The workers' compensation market in 2006 had its best underwriting result in 30 years, but insurers should be aware of some of the mitigating circumstances and the challenges ahead before celebrating, according to the National Council on Compensation Insurance.

The industry posted a calendar-year combined ratio of 96.5, the first underwriting profit for the line since 1995, noted NCCI during its annual symposium here.

However, NCCI Chief Actuary Dennis Mealy added some words of caution in a statement released prior to his "state of the line" briefing at the meeting. "Despite excellent underwriting results," he warned, "it is important to note that the record-low interest rates of recent years as well as the industry's need to strengthen its reserve position made these types of results a necessity."

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