BestWeek: Workers' Comp Segment Expected to Post First Underwriting Profit in 12 Years.

OLDWICK, N.J. -- The workers' compensation line of business is expected in 2006 to record its lowest combined ratio in 34 years and an underwriting profit for the first time since 1995, according to a report prepared by A.M. Best Co.

The underwriting profit can be attributed, among other things, to an estimated 8.3-point decrease in the loss and loss-adjustment expense ratio to 71.5 in 2006, the report says. In addition to the favorable frequency trend, the workers' comp line benefited from state reform efforts, improving reserve adequacy and an increased focus on loss control and workplace safety.

Also in BestWeek:

* Inga Beale, chief executive officer of Converium, is upbeat over the company's chances of fending off the takeover bid by French reinsurer Scor. Beale talked with BestWeek about how Scor's bid undervalues the Swiss reinsurer's recent performance;

* Aon Corp. said it is now the largest insurance broker, based on brokerage revenues, but first-quarter results are due soon. But Marsh, with increasing profits, may reclaim the top broker trophy; and

* Best's Global Insurance Composite Index finished the week of March 29 up 10.69% from a year ago.

The composite index reflects the performance of 183 insurance stocks. The week's top performers were Atrium Underwriting, Muenchener Rueckverischerungs, China Insurance International, Meritz Fire & Marine Insurance Co., and Northbridge Financial Group. The bottom five performers were KMG America Corp., Penn Treaty American, Amlin, UnitedHealth Group, and CNA Surety.

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Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.