Compared to the past five years, the Guy Carpenter Bermuda Composite’s underwriting results are not abnormal. Unusually low catastrophe losses in 2006 and 2007 make the first nine months of 2008 seem extreme. Material loss and loss adjustment expense redundancies were unusually low in 2006 and 2007 as well. Reserve redundancies reduced the Bermuda Composite’s combined ratio by 2.2 points in 2006, 6.3 points in 2007, and more than 7.5 points for the first nine months of 2008.
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