APCO Automobile Protection Company Message Board

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Non-Tech : APCO Automobile Protection Company

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To: JoeinIowa who wrote (2878)	10/25/1998 9:51:00 PM
From: Amigo Mike	Read Replies (2) of 3351

Jose, Here is some clarification for you and the rest of the board. APCO recorded a charge of $875K in 1996 to cover claims that Everest refused to honor. "In July 1998, the Company settled its lawsuit against Everest Reinsurance Company (formerly Prudential Reinsurance Company) under confidential terms. The Company expects to pay claims under the various assumption of liability endorsements through the third quarter of 1999 and believes the reserves recorded for this liability are adequate." From the latest 10Q. THe Amigos have not been able to squeeze out any data as too the terms of the settlement. Obviously APCO feels they set aside enough cash to cover the claims. We know they already paid out over $225K. The question now is ...... How much will be left over after all claims are paid ??? Also, the company says it's possible to be paying from its reserve through the 3rd qtr FY99. So there may not be any recovery til then. This is the main reason the Amigos will stick to the "straight-up" minimum .16 number. The possibility is there for the one time gain but ...... we'll have to wait and see. Amigo Mike

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