USF&G loses $25 million Insurer says decline due to pullout from unprofitable states.

October 30, 1991

USF&G Corp., the Baltimore-based insurance company, lost $25 million in the third quarter, about two-thirds more than the 1990 third-quarter loss of $15 million.

On a per share basis, the loss was double -- 44 cents compared to 22 cents.

Revenues for the third quarter were $980 million, down 14 percent from revenues of $1.12 billion in the previous third quarter.

The company said the third-quarter results were primarily due to a 15 per cent decline in premiums resulting from the company's pullout from states where it says its business is unprofitable.

For the first nine months, USF&G lost $136 million, or $1.91 per share, compared with net income of $41 million, or 35 cents per share, in the same period in 1990. Revenues for the nine months was $3.1 billion, compared to $3.4 billion a year ago.

"While it is disappointing to report further losses in the quarter, we are pleased to see stability returning to our core property/casualty insurance business after the substantial restructuring process of the past three quarters." said Norman P. Blake Jr., chairman, president and chief executive officer. "With the majority of the financial rebuilding phase of our strategy behind us, we are now focused on returning our insurance businesses to profitability -- a process that we knew would need time to take hold.

"Cost control efforts have resulted in a reduction in controllable expenses in the third quarter of 1991, as compared with the same period in 1990, Blake said. "Efforts to improve our primary property casualty underwriting results include a strategy of strong product mix management and strict pricing disciplines."

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