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World Insurance Report

Reserving

Mr Watson said the industry had recognised the need to reserve for the 1997, 1998 and 1999 years. ‘So far no one is talking about 2000, which saw a very meagre price increase and very little contraction of capacity. The fact of the matter is that the reinsurance industry is going to have to recognise the unprofitable book for 2000 as well.

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