Best Says Asbestos Liabilities Unfunded by 40%

The U.S. property/casualty insurance industry--principally commercial insurers, and to a lesser extent, professional reinsurers--remains significantly underfunded by nearly 40% with regard to reserves for ultimate, undiscounted asbestos and environmental liabilities, according to a special report released by A.M. Best Co. With incurred-to-date losses of $45 billion (asbestos) and $31 billion (environmental), A.M. Best's estimates of unfunded asbestos and environmental liabilities as of year-end 2002 are $20 billion and $25 billion, respectively, for a total of $45 billion, down from $53 b...