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$71 m wiped off Sphere Drake’s market cap after increasing marine P&I reserves

Sphere Drake Holdings Ltd. had $71 million wiped off its market value in the four trading days after the firm announced it was increasing by up to $15 million its reserves on its marine protection and indemnity insurance business.Investors began bailing out of the company immediately after the insurer’s surprise announcement on September 27 that the extra reserving would lead to a drop in third-quarter earnings of $12.75 million or 69 cents per share.