-31- Streff determined a reasonable range of deviation extending from $570,000 below to $1,140,000 above his most likely reserve estimates. As part of his report, Streff “restated” petitioner’s carried reserves for each year of its history by considering subsequent payments and changing reserve levels for successive years through 1995. According to this analysis, petitioner’s initial reserves for each of the years 1982 through 1985, were lower than their restatement in 1995, whereas petitioner’s initial reserves for each of the years 1987 through 1994 were 27 to 52 percent higher than their restatement in 1995.23 23 Streff’s expert report indicates that on the basis of information in petitioner’s annual statements, petitioner’s “restated” reserves as of Dec. 31, 1995, and the resulting deficiency or redundancy in the initial booked reserve, were as follows (in millions of dollars): Original 1995 Deficiency Year Reserve Restatement (Redundancy) 1982 $105 $302 $197 1983 498 1,397 899 1984 1,245 2,320 1,075 1985 2,138 2,961 823 1986 4,323 2,792 (1,531) 1987 5,557 3,116 (2,441) 1988 5,989 4,388 (1,601) 1989 7,837 5,165 (2,672) 1990 9,618 4,656 (4,962) 1991 10,127 4,954 (5,173) 1992 10,550 5,577 (4,973) 1993 11,636 6,953 (4,683) 1994 11,581 7,885 (3,696) 1995 12,500 12,500Page: Previous 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Next
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