Fremont General Reports a $4.7-Million Net Loss

Los Angeles-based Fremont General reported a net loss of $4.7 million for the third quarter, compared to earnings of $29.6 million for the same quarter last year.

Revenue rose nearly 53% to $162.7 million from $106.4 million in the comparable quarter of 1984. Profit in the 1984 quarter included a $48.96-million extraordinary gain from the sale of Maxicare Health Plans.

The insurance and financial-services holding company reported a loss from continuing operations of $9.95 million during the quarter, compared to a $9.04-million loss in the year-ago quarter. The period’s underwriting loss was $34.3 million, compared to $22.97 million a year ago.

But Fremont’s cost of doing business declined slightly in the most recent quarter. The company said that for every $100 taken in, it paid out $128 on policies during the third quarter, compared to $131 in the third quarter of last year.

The company said it expects an improvement in future quarters because of higher rates in effect now for reinsurance and because policies in Fremont’s discontinued general property-casualty insurance operation should be worked off in the next three quarters.

For the nine months ended Sept. 30, Fremont had earnings of $110.9 million, compared to $19.7 million in the same period last year. The 1985 results included a gain of $125.8 million from the sale of Maxicare, compared to a $52.97-million gain from the sale in the first nine months of 1984.

Revenue for the nine-months rose 43.7% to $431.6 million.