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.

This 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 Sept. 30 of each year to full-year results in order to infer what year-end 2011 results might look like.