INSURANCE BRIEFS

INSURANCE BRIEFS

PROVIDENT LIFE RATINGS

PLACED UNDER REVIEWOLDWICK, N.J. - A.M. Best Co. placed the "A+" rating of Provident Life and Accident Insurance Co. under review following the company's announcement it would increase reserves for its individual disability business.

Provident Life officials said they would add $275 million to reserves and take an after-tax charge of the same amount to third-quarter earnings. The reserve strengthening reflects expected losses to Provident Life's individual disability business written between 1983 and 1989.

Officials attributed one-half of the third-quarter charge to a decline in interest rates, which had an adverse affect on Provident Life's earnings. The other half of the charge relates to morbidity trends, company officials said.

RETIRED A&A EXECUTIVE

HENRY BARTHOLOMAY DIES

Henry Bartholomay III, retired senior vice president and director of Alexander & Alexander Services, died Nov. 7 at his home in Vero Beach, Fla., after a prolonged illness. He was 69.

Mr. Bartholomay owned an insurance brokerage firm from 1946 to 1963, joining the international insurance brokerage firm's office in Chicago in 1962. He retired 20 years later but remained on the board until 1985.

"He was a doer and people knew that," his son, Charles, said. "He had a sense of doing for the community. He was always being asked to do things and he usually did them. He had a great pace and management ability. People sought his counsel. He was straight and objective, larger than life."

Survivors, besides his son and his brother, include his wife, Julia; another son, Henry; three daughters, Lucy, Julia Geer and Marian; and seven grandchildren.

GROUP SEEKS 23.2 PERCENT RISE

IN MO. COMP RATES

ST. LOUIS, Mo. - The National Council on Compensation Insurance has petitioned Missouri regulators for a 23.2 percent rate increase for the state's high-risk compensation pool, effective Jan. 1, 1994.

"The magnitude of the increase is directly attributable to the loss experience of those policyholders in the residual market," said Michael Taylor, director of government, consumer and industry affairs for NCCI.

Insurers spend nearly 15 percent of premiums collected in the voluntary market to fund losses in the residual market, a last resort for hard-to-insure employers, NCCI officials said.

Missouri insurers also face cost drivers such as unchecked medical benefits, delays in return to work by injured workers and inconsistent disability ratings, officials said.

TEXAS STORM DAMAGE

IS PUT AT $60 MILLION

RAHWAY, N.J. - Wind, hail, tornadoes and flooding that occurred in Texas Oct. 17-20 caused an estimated $60 million in insured property damage, said Gary R. Kerney, director of catastrophe services at Property Claim Services.

Businesses, dwellings, a mobile home park, an apartment complex were among those areas damaged or destroyed as tornadoes touched down in Del Rio, Texas. Damage in Odessa, Fort Worth and Midland were hit with hail accompanied by high winds, Mr. Kerney said.

ST. PAUL UNIT JOINS

SURETY BOND PROGRAM

BEDMINSTER, N.J. - St. Paul/Seaboard, an underwriter of surety bonds in North America, has joined the U.S. Small Business Administration Preferred Surety Bond Guarantee Program.

The program authorizes qualified companies to issue surety bonds, which guarantee actions agreed to under contract, to smaller or disadvantaged contractors who may lack the financial requirements for the bonds, said George Thompson, the head of St. Paul/Seaboard, a subsidiary of insurer St. Paul Cos.

For each bond written under the program, the SBA provides a 70 percent guarantee to the surety bond underwriter, Mr. Thompson said. St. Paul/Seaboard will make the SBA-guaranteed bonds available in territories served by branch offices in Atlanta, Baltimore, Dallas, Minneapolis, Phoenix and Overland Park, Kan., he said. He said other territories are expected to be added to the program later.