Travelers is to set aside additional reserves of $62mn before tax in the first quarter of 2017 following the change to the UK discount rate for personal injury compensation.
The extra reserves mainly relate to UK public liability and commercial auto liabilities, said Travelers, which put the after-tax hit at $51mn.
Travelers noted that two-thirds of the claims exposure stems from legacy books that are now in run-off.
The insurer shrugged off the increase to its prior-year loss reserves, noting:...
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