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Workers Comp Insurers Building up Reserve Funds on Underwriting Gains

Private workers compensation insurers increased reserve funds last year as their aggregate combined ratio fell below 100% for the first time in nearly a decade, but observers remain concerned about the industry's overall loss reserve position.

With a calendar-year combined ratio of 98% — improved from 102% in 2013 and 109% in 2012 — 2014 marked the first workers comp underwriting gain since 2006, according to a report released this month by the National Council on Compensation Insurance Inc.

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