Unearned Premium Reserve


Also found in: Acronyms.

Unearned Premium Reserve

An account into which an insurer deposits unearned premiums, which are paid on insurance policies before they are due. For example, one may pay six months' worth of premiums in January instead of paying each month from January to June. Unearned premiums are listed as liabilities on an insurer's balance sheet and regulators thus require insurance companies to maintain reserves to refund these amounts if necessary.
References in periodicals archive ?
832-4(a)(7), Example 2(ii), the treatment will require taxpayers to include advance premiums in the unearned premium reserve in excess of amounts actually collected by the taxpayer (i.
As with most automobile warranty and vehicle service writers, loss reserves are generally not material, with the bulk of liabilities in the unearned premium reserves of policies offering multi-year coverage.
5) Addition of the after-tax value of the unearned premium reserve on financial guaranty contracts in excess of expected loss, net of prepaid reinsurance premiums; and
Unearned premium reserve (UPR) less pre-paid reinsurance premiums, after tax.
The Company's increase in book value and net after-tax unearned premium reserve during the quarter were the primary drivers of the growth in adjusted book value.
Adjusted book value, which is a non-GAAP financial measure, is defined as shareholders' equity (book value) plus the after-tax value of the unearned premium reserve net of prepaid reinsurance premiums, the after-tax value of unearned premium on credit derivatives net of prepaid reinsurance premiums and the after-tax net present value of estimated future installment premiums in force, less future ceding commissions, discounted at 6%, less after-tax deferred acquisition costs.
The reduction was mainly due to the increased claims in fire, medical and marine insurances in Bahrain and Kuwait and also due to the increase in unearned premium reserves in motor insurance.
Insurers that qualify for IRC Section 833 tax treatment can deduct 25 of their claims and 100 percent of their unearned premium reserves from their taxable income.
Tower will also buy from ANV unearned premium reserves related to the business, it said.
The loss reserves and unearned premium reserves prior to the sale of Essentia will stay with OneBeacon to be runoff.
This payment primarily represents existing loss reserves and unearned premium reserves for the portfolio, and therefore will not have a material impact on Radian's consolidated financial statements or Radian Asset's statutory capital position.
Earnings in 2012 were negatively impacted by an increase in doubtful debt provisions and an adjustment in unearned premium reserves to comply with the draft UAE insurance regulation and the International Financial Reporting Standards (IFRS).