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 to 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.

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