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losses for the years ended 1987 and 1988. Mr. Biscoglia's
summary testimony that he examined the reserves recorded by
Parthenon for 1987 and 1988 and found that the total amounts were
within an acceptable range for each year is not supported by any
detailed explanation or documentation. Mr. Merlino, on the other
hand, in his expert report compared the ultimate losses recorded
on Parthenon's annual statements as of yearend 1987 and as of
yearend 1988 for the 1984 through 1988 policy years with the
ultimate losses recorded on the annual statement as of yearend
1993 and concluded that the comparison indicated that the
professional and general liability reserves for policy years 1987
and 1988, in retrospect, were materially overstated. Based on
the foregoing, we conclude that petitioners have not established
the reasonableness of the unpaid losses reserves they are
claiming for the unpaid professional and general liability
losses, and, therefore, in keeping with the parties' stipulation,
we hold that the adjustments proposed by Mr. Merlino conforming
the unpaid losses reserves for workers' compensation and
professional and general liabilities for the years ended 1987 and
1988 to the amounts recommended in Mr. Biscoglia's reserve
analysis reports for those lines of business should be made.
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