TIG Holdings Reports $29.5-Million Profit

TIG Holdings Inc., the New York-based holding company for property and casualty insurer Transamerica Insurance Group in Woodland Hills, reported a $29.5-million profit for the third quarter that ended Sept. 30.

The company also said its former parent, financial services giant Transamerica Corp., will sell its remaining 27% interest in TIG in a public offering of 17.3 million common shares. TIG was spun off from Transamerica in an initial public stock offering last spring.

TIG’s third-quarter profit was up slightly from the $27.7 million it earned in the year-earlier quarter. The company’s net premiums written, the rough equivalent of revenues, rose 6%, to $418 million from $396 million.

For the nine months, TIG’s net loss widened to $150.8 million from $6.4 million a year before. Its net premiums written were essentially flat at $1.2 billion.

The latest nine-month figures included a restructuring charge of $73 million for expenses related to staff reductions, the planned relocation of the Woodland Hills operation to the Dallas-Forth Worth area next spring, and the cost of terminating leases at some field offices. TIG said the results also included $6.9 million in costs related to laid-off workers and its initial public offering.

In addition, TIG’s nine-month results included a $65.6 million provision to cover future losses and write-offs stemming from the company’s decision to abandon certain lines of business.

Another $17 million in refunds to auto insurance policyholders was paid by the company during the period as part of its settlement with the California Department of Insurance over Proposition 103.