NU Online News Service, July 7, 2:15 p.m. EDT
The property and casualty insurance industry had more than $19 billion of reserve redundancy at the end of 2009--a majority of which will be released this year and the next, according to Morgan Stanley.
A recent report on the p&c market from Morgan Stanley Investment Research said most of these reserves are in the workers' compensation, medical malpractice and personal auto liability lines, and could be a source of future earnings as they are released.
Morgan Stanley also said the current p&c soft market will not turn hard until the industry feels a reserve deficiency, negative operating profits and adverse development. Morgan Stanley predicted that this will likely not happen until 2013.
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