The study summarized in the articles titled “‘Industry’ Loss Reserve Studies Not Meaningful: Demotech Analysis” and “Underreserving, Balance Sheet Fundamentals Taking a Back Seat in Rating Agency Analyses,” and also in the whitepaper, A Discussion of P/C Loss and Loss Adjustment Expense Reserve Studies, is not intended to be, and should not be construed to be, a statement of actuarial opinion regarding loss and loss adjustment expense reserves or any other type of statement of actuarial opinion.

This study was compiled from sources that Demotech, Inc. believes to be reliable. However, Demotech, Inc. makes no representations or warranties as to the accuracy, reliability or completeness of such information, and the information should not be relied upon in making business, investment or similar decisions. Demotech did not independently verify the accuracy or reliability of the information.

This analysis was based upon financial statements promulgated using statutory insurance accounting principles as prescribed or permitted by the National Association of Insurance Commissioners. An analysis of financial statement based upon generally accepted accounting principles may have other implications.

The statutory insurance accounting information underlying our analysis was created, compiled and self-reported by the carriers.

As part of this analysis, Demotech did not review or seek to draw conclusions about the sizes or ownership structures of:

  • Companies with ratings of “A” or above that self-reported favorable L&LAE reserve development in each of the latest five calendar year reporting periods
  • Companies with ratings below “A” that self-reported adverse reserve development in each of the latest five calendar year reporting periods.