Best’s Special Report: U.S. Property/Casualty Industry Loss & Loss Adjustment Expenses Reserves Slightly Deficient
The U.S. property/casualty (P/C) industrys overall carried reserves for loss and loss adjustment expenses (LAE) at year-end 2018 are estimated to be slightly deficient by $29.3 billion, or 3.8% of reported surplus, according to a new analysis by AM Best.
- The U.S. property/casualty (P/C) industrys overall carried reserves for loss and loss adjustment expenses (LAE) at year-end 2018 are estimated to be slightly deficient by $29.3 billion, or 3.8% of reported surplus, according to a new analysis by AM Best.
- The new Bests Special Report, titled, U.S. Property/Casualty Industry Loss & LAE Reserves Slightly Deficient, states that this amount included $14 billion of asbestos & environmental (A&E) deficiency and $20.7 billion of statutory discount, which was treated as a deficiency from the full value reserves.
- Since 2015, the estimated industry reserve deficiency has remained near 5%, and AM Best expects the total reserve deficiency to remain below 5% at year-end 2018.
- After two years of declining favorable development, the industry reported a higher level of favorable development in 2017.