Transamerica Corp. reported net income for the third quarter of $16.3 million, up from $5.9 million for the comparable period last year, on revenue of $1.7 billion, up from last year's $1.34 billion.
That brought earnings for the nine months to $103.5 million on revenue of $5 billion, compared to net income of $121.4 million on revenue of $4 billion for the year-ago period.
The San Francisco-based insurer and financial-services company said it was forced to add $51 million after taxes to increase the claims reserves of its property-casualty insurance unit. A year earlier, it pumped $38 million into insurance reserves.
The need to strengthen reserves will "prevent Transamerica Corp. from exceeding 1984's full-year earnings in 1985," said James R. Harvey, chairman, president and chief executive. He predicted, however, that new management, higher premiums, more careful underwriting and other changes in the property-casualty subsidiary would restore it to profitability next year.
The company's life insurance, insurance brokerage, consumer finance and title businesses all posted record results for the quarter and nine months, Harvey said.