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The following is an excerpt from the recent earnings report of American Financial: The California Workers’ Compensation business reported excellent...See more » The following is an excerpt from the recent earnings report of American Financial: The California Workers’ Compensation business reported excellent profitability with a combined ratio of 80.2% in the 2007 second quarter, 1.7 points higher than in the same period a year earlier. The 2007 period includes 9.0 points of favorable prior year development while the 2006 second quarter includes 2.2 points of favorable development. Through the first half of 2007, the combined ratio of 79.4% improved 1.8 points compared to the same 2006 period. Year-to-date 2007 results include 8.2 points of favorable development compared to less than a point in the 2006 period. The improved claims environment resulting from the California workers’ compensation reform legislation has continued to benefit our results as well as those of the industry. Due to the long-tail nature of this business, we continue to be conservative in recognizing the benefits from the reform legislation until a higher percentage of claims are paid and the ultimate impact of reforms can be determined. Net written premiums for the second quarter and first six months of 2007 were 20% below the same 2006 periods, reflecting the effect of significantly lower rates. These rate reductions averaged about 24% through the first half of this year and demonstrate the positive effects of reform legislation in lowering workers’ compensation costs for employers. http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070731006324&newsLang=en The insurers are doing real well with the insurance reforms. What about the employers, employees and health care providers? Are the still high California premiums now due to insurer profits and not rising health care costs?See less »