Declarations

Workers’ Comp Combined Ratio

“The workers compensation insurance industry had a trying year in 2009. And a series of unknown factors – from the pace of economic recovery to the long-term impact of the new federal health care law, among others – leave the line in a precarious position and facing a host of challenges moving into 2010.”

—Steve Klingel, president and CEO of NCCI Holdings Inc., commenting on his organization’s “State of the Line” workers’ compensation market analysis. As workers’ comp premiums continued to decline in 2009, the combined ratio jumped nine points to 110, in part due to a single carrier adding about $1 billion to excess workers’ compensation reserves for accident years 2000 and prior, the report indicated.

Spend Only When Necessary

“Reported capital spending remains at record low levels and plans to make outlays at historic lows. Looks like no money gets spent unless something breaks or the roof leaks.”

—The National Federation of Independent Business’ optimism index, noting that small U.S. business owners are slightly less pessimistic about their outlook, and in the face of continuing weak sales do not plan to boost capital spending or employment.(Reuters)