An insurance enterprise shall recognize a liability for the unearned premium
revenue at the inception of a financial guarantee insurance contract.
Previously, it was the IRS's position that such amounts should be included as part of the unearned premium
reserve subject to the 20% reduction.
Includes unearned premium
balances on financial guaranty and credit derivative policies.
Under the agreement, the unearned premium
reserves on ANV s marine and energy business will be moved to Tower Group and was earlier written from its New York office.
Partially offsetting these positive factors is the company's elevated investment leverage as a percentage of equity, as well as its elevated unearned premium
reserve leverage due to the long duration of vehicle service contracts.
However, the combined ratio is above the company s historical trends and reflects its increased level of unearned premium
reserves driven by the introduction of IFRS, forthcoming UAE regulatory requirements and increased business retention.
The collateralization should be for an amount equal to the captive insurance company's ultimate expected losses plus unearned premium
As part of the agreement, Ariel has agreed to provide FMFC with full protection related to the run off of Valiant's net loss and loss adjustment expense reserves and unearned premium
reserves on the closing date balance sheet.
The implementation of automated unearned premium
calculation to reinstate the old manual method resulted in extra provision of around BD270,000.
No claims can be paid from that policy, and the policyholder cannot receive any unearned premium
Another favorable financial statement benefit relates to any ceding commissions received in respect of year-end unearned premium
Although offsetting factors include high unearned premium
leverage, Dealers has made considerable progress in establishing actuarial reporting procedures with respect to the long duration unearned premium
reserves held at the administrator obligors with whom it does business.