Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (9783)	3/5/1999 2:04:00 PM
From: AlienTech	Respond to of 43080

Hey time to short Warren Buffet? =Delphi Stk Dn -2: Goldman Cites Uncertainty, Litigation By Anne Colden NEW YORK (Dow Jones)--Shares of Delphi Financial Group Inc. (DFG) fell 14% Friday after Goldman Sachs & Co. downgraded the stock. Delphi's stock has been hit hard in the past week since news surfaced concerning business at its Unicover Managers Inc. unit. Unicover managed a pool of reinsurers who agreed to accept a portion of the risk on workers compensation insurance. Last week one of the reinsurers, Cologne Life Reinsurance Co., a unit of Berkshire Hathaway Inc. (BRKA), said it would take a charge of $275 million to cover losses on the business. Other reinsurers in the pool have said they don't expect such losses or haven't yet quantified them. Goldman analyst Elizabeth Werner wouldn't comment on the downgrade, but industry sources said she made the change based on uncertainty surrounding Unicover's business prospects and the potential for ongoing litigation. American International Group Inc. (AIG) has sued Unicover and ReliaStar Life Insurance Co., a unit of ReliaStar Financial Corp. (RLR), claiming breach of contract over the workers' compensation business. A spokesman for Delphi didn't immediately return a call seeking comment. In a note issued Thursday, Standard & Poor's ratings group said it was evaluating the implications of the reinsurance coverage originated by Unicover. S&P said it was "seeking to clarify the potential exposures for each member of the pool, based on the structure of their reinsurance agreements." Brean Murray & Co. analyst Walter Fitzgerald said Unicover has reinsurance contracts in place for the next year or two, and that Delphi is confident it will meet analysts' consensus earnings estimates for 1999, which, according to First Call Corp., is $4.61 a share. Fitzgerald agreed that if reinsurers refuse to sign up with Unicover in the future, it has a problem. "It's important for Unicover, if it's to grow, to have a good relationship with reinsurers around the world." At the moment, however, Fitzgerald believes Delphi's shares are "incredibly attractive." Delphi's NYSE-listed shares were recently down 5 1/2, or 13.6%, to 34 7/8, on volume of 406,000, compared with average daily volume of 99,540. - Anne Colden; 201-938-5299 (END) DOW JONES NEWS 03-05-99 01:12 PM