- 8 -
of Tillinghast’s draft reports and concluded that for annual
statement purposes petitioner should report estimated unpaid
losses that were almost 10 percent higher than Tillinghast’s
estimates. Consistent with these recommendations, in its 1993
and 1994 annual statements, petitioner reported estimated unpaid
losses that differed from Tillinghast’s estimates as shown below:
1993 1994
Unpaid loss reserves
on petitioner’s
annual statement $81,391,000 $84,559,000
Tillinghast’s
recommended reserves 74,027,009 77,029,796
Difference 7,363,991 7,529,204
Percentage 9.95 9.77
Tillinghast’s Final Reports
Tillinghast’s final reports for yearends 1993 and 1994,
dated February 10, 1994, and February 8, 1995, respectively, show
its original estimates of petitioner’s yearend loss reserves as
well as the higher amounts of petitioner’s “carried” loss
reserves, noting the difference between these estimates in both
dollars and percentages. The Tillinghast reports do not
otherwise discuss the variations between its loss reserve
estimates and the reserves that petitioner carried on its annual
statements, which were almost 10 percent higher.
The 1993 and 1994 Tillinghast reports state identically in
their prefatory “Conditions and Limitations” sections:
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011