Business Insurance, July 6th, 1998
Insurer revises accounting methods, names new CFO
DOUGLAS McLEOD
BIRMINGHAM, Ala. - Vesta Insurance Group Inc. will restate its financial results for the last five years, reducing earnings by a total of $72.4 million to correct accounting problems that triggered a massive sell-off of its stock last month.
Vesta announced last week that it will take a $13.6 million aftertax hit to earnings for the fourth quarter of 1997 and first quarter of 1998 after finding that it had overestimated premium income and improperly reduced reserves.
Of the $13.6 million, about $6.1 million represents a rei...
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