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A report by PricewaterhouseCoopers L.L.P. has stated that casualty reserves in the Lloyd's and London market are vulnerable to adverse run-offs in the future, as insurers and reinsurers in the marketplace have been relying on prior year reserve releases to boost returns.
"A heavy reliance on reserve releases, fuelled by favorable claims experience, has become a feature of the Lloyd's and London market's recent financial results," said PwC. The reserves on the 2015 underwriting year were on an average 3% weaker than for business written in previous years, PwC said, reports Artemis.bm.
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