Hurricane Andrew struck the Florida coast in 1992,'' said Douglas W. Leatherdale, chairman and chief executive. ''Unlike Hurricane Andrew, however, these losses stemmed from 16 separate storms.
''For the first half of 1998, our catastrophe losses totaled approximately $200 million pretax, compared with $66 million in the first half of 1997.''
The wind and hail storms and tornadoes occurred chiefly in the Midwest and Southeast.
JAPANESE NONLIFE INDUSTRY
CHOOSY ABOUT AGENTS
TOKYO - The number of sales agents used by the top five Japanese nonlife insurance companies has shrunk by 9,200 over the past year, according to industry data made available Thursday, Kyodo News Service reported.
The five majors had a total of 309,900 agents at the end of fiscal 1997, down from 319,100 a year earlier.
The five are Tokio Marine and Fire Insurance Co., Yasuda Fire and Marine Insurance Co., Mitsui Marine and Fire Insurance Co., Sumitomo Marine and Fire Insurance Co. and Nippon Fire and Marine Insurance Co.
The downsizing has become necessary due to the liberalization of insurance premiums, effective this month, which has prompted insurers to boost cost efficiency and employ agents with expertise on new insurance products.
Insurers have also become more selective about agents, as 80 percent of insurance contracts come from 20 percent of the agents.
EVEREST RE BUYS COMP
FIRMS IN TEXAS, ALABAMA
LIBERTY CORNER, N.J. - Everest Re Group has acquired the business of Workcare Inc. and Workcare Southeast Inc., effective July 1, 1998.
Workcare, of Houston, serves Texas, and Workcare Southeast, of Birmingham, serves Alabama. Both specialize in workers compensation programs written primarily by Everest Re, which includes Everest National Insurance Co., a subsidiary of Everest Reinsurance Holdings Inc.
The employees and assets of Workcare and Workcare Southeast will be transferred to new agencies that the group will form in the two states.
These acquisitions reflect Everest National's interest in acquiring or investing in select agencies with a demonstrated ability to produce business consistent with Everest National's financial objectives.
HAZLETON, Pa. - Northeast Pennsylvania Financial Corp., the holding company of First Federal Bank, has purchased Abstractors Inc., a title insurance agency in Hazleton, Pa.
Abstractors Inc. performs title searches, issues title insurance and conducts loan closings.
Don J. Elko, president, and his staff will continue to serve the greater Hazleton area in the same capacity.
E. Lee Beard, president and chief executive for Northeast Pennsylvania Financial, said, ''NEP is acquiring this title agency to diversify its product mix and enhance its revenue stream.
''First Federal Bank mortgage customers will now have the option of using Abstractors Inc. to expedite their mortgage processing needs.''