Transamerica Insurance Reports Surge in Profit

Transamerica Insurance Group in Woodland Hills reported a sharp increase in profit in its fourth quarter that ended Dec. 31, partly because a change in a reinsurance agreement resulted in an after-tax gain of $13 million. However, half of the gain was used to bolster the reserves it sets aside in case of future losses.

The company said its fourth-quarter net income was $19.8 million, up 46% from $13.5 million a year earlier. Its revenue edged up 2% to $550 million from $541 million.

In all of 1991, Transamerica’s profit rose 3% to $62.7 million from $61.1 million in 1990. Its revenue totaled $2.15 billion, up from $2.13 billion.

Transamerica said its reinsurance, commercial property-liability, personal and workers’ compensation operations all reported gains in operating income in 1991. But it suffered higher-than-expected losses in entertainment insurance, from discontinued operations and the Oakland Hills fire.