Quality of Insurer Earnings is now Quantifiable

By a News Reporter-Staff News Editor at Insurance Weekly News -- Year-end 2017 statutory financial information has been compiled and submitted to the National Association of Insurance Commissioners. Industry analysts and prognosticators will soon be publishing their discussions of the relative adequacy of loss and loss adjustment expense reserves (loss and LAE). Clearly, the adequacy of loss and LAE reserves is a critical determinant of the solvency of insurers. However, loss and LAE adequacy also affects the quality of reported statutory earnings. As such, Demotech introduces SPEQUELLAE, (spuh - kwell - uh), the first service to independently measure and identify the quality of pretax statutory earnings reported for a calendar year. Our SPEQUELLAE service is based upon self-prepared carrier information.

Demotech will update its SPEQUELLAE service on an annual basis as carrier managements re-evaluate earlier loss and LAE estimates. The quality of property and casualty pretax statutory earnings reported over the period 2011 through 2015, re-evaluated as of December 31, 2016, is available at www.demotech.com. The SPEQUELLAE service using a re-evaluation of previous L&LAE for the year-end 2017 financial statements will be available in May 2018.

Keywords for this news article include: Business, Demotech Inc.

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