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 put 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.

This article was orginally published in the Medical Liability Monitor, July 2012.