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Med mal beats S&P’s expectations

01 March 2010

Favourable reserve development meant medical malpractice insurance writers achieved better operating results in 2008 and the first nine months of 2009 than S&P had predicted two years ago.

Read more: medical malpractice

Favourable reserve development meant medical malpractice insurance writers achieved better operating results in 2008 and the first nine months of 2009 than Standard & Poor's (S&P) had predicted two years ago. Nevertheless, S&P expects the market to continue to soften in 2010 as prices decline.

Rates fell 4% to 10% in both 2008 and 2009, with declines varying by state. Softening rates will reduce accident-year underwriting profits from 2009 and increased price competition will likely affect both new business and renewals, said S&P.

The rating agency expects many medical malpractice monoline companies to report a stable or improved combined ratio for 2009, mainly because...


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If last year was the year of the cat, then this year could be the year of the debt crisis.

Mike Van Slooten, head of international market analysis at Aon Benfield