The familiar trends from recent years continue during the first half of 2012 for medical professional liability (MPL) specialty insurers. Calendar-year, net-after-tax income continues its downward trend along with premium volume. Overall calendar- year results are strengthened by familiar reserve releases, which act as camouflage for softening rate levels. Nonetheless, the aggregate bottom line for MPL specialty writers continues to be strong. This analysis identifies patterns in the historical relationship between the financial results at the end of each quarter compared to the financial results at year-end. Examining this relationship, together with our view of current market trends, we project what the year-to-date 2012 results might foretell about future market conditions.

This article was orginally published in the September issue of the Medical Liability Monitor.