Brooklyn-based Allcity Insurance Company, a member of the Empire Group, announced third quarter net losses of $3.856 million, and a nine month loss of $18.913 million, but stated that the ongoing reorganization of the Empire Group and its plan for an orderly withdrawal from the market, if approved by the New York State Department of Insurance, would improve its position.
Effective March 1, 2001 Allcity, Empire Insurance Company and Centurion Insurance Company, collectively the “Empire Group,” ceased writing new policies, pursuant to an agreement with the NYSID. It also canceled or did not renew a number of commercial lines policies, which were taken over by Tower Insurance Co. of NY or Tower Risk Management under an agreement for the sale of the Empire Group’s renewal rights.
Allcity was hit with further losses as a result of the Sept. 11 attacks on the WTC. It estimates incurred net losses of around $800,000, “primarily relating to business interruption coverage.” It indicated that it was just now beginning to receive these claims, and that the loss estimates could change.
A report filed with the NYSID this month indicated reserve deficiencies for Allcity and the Empire Group. The company indicated that Empire has submitted a plan for remedying its surplus deficiency, and is in the process of a reorganization which it hopes will increase the surplus above statutory requirements.
Topics Profit Loss
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