INSURANCE BRIEFS

INSURANCE BRIEFS

CONTINENTAL AND TOKIO

SIGN AGREEMENTContinental Insurance signed a letter of agreement recently with Japan-based Tokio Marine & Fire insurance company to expand their long- standing relationship.

In support of their respective multinational activities, Continental will provide Tokio Marine with services in the U.S. and Canada, including loss control, claims, asset management, and reinsurance. Tokio Marine will provide similar services for Continental in Japan.

S&P GIVES AA RATING

TO GERMAN REINSURER

NEW YORK - Standard and Poor's assigned an AA claims-paying ability rating to Germany-based Eisen und Stahl Reinsurance Co.

The company is 50.6 percent-owned by Haftplichtverband der Deutschen Industrie Versicherungsverein auf Gegenseitigkeit and is a sister company of AAA-rated Hannover Reinsurance Co.

According to S&P, the rating reflects the strong capitalization, conservative asset structure and loss reserve position and expectations of a favorable operating performance, partly enhanced by the joint operating relationship with Hannover.

UNUM SELLS UNIT

TO CENTURY LIFE

PORTLAND, Maine - UNUM Corp. sold National Employers' Life Assurance Co., a Dorking, England, pension and mortgage company, to Century Life, of London, according to a prepared statement.

The sale, effective Dec. 31, 1991, was made for an undisclosed amount.

UNUM will retain its United Kingdom disability insurance operation, UNUM Ltd., formerly called N.E.L. Permanent Health Insurances Ltd., according to the statement.

"The sale results in a more suitable partner for N.E.L., and at the same time, allows UNUM to continue its focus on pursuit of worldwide leadership in disability insurance products," said W. Francis Brennan, UNUM executive vice president.

UNITED, OTHERS SETTLE

SUIT OVER IOWA CRASH

CHICAGO - A federal lawsuit stemming from a 1989 United Airlines crash in Sioux City, Iowa, was settled in a multimillion-dollar agreement Monday just before the case was about to go to trial, lawyers said.

The terms of the settlement were not disclosed, but lawyers said United and other defendants had agreed to pay nine plaintiffs "many millions of

dollars."

United Flight 232 crash-landed in flames in July 1989 after a metal disk in the rear engine of the DC-10 broke in flight, spraying shrapnel that cut hydraulic lines and left the crew without normal steering mechanisms. The accident killed 112 people and injured 184.

The case was brought by seven survivors of the crash and families of two of the dead against United; McDonnell Douglas Corp., which made the plane; General Electric Co., which made the engines; and Aluminum Co. of America, which helped make the engine part that failed.

'SURVIVOR SICKNESS'

FOLLOWS CORPORATE CUTS

LOS ANGELES - Although survivors of corporate downsizings keep their jobs, they suffer "layoff survivor sickness," according to psychologist Mitchell L. Marks, a principal in the Los Angeles office of international human resources consultants William M. Mercer Inc.

As the recession continues and employers pare away tens of thousands of jobs, Dr. Marks finds clear signs of survivor sickness afflicting those spared by the cuts. Guilt and depression are symptoms of layoff survivor sickness among those who remain after the downsizing.

''Survivors feel guilty for having been spared, just like siblings who survive an accident in which a brother or sister has been killed," Dr. Marks said.