US Facilities Hurt by Hurricane Losses
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COSTA MESA — US Facilities, a medical insurance company specializing in stop-loss coverage, reported last week that third-quarter earnings may be down as much as $1 million due to increased claims in the wake of Hurricane Andrew.
The company said that it expects net income to drop by 17 cents a share by Sept. 30, the end of the current quarter, because of claims in both Florida and Louisiana, where Hurricane Andrew hit last month.
The drop in profit is a turn-around for the company, which has seen rising revenue and net income.
US Facilities has had profits of more than $1 million for each of the past two quarters of the current year. It posed record net income for 1991, earning $7 million, or $1.64 a share on revenue of $63 million.
But the company said that its year-end results should not be affected by the jump in hurricane-related claims.
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