Pac Rim Revises Results in Quarter to Show Loss

Pac Rim Holding Corp., citing a rise in workers’ compensation claims because of the weak economy, revised its fourth-quarter results in 1991 to show a $1.94-million loss instead of the $2.2-million profit it previously reported.

The Encino-based workers’ compensation insurer said the loss resulted from its decision to add $6.4 million to its claims-loss reserves. The company’s fourth-quarter revenue, which was reported as $32.6 million when Pac Rim originally posted its results Feb. 13, was not changed.

Pac Rim also revised its full-year 1991 results to show a profit of $3.21 million, down 33% from $4.76 million in 1990. Pac Rim originally reported a $7.35-million profit for last year.

“The deepening recession in California has now reached our client base, which up until now has been quite recession-resistant,” Pac Rim President Stanley Braun said.

Pac Rim isn’t the only workers’ compensation insurer that’s hurting. CII Financial Inc., the Burbank-based parent of California Indemnity Insurance Co., earlier reported a fourth-quarter loss of $25.2 million because it had to establish a $20-million reserve for claims losses.