-45-
him to believe that there had been reserve strengthening in
1993. He testified that when he was preparing his expert
opinion, he did not necessarily have the knowledge of the
uncontradicted testimony offered by petitioner’s officers at
trial, which indicated that there was no reserve strengthening.
We conclude that Streff’s estimates of petitioner’s unpaid
losses for 1994 and 1995 were based on faulty assumptions
regarding petitioner’s 1993 increases in its case reserves. For
each of the years 1994 and 1995, we conclude that the best
available evidence of a fair and reasonable estimate of
petitioner’s unpaid losses is the point estimate selected by
petitioner’s qualified actuary. Therefore, we conclude and hold
that fair and reasonable estimates of petitioner’s unpaid losses
for 1994 and 1995 are $10,096,656 and $8,706,428, respectively.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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