OTHER NEWS - March 12, 1993

Prudential May Sell Reinsurance Unit: Prudential Insurance Co. of America, the nation’s largest insurer, said it is considering the sale of its reinsurance unit. Prudential Reinsurance Co., the nation’s fifth-largest reinsurer, should attract investor interest as a result of the industry’s estimated $20 billion in catastrophic losses in 1992, analysts said. As a result of the losses, the companies could get premium increases of as much as 50% to reinsure other property and casualty insurance companies. Prudential Reinsurance lost $60.5 million last year, contrasted with earnings of $97 million in 1991. The company blamed the losses on hurricanes Andrew and Iniki, the riots in Los Angeles, the flooding of downtown Chicago and the storm that lashed the Northeast in December.