Universal American to take $26.7 charge
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- March
- 17
Universal American Corp. will reduce the value of some of its sub-prime holdings by $26.7 million to account for the reduced value of the assets, which has been revised downward to their worth as of Dec. 31.
The Rye Brook-based company took the action, it said today, in agreement with its auditors, after the assets were determined to be overvalued.
The after-tax impairment was shown as an unrealized loss in the preliminary balance sheet data that Universal American presented on Feb. 19 along with its earnings release, it said.
The majority of Universal American’s subprime holdings “have been placed on negative credit watch by rating agencies,” the company said in a statement.
The company said it continues to review the estimated fair value of the securities, believing that their value will further decrease in the first quarter.
Universal American said it believes that it “will recover principal and interest greater than the market prices currently indicate.”
This entry was posted
on Monday, March 17th, 2008 at 5:32 pm by David Schepp.
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