US-based Odyssey Re expects to take an after tax charge of $19.5m (£13.5m) in the fourth quarter of 2001, as it ups its provision for losses from its exposure to Enron's bankruptcy and from the September attacks on the US.
US-based Odyssey Re expects to take an after tax charge of $19.5m (£13.5m) in the fourth quarter of 2001, as it ups its provision for losses from its exposure to Enron's bankruptcy and from the 11 September terrorist attacks on the US.
The property and casualty reinsurer has increased its estimate of pre-tax loss provisions related to the 11 September terrorist attacks to $15m (£10.4m).
Odyssey Re, which is owned by Canadian group Fairfax Financial, said pre-tax provisions for Enron, net of reinsurance, would be $15m. This includes coverages for surety, directors' and officers' liability and other professional liabilities.
Odyssey Re has no exposure to Enron through its investment portfolio.
The company said the 11 September-related provision represented less than 10% of its previous estimate and was intended to ensure that all costs of the attack were accounted for in 2001.
In September, Odyssey estimated its after-tax losses from the attacks at approximately $55m (£38.1m).
The company reported a net loss of $41.9m (£29.2m) for the third quarter of 2001, compared with a net profit of $14.6m (£10.2m) for the same period in 2000.
