Thus the loss reserve was projected as unchanged from the end of December, at $401 million.

Insurance companies set loss reserves for claims they have received and those they expect to receive.

For many companies, loss reserves set up back in 1997 through 2000 have proven to be inadequate.

In that case, the company will have to make additions to its loss reserves.

Currently, banks must reduce their profit by the full amount of any addition to loss reserves.

It would also push loss reserves to $3.76 billion.

They added that many banks recognized the coming troubles by establishing large loss reserves two years ago.

The company said the increase to the loss reserves covered loans outstanding to 18 developing countries.

Great Western said its earnings for the period were reduced by $85 million, which went into a loss reserve.

Great Western added $25 million to its loss reserve for 1989's third quarter.