EARNINGS : First Executive Reports Loss for Quarter

First Executive Corp. reported a first-quarter net loss of $44.1 million, due largely to the company’s recently announced plan to sell its New York insurance subsidiary.

The loss, the company’s first quarterly setback in at least a decade, contrasted with a profit of $35.6 million in the year-ago quarter.

The Beverly Hills-based insurance company--best known for its controversial practice of buying large amounts of high-yield “junk bonds”--said the loss reflected a $150-million charge due to the planned sale of its subsidiary, Executive Life Insurance Co. of New York, to a investor group.

The proposed sale, announced May 3 but still subject to a number of regulatory and other approvals, was triggered in part by the parent firm’s desire to reduce strain on its capital surplus. Price for the unit will be at least $400 million.

First Executive also reported a one-time $55.8-million gain from the cumulative effect of new accounting standards required for insurance companies.

Excluding these one-time factors, after-tax operating income in the first quarter rose to $50 million from $35.6 million in the 1988 quarter. The company attributed the rise to general growth in its life insurance business.

Revenue increased to $560.1 million from $543.8 million in the year-ago period.