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To: bcrafty who wrote (45375)	7/11/2002 4:38:08 PM
From: Paul Shread	Read Replies (2) \| Respond to of 209892

Their managed earnings are just part of the problem. They have a very complex cash flow statement and enough debt to get into trouble if the credit bubble ever pops. They're more of a financial than an industrial. Compare their cash flow statement to UTX's; night and day. That said, the market's sold off enough that they'll probably see good news tomorrow regardless, and I'll be miffed that I didn't go long. -g/ng

To: bcrafty who wrote (45375)	7/11/2002 4:38:13 PM
From: Logain Ablar	Respond to of 209892

If you believe Imletts letter to employees ask yourself why Employers Re is taking a $540M charge this quarter for under reserving on prior years business (in effect they under priced their business to compete and maintain market share) when the other major reinsurers strengthened their reserves late last year. This is all part of the managed earnings. Amazing how it coinsides with a favorable tax settlement where they release a reserve. Disclaimer - I think their accounting and internal auditing is the best in the world.