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ORANGE COUNTY EARNINGS

US Facilities Takes Earnings Jolt From Quake

May 11, 1994|JAMES S. GRANELLI

US Facilities Corp., the target of a hostile takeover attempt, said Tuesday that damage claims from the Northridge earthquake in January caused its first-quarter earnings to fall 68% to $600,000, or 10 cents a share.

The Costa Mesa holding company for several insurance carriers said that claims from the earthquake resulted in payments of $2.1 million, which lowered net income by $1.4 million. Last year, the company earned $1.9 million, or 31 cents a share, for the first three months.

Quarterly revenue rose to $30.5 million from $26 million for last year's first quarter.

US Facilities provides medical stop-loss and property and casualty reinsurance for employers. Reinsurance is a layer of coverage over primary insurance. The company's medical stop-loss coverage provides self-insured employers with benefits after the employers pay a preset amount in claims.

US Facilities is the target of a takeover bid by Fidelity National Financial Inc. in Irvine, the nation's fifth-largest title insurance company. Fidelity had offered $79 million, or $15 a share, to acquire the company as part of Fidelity's effort to diversify its operations. That offer technically expired, but will be revived later, Fidelity has said.

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