Third-quarter reserve releases declined nearly 19 percent over the same period a year prior—which could put greater pressure on carriers to increase rates, according to analysis by Stifel Nicolaus.
In its report, the financial-services firm says it reviewed 55 publicly traded insurance companies and found net releases for the third quarter of this year stood at $1.54 billion, compared to $1.9 billion for the same period last year.
The drop suggests that “reserve releases are decreasingly masking accident-year underwriting result deterioration” resulting from the prolonged soft market, claim inflation and catastrophe losses.
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