NCCI: Comp Ratio Recuperating
Friday, May 16th, 2003 Workers' CompensationThe National Council on Compensation Insurance reported today at its annual conference here that the combined ratio for the workers‘ compensation insurance sector made a "remarkable" 12-point improvement over 2001. The NCCI preliminary market analysis found the combined ratio for Calendar Year 2002 is 110, down from 122, ending a six-year string of increasingly unprofitable results. Not all of the NCCI "State of the Line" was positive, however. Investment income for comp, NCCI said, fell to an estimated 14 percent in 2001 compared with 20 percent during 1997-2000. NCCI attributed the decrease to lower interest rates and a reduction in realized capital gains. By NCCI calculations the combined ratio incorporated with the investment gains results in a pretax operating profit of 2 percent for workers‘ comp in 2002.
