NU Online News Service, June 15, 12:10 p.m. EDT

Workers' compensation results are a drag on the P&C insurance industry's numbers, producing a combined ratio that is 7 points worse than the industry as a whole, according to a report by Fitch Ratings.

“Recent premium rate increases in workers' compensation are an encouraging sign that the market has reached a cyclical bottom,” says Jim Auden, managing director at Fitch, in a statement. “However, claims costs will continue to be affected by rising medical severity and premium rates will need to improve significantly for the market to reach an underwriting breakeven.”

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