John Hancock Reinsurance Entanglement

IMMS 01/13/00John Hancock Mutual Life Insurance Co. (Hancock) faces potential losses of more than $1 billion under the controversial Unicover Workers Compensation reinsurance program. According to Paine Webber analyst Alice Schroeder, Hancock faces gross exposure of up to $1.05 billion on Workers Comp reinsurance contracts whose holders are refusing to pay up. Hancock spokesman Stephen Burgay, said that "at the end of the day, we don't expect that this will impair either our brand or our strong capital position." The  company's Unicover woes come at an inopportune time because ...