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 ?
Codification: Adoption of Codification of Statutory Accounting Principles was required for Ohio-based insurance companies effective January 1, 2001.
The selected financial data below is derived from the Erie Insurance Exchange's financial statements prepared in accordance with Statutory Accounting Principles.
Our financing would not involve the incurrence of any debt, as defined by statutory accounting principles, by State Auto, STFC or their subsidiaries or affiliates.
In its report, Fitch discusses how differences in OTTI recognition can impact the financial statements filed by insurers using both generally accepted accounting principles (GAAP) as well as under Statutory Accounting Principles (SAP) used for regulatory filings.
During these same time periods, ASLAC's earnings under statutory accounting principles (SAP) also experienced significant volatility related to equity market trends.
Statutory accounting principles differ in certain respects from generally accepted accounting principles (GAAP).
3 billion of goodwill from the Gartmore acquisition in compliance with statutory accounting principles, the ratio between net premium written and policyholders' surplus deteriorated from 1.
The Statutory underwriting ratios are based on statutory accounting principles and are calculated as follows: