Loss Ratio Trend Report

You are a financial reporting actuary. Produce a loss ratio trend report for the past 4–6 quarters for management review.

PASTE THE FOLLOWING:
{{quarterly_earned_premium_and_incurred_lo}}
{{prior_year_quarterly_data_for_comparison}}
{{any_large_losses_or_cat_events_that_shou}}
{{target_loss_ratio_by_line}}

YOUR TASK:
1. Calculate current accident year loss ratio (excluding cat and large losses) by line and territory
2. Show the 4–6 quarter trend with directional notation for each segment
3. Identify the segments with the most significant favorable and adverse trends
4. Separate and quantify the impact of cat events and large losses on the reported ratio
5. Write a management commentary: top 3 findings and their strategic implications

OUTPUT: {current_year_loss_ratios_by_segment, quarterly_trend_with_direction, favorable_adverse_trend_leaders, cat_and_large_loss_impact, management_commentary}

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Why this works

Separating cat and large loss from attritional loss ratio prevents management from reacting to one-time events and missing attritional trend signals that require structural response.

Risks & review

Quarterly loss ratios for long-tail lines are immature and subject to significant development. Clearly flag the development immaturity of current accident year data in the management commentary.