First, roughly two-thirds of the reserve increase is attributed to core business, with the remainder added to asbestos reserves. This means that the current business was significantly more underpriced than the company thought when it was renewing it over the past 2-3 years, which suggests that the current business is likely not as profitable as it is being reported. Look for further adverse development in future earnings reports.
Second, let's take the idiot's view, that, absent the charges, the company earned $0.30 (If Mom had balls, she might have been my dad): Annualize this and you get a whopping $1.20 per share, on a book value of about $35, for a return on equity of 3.4%. Truly astounding for a company that is in its industry's upcycle. What happens in the downcycle?