While natural and financial catastrophes make headlines, they do not necessarily represent the biggest financial headaches for insurers, a new study released by A.M. Best finds.

The report, based on A.M. Best’s proprietary database of financially impaired companies and supplemented with public data, finds the majority of the 11 financially impaired property/casualty companies in 2010 succumbed primarily to deficient loss reserves/inadequate pricing, with underlying themes of overstated assets and reinsurance disputes. “None of the 2010 impairments were directly attributable to catastrophe losses, although several had accumulated large underwriting losses over the prior three years,” the report states. “Only two companies in 2010 failed as a direct result of investment losses/overstated assets, and the impairments occurred in circumstances not related to the financial crisis.”

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