U.S. property/casualty insurers’ overall carried reserves were deficient by $34.3 billion, or 6.5% of reported surplus, at year-end 2009, based on statutory data reviewed and reported by A.M. Best Co.

The figures exclude the mortgage guaranty and financial guaranty composites but they include $13.7 billion of asbestos and environmental (A&E) deficiency and $22.5 billion of statutory discount. After removing the effects of A&E and discounting, the industry’s core undiscounted reserves are believed to be slightly redundant by $1.9 billion at year-end 2009, notes the ratings firm. A.M. Best released the following information as part of its report:

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