Statutory Accounting Principles

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Statutory Accounting Principles

A system of accounting used by insurance companies. They are considered more conservative than the Generally Accepted Accounting Principles; this is because insurance companies will, at one point or another, have to pay benefits to most policyholders. Therefore, they must take all possible steps to remain solvent. SAP have minor variation by state, but are generally used by all insurance companies in the United States.
References in periodicals archive ?
Any other works related to preparation of Accounts of the Company as per statutory accounting procedures of the Companies Act and requirements of CAG and as directed hv Manaoinn Director.
Generally, statutory accounting processes may be decentralized, with the responsibility being primarily with local management.
As the vice president of international finance, Hanson is responsible for leading Barry-Wehmiller's international trade financing team; oversight of international treasury management, management of all foreign exchange transactions; and oversight of European statutory accounting requirements.
But this gain is more than offset by a loss in the surplus (therefore risk-based capital) because of mark-to-market of the portfolio, pursuant to the statutory accounting treatment of the re-remic transaction.
5 SAP Basis represents statutory accounting principles as codified by the National Association of Insurance Commissioners (NAIC) Selected financial data of Erie Insurance Exchange:
The STATs are prepared in accordance with National Association of Insurance Commissioners (NAIC) statutory accounting principles.
Its clear and concise description of GAAP versus statutory accounting is one of its primary strengths.
CHICAGO -- Northern Trust has enhanced its reporting services for insurance companies, combining statutory accounting and investment information to accumulate, analyze and sort data into specialized formats required by regulators and rating agencies.
It is also anticipated that the transaction is to result in a statutory accounting gain of about USD365m and to reduce the company's capital requirement by USD1bn.
Statutory accounting has a generally conservative bias, so that the financial condition of insurers as reflected in their annual statements serves as a paradigm for the evaluation of a financial institution as a virtually "unsinkable ship.
Allowing the use of these ac counts for statutory purposes will therefore allow companies utilizing IAS for statutory accounting purposes at the subsidiary level to adjust these IAS accounts to determine the tax accounts.
Under statutory accounting rules, the interest expense on the surplus note is not incurred until approved by the New York Insurance Department.