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S&P Stays Negative on Outlook for P/C Industry

Standard & Poor's Credit Market Services issued a report May 10, on the U.S. property/casualty industry that maintains its negative rating outlook on this sector...
May 18, 2004

Standard & Poor's Credit Market Services issued a report May 10, on the U.S. property/casualty industry that maintains its negative rating outlook on this sector of commercial insurance. S&P says this is due primarily to "reserve shortfalls" that "continue to plague U.S. property/casualty insurers despite their strong earnings reports in 2003." S&P said that in 2002 and 2003, commercial p/c insurers added more than $40 billion to their reserves -- with major contributions for workers' compensation, medical malpractice, and commercial multiperil -- yet they also released $5 billion for the new 2002 accident year, which could turn out to be premature.  More

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