The Price Put on Fremont’s Shaky Tail By Robert Warne - March 6, 2003
Fremont General has given up any hope that it might be able to salvage its financial stake in its discontinued Fremont Compensation tail.
The company announced Feb. 27 that any hopes of a last ditch effort to milk it’s $45 million investment out of it’s old work comp business was not realistic.
Company officials drew this conclusion after a 2002 actuarial evaluation cast a bright light on the dark financial future ahead for the Fremont run-off.
Also through part of its agreement with the California Department of Insurance, Fremont is on the hook for an estimated $79 million chunk of change. This amount is made up of mandatory and contingent capitol contributions, which must be paid yearly for the next six years.
So based on the run-off’s extensive wear and tear, the company has decided it would be better to accept a worst-case scenario $119 million hit now than later.
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA
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