DRAGS DOWN NET INCOMENEW YORK - TIG Holdings Inc., was forced to take a $145 million charge to boost reinsurance reserves in the fourth quarter, causing a $62.7 million net loss last year. The 1996 fourth quarter had a $38.9 million net gain.

Fourth-quarter revenue was also brought down to $440.3 million from $451.8 million in the 1996 period. Earned premium was down to $374 million from $377 million in the quarter.

Jon Rotenstreich, TIG's chairman and chief executive, said a fourth-quarter analysis of its TIG Re's loss reserves found a need for an additional $220 million in reserves, of which reinsurance will provide $75 million. This contradicted a second-quarter study that found reserving adequate.

He said the parent TIG will also contribute $70 million to TIG Re's surplus, boosting it to $508 million.

''While we believe TIG Re is well-capitalized following the reserve charge, the contribution by TIG Holdings of $70 million is further evidence of our commitment to TIG Re,'' he said.

For the full year, net income was down to $52.3 million from $79 million for 1996. Total revenue was unchanged at $1.8 billion. Earned premiums for the year were the same at $1.5 billion.

Earned premiums declined to $374 million from $377 million for the fourth quarter of 1996. Full-year earned premiums stayed unchanged at $1.5 billion.

The effect of the charge was also seen on the combined ratio, which measures the percentage of premium spent on claims and expenses. The fourth-quarter combined ratio worsened to 141.5 percent from 103.1 percent because of a near doubling of loss adjustment expenses.

The 1997 combined ratio was higher at 111.5 percent from 1996's 105 percent.



STAMFORD, Conn. - Trenwick Group Inc., a reinsurance holding company, said consolidated net income for the fourth-quarter rose to $9.1 million from $8.8 million in the 1996 period.

Year-end net income also rose, to $35.3 million from $33.9 million in 1996.

However, total revenue was down for the quarter to $58.2 million from $66.1 million in the last three months of 1996 because of a decrease in earned premiums.

Year-end total revenue was down to $241 million from $253 million in 1996. The company took a $1 million loss on debt redemption during the year.

Earned premiums in the quarter dropped to $45.4 million from $55 million in the 1996 period. Year-end earned premiums were down to $190.2 million in 1997 from $211.1 million the previous year.

The combined ratio of subsidiary Trenwick America Re's underwriting decreased to 95.3 percent in the 1997 quarter from 98.2 percent. The year-end combined ratio rose to 95.9 percent from 95.7 percent in 1996.