The New Jersey-based MIIX Group, Inc. has issued a statement indicating that it will require further time to complete an examination of its loss reserves.
The bulletin noted that MIIX had announced on February 5, 2004 that it had notified the New Jersey Department of Banking and Insurance of the need to increase its loss and allocated loss adjustment expense reserves based on the progress of its annual audit at that time.
The company said it “had expected to complete its analysis by mid-March but, due to the complexities associated with the analysis of the claim data, the adjustment required continues to be under review.”
It identified the principal areas of continuing analysis as involving “the rate of acceleration of claims as a result of the company’s runoff status and the establishment of appropriate rates of severity in the currently uncertain medical malpractice environment.”
MIIX said it “expects to release its financial results as soon as its analysis is completed, which the company presently anticipates to occur over the next several weeks. The increase in reserves, given the company’s marginal surplus levels, will have a materially adverse effect on the company.”
Was this article valuable?
Here are more articles you may enjoy.