Tag Archives: Brad Parker

First quarter financial results for medical professional liability specialty writers

This article by Milliman’s Eric Wunder and Brad Parker summarizes key financial results for medical professional liability writers from the first quarter of 2017. First-quarter premiums declined for the 11th consecutive year, dropping below the $2 billion mark for the first time since 2002. The 3.1% decrease relative to Q1 2016 is consistent with the average annual decrease seen during the past five years.

This article was originally published in the July 2017 issue of the Medical Liability Monitor.

First quarter financial results for medical professional liability specialty writers

The medical professional liability (MPL) market began 2016 experiencing similar trends to those seen in recent years. The first quarter of 2016 has seen the market maintain favorable calendar-year financial results despite declining premium volume and steadily increasing operating ratios. If the historical relationship between first quarter and year-end holds, MPL speciality writers can expect weaker financial results, compared with recent years, yet still an overall profitable year. This article by Milliman’s Brad Parker and Eric Wunder provides more perspective.

This article was originally published in the July 2016 issue of the Medical Liability Monitor.

2015 year-end results for medical professional liability specialty writers: Profits remain, while downward trends continue

Medical professional liability financial results for 2015 are telling a tale similar to the one told in 2014. For calendar year 2015, this segment of the casualty insurance industry can boast yet another healthy bottom line, but we should take note that declines in both the premium level and the amount of favorable annual reserve development appear to be taking their toll on overall net income. Total written premium during 2015 dropped by 4.4% when compared with 2014, making it the largest single-year percentage decline in premium since 2007-2008. Steadily declining premium levels have contributed to the erosion of the composite’s annual underwriting profit. The composite’s combined ratio reached 95% in 2015, its highest mark since 2005. Milliman’s Brad Parker and Eric Wunder provide some perspective in this article.

This article was originally published in the December 2015 issue of the Medical Liability Monitor.

Third-quarter financial results for medical professional liability specialty writers

Through three quarters of 2015, the composite’s direct written premium level is roughly 5% below premium levels at the same point in 2014. The prolonged profitability enjoyed by the medical professional liability (MPL) market continues to be driven by low claim frequency, stable loss severity, and, most notably, large releases in prior coverage years, which is due to conservative reserving practices. With a projected 2015 reserve release exceeding $900 million, it appears the MPL market’s run of profitability will remain intact for the foreseeable future. Milliman’s Brad Parker and Chuck Mitchell provide some perspective in this article.

This article was originally published in the December 2015 issue of the Medical Liability Monitor.

Midyear 2015 financial results for medical professional liability specialty writers

Aggregate direct written premium for the composite of medical professional liability (MPL) specialty writers continues its decline from a high in 2006 of $6.8 billion to $5.1 billion in 2014, a 26% decrease. Six months into this year, this trend is continuing, with direct-written premium down 4.7% from the same period in 2014. Despite the decline in net premium, robust competition, and historically low investment yields, MPL specialty writers continue to be profitable and continue to increase surplus levels. Net income for this composite is projected to approach $1 billion in 2015. But in the face of these positive overall results, pretax calendar-year underwriting and investment income are trending downward. Milliman consultants Brad Parker and Chuck Mitchell provide some perspective in this article.

This article was originally published in the September 2015 issue of the Medical Liability Monitor.

First quarter financial results for medical professional liability specialty writers

If the historical relationship between first-quarter and year-end financial results holds, medical professional liability (MPL) writers should be in store for another profitable year. First-quarter direct-written premium declined for the ninth consecutive year, falling to $1.8 billion. The 4.7% decline from the first quarter of 2014 is the largest single-year percentage drop since 2011 and is a full point higher than the average annual decline of 3.7% from 2006 to 2015. First-quarter 2015 development fell in line with that of the past two years. Milliman consultants Brad Parker and Chuck Mitchell provide some perspective in this article.

This article was originally published in the July 2015 issue of the Medical Liability Monitor.