Recognized Loss

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Recognized Loss

In accounting, the sale of an investment or asset for less than the purchase price. Individuals and companies may use recognized losses to offset taxable income from other gains. For example, if a company has $5,000 in capital gains in a given year and $2,500 in recognized losses, its taxable income on the capital gains is only $2,500. Recognized losses can also be applied to future years. For example, if a company has no taxable income in a given year, recognized losses may offset taxes on profits for up to a certain number of years. See also: Future income taxes.
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The industry reported a significant decline in statutory earnings and modest realized capital losses that affected net income during the first quarter, despite an overall increase in revenue, the report said.
5 per share, which it attributed to realized capital losses and restructuring costs.
But realized capital losses on investments (not included in net investment income) fell to $8 billion in 2009 from $19.
TOP COMPANIES MAXIMIZED NET realized capital gains and minimized realized capital losses in 2005 over 2004, according to annual statement filings.
Fitch estimates that realized capital losses were $3 billion in 2003, down significantly from $12 billion in 2002.
However, negative rating actions could occur if there was a considerable decline in absolute or risk-adjusted capital, an increase in credit impairments or realized capital losses, significant margin compression in interest-sensitive business lines or considerable deterioration in the financial strength of Allianz SE.
5 million for first quarter 2012 reflects net realized capital losses of $10.
3 million for first quarter 2011 reflects net realized capital losses of $52.
Despite the realized capital losses suffered in 2008, net investment income also has been a steady contributor to equity.
Teachers Protective has reported continued operating losses and surplus deterioration over the past three years, primarily the result of higher than expected claims, long-term care reserve strengthening and realized capital losses.
The rating affirmations primarily reflect Mutual of Omaha's strong absolute and risk-adjusted capitalization, despite depressed statutory operating earnings and realized capital losses in its general account investment portfolio in recent periods, solid top-line revenue growth within many of its core lines of business, favorable GAAP operating results and moderate financial leverage.