INSURANCE
Unico Says Riot Claims Won’t Affect Solvency: Unico American Corp. of Woodland Hills said riot-related claims against its Crusader Insurance Co. subsidiary will total about $20 million, which will reduce Unico’s first-quarter net income by about $10 million but not affect its solvency. Analyst Michael LeConey of RAS Securities in New York said the losses will “pretty much wipe out earnings for this year,” but he said Unico is “incredibly well-capitalized” and should bounce back. Crusader was one of the insurers hardest hit by the burning and looting. About half of the $20 million in claims will be covered by reinsurance, Unico said. Unico’s stock closed at $3.375, unchanged, in over-the-counter trading.
For the record:
12:00 a.m. May 13, 1992 For the Record
Los Angeles Times Wednesday May 13, 1992 Home Edition Business Part D Page 2 Column 4 Financial Desk 2 inches; 49 words Type of Material: Correction
Unico American--A brief in Tuesday’s editions said that about half of the $20 million in riot-related claims against Unico American Corp.’s Crusader Insurance Co. subsidiary would be covered by reinsurance. In fact, reinsurance covers about $5 million of the claims. After taxes, the effect on net income is a loss of about $10 million, as reported.
