DFG
this may not be a deep six yet ....
for heavens sake why didn't they release this before the close?
Friday March 5, 6:10 pm Eastern Time
Delphi Financial comments on active stock
WILMINGTON, Del., March 5 (Reuters) - Delphi Financial Group Inc. said Friday it believes the recent volatility in its stock is related to misconceptions about its recently acquired Unicover Managers division.
Unicover, acquired by Delphi in November, is a reinsurance underwriting manager specializing in alternative workers' compensation coverage.
Earlier this week, Delphi declined the New York Stock Exchange's request to comment on its stock activity.
Delphi stock closed down 12-7/8 at 27-1/2 on the NYSE on Friday, below its 52-week low of 31-5/8.
''The general notion seems to be that, while the pools are profitable, their insurance retrocessionaires anticipate sizeable losses,'' Delphi Financial said in a statement. ''We recognize that adverse publicity has hurt Unicover, but we do not believe there are material financial issues for Delphi.''
Delphi paid $23 million down to purchase Unicover and payments to the Unicover shareholders are contingent on post-closing cash flow over 4-1/4 years ending 2002. If the cash flow were not there, Delphi would not pay, the company said.
Last week German reinsurer Cologne Re said it would take a $275 million charge to cover potential losses on U.S. workers compensation business written through a Lond market underwriting facility. |
