Tag Archives: Chuck Mitchell

A decade of profitability: 2013 year-end results for medical professional liability specialty writers

The medical professional liability (MPL) market has sustained favorable financial results again in 2013. This article reviews the 2013 results overall, attempts to glimpse what the year-end results might have in store, and works to detect changes in the current trends that continue to produce stellar financial results for the MPL segment of the insurance industry.

MPL specialty writers, as a whole, enjoyed yet another outstanding year financially. Though the continuation of these outstanding financial results is unsustainable long-term, there is still no clear indication from the year-end 2013 financial statement data that suggests these trends are subsiding.

This article was originally published in the April 2014 issue of the Medical Liability Monitor.

First quarter financial results for medical professional specialty insurers favorable

The medical professional liability (MPL) market has sustained very favorable financial results in the face of gradually declining premium and increasing combined ratios. The saving grace for the market continues to be its sizeable reserve releases, which have exceeded $1 billion in each of the last six years for the collection of MPL writers that we consider in our analysis. Through the first quarter of 2013, we are seeing a continuation of the financial trends of recent years. Our consultants project another profitable underwriting year for the composite in 2013, although profit margins will likely decline relative to recent years should the current financial trends continue. Pricing pressure continues to be fueled by increasing surplus levels and the desire to maintain exposures against increasing competition and the migration of physicians to self-insured employment settings. The largest remaining uncertainty lies in the sustainability of prior year reserve releases at the level we’ve observed in recent years.

Download and read the entire article here.

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

2012 financial results for medical professional liability specialty insurers

An analysis based on the composite financial results of a large group of insurers that specialize in medical professional liability (MPL) coverage shows a steady drop in premium but remarkable calendar-year profitability nonetheless. However, despite the strong financial results, it appears that the MPL insurance market is continuing to soften. As the healthcare industry goes through a period of dramatic change, there is significantly more uncertainty in both the future of MPL claim costs and the future of overall MPL insurance market conditions.

Download and read the entire article here.

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

First look: 2012 Q1 results for MPL specialty writers

Analysis of first quarter financial results suggests that medical professional liability (MPL) specialty writers will continue recent financial trends in 2012. Prevailing themes include declining premiums, which puts pressure on underwriting results, as well as the enduring drop in Treasury yields that places pressure on operations results. But MPL insurers are still benefiting from the persistent, favorable reserve releases that help to support excellent calendar year underwriting results and increasing dividends for policyholders. Early indicators for 2012 suggest that MPL underwriters will continue to see favorable results and strong operating margins in 2012.

For more, read the new article in Medical Liability Monitory.

2011 financial results for medical professional liability specialty writers

Based on the historical relationship between quarterly and year-end figures of a composite of medical professional liability (MPL) specialty writers, Chuck Mitchell and Brad Parker attempted throughout the course of 2011 to project year-end results. With actual 2011 results now available, it’s time to review how this composite performed and how well the projections held up.

Based on data compiled by SNL Financial, the authors have examined the collective financial results of the composite, which had direct written premium totaling almost $4.13 billion in 2011. Despite the fact that direct written premium for the composite declined for the sixth straight year, this group of companies continues to achieve remarkable calendar-year profitability, which has been indicative of the broader MPL market.

This article was first published in the April 2012 issue of Medical Liability Monitor.

You can read the full article here.

Rounding third and heading for home

Based on available results for medical professional liability (MPL) specialty writers through the third quarter of 2011, recent financial trends persist.

Premium volume continues to drift downward and coverage-year combined ratios continue to creep upward as softer rate levels impact underwriting results. Lower bond yields are reflected in lower investment income, further pressuring operating margins. Nonetheless, favorable takedowns of historical claim reserves continue to buoy calendar-year results and boost capital levels.

An article first published in Medical Liability Monitor examines the collective financial results of a group of insurers specializing in MPL coverage with direct written premium of about $4.3 billion in 2010.

The authors compare the historical financial results through September 30 of each year to full-year results in order to infer what year-end 2011 results might look like.

Read the full article here.