Negative PDLD ratio

[givemeapass]

How could that happen?

[Five in Two]

Just guessing here, but it's possible your capped loss could decrease while your overall loss increased.

For instance if you capped claims at 100k and had two claims in the past:

Claim 1 = 50k Capped Claim 1 = 50k
Claim 2 =125k Capped Claim 2 = 100k
Total Loss = 175k
Total Capped = 150k

They could develop into:
Claim 1 = 40k Capped Claim 1 = 45k
Claim 2 = 150k Capped Claim 2 = 100k
Total Loss = 190k
Total Capped = 145k

Now you have negative retro premium while having positive loss development.

[Dash.]

If losses in excess of the loss caps developed down (but not enough to affect the capped loss), and losses below the loss caps developed up, you would have an upwards development of premium and, possibly, a net downward development on loss.