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AMI Risk Consultants, Inc.
The WCI retained the actuarial firm AMI Risk Consultants,
Inc. (AMI), to review petitioner’s 1993 annual statement unpaid
losses. In an opinion letter dated November 30, 1994, AMI
determined that petitioner’s unpaid loss reserves, as reported on
petitioner’s 1993 annual statement, “Make a reasonable provision,
in the aggregate, for all unpaid loss and loss adjustment expense
obligations of the Company under the terms of its policies and
agreements.” In support of this conclusion, AMI conducted its
own analysis of petitioner’s unpaid losses. The AMI analysis
made use of data through June 30, 1994, that was not available to
Tillinghast as of January 1994. Like Tillinghast, AMI used paid
and incurred loss development methods as well as a paid
Bornhuetter-Ferguson method. Unlike Tillinghast, AMI did not
factor in any prior selections.7
The AMI report estimated petitioner’s 1993 unpaid losses at
$87,419,000. The AMI report concluded that petitioner’s 1993
annual statement unpaid loss reserves were “reasonable”, falling
within a range that AMI determined had a “low end” of $81,300,000
and a “high end” of $93,539,000. The AMI report stated that its
7 Since AMI Risk Consultants, Inc. (AMI), had not prepared
any previous report for petitioner, it would not have had
available any prior selections of its own.
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