Universal reports loss due to subprime crisis
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- May
- 7
Universal American Corp., the health and life insurer in Rye Brook reported last night it lost $46 million, or 50 cents a share, during the first quarter, largely because of impairments on its portfolio due to the subprime mortgage crisis.
The company said the loss includes $29.8 million from the subprime impairments.
During the first quarter of last year, the company had a profit of $4.4 million, or 7 cents a share.
The operating loss for the quarter was $16.7 million, or 18 cents a share, compared with an operating profit of $3.1 million, or 5 cents a share, during the first quarter of last year.
Revenues rose 98.1 percent to $1.2 billion. Not counting revenues from the MemberHealth business that Universal bought last September, revenues were up 24 percent.
“The results of the first quarter were mixed but contained encouraging indicators for the balance of 2008 and beyond, Richard Barasch, the company’s chairman and chief executive, said in a statement.
The company said in March that it would reduce the value of some of its subprime holdings to account for the reduced value of the assets. Universal said it took the action after consulting with its auditors.
This entry was posted
on Wednesday, May 7th, 2008 at 8:45 am by Allan Drury.
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Category: Earnings season
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