CONTINENTAL <GIC> SEES 1987 NET UP FROM TAX LAW
Continental Corp said the fresh start
provision of the Tax Reform Act of 1986 may add 1.30 to 1.60 to
1987 earnings per share.
    The insurance holding company had net earnings of 449.6 mln
dlrs, or, or 7.42 per share, in 1986.
    John Loynes, Continental chief financial officer, said the
fresh start provision allowed the company to discount opening
tax reserves to January 1, 1987, which released deferred taxes
into earnings.
    Loynes said the provision's potential benefit would decline
gradually over the next four years, during which time
Continental will pay 250 mln to 350 mln dlrs more in taxes.
    Loynes added, however, the higher taxes are not expecetd to
have a significant impact on earnings.
 Reuter
