1.832-4(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.e., the taxpayer received the first quarterly installment of $125 in December 1998 for a policy that begins in January 1999 and was required to include the full year's premium of $500 both in gross premiums written and in the unearned premium reserve
for the year ended December 1998).
Other benefits include more effective business intelligence capabilities that provide timely, reliable and all-inclusive financial information for trends, profitability analysis and exposure, in addition to account balance, unearned premium reserve
and claims reserve.
In calculating taxable income, all rules applicable to domestic insurers apply, e.g., discounting of reserves, (see IRC [Section] 832, reduction of unearned premium reserve
increment, IRC [Section] 832(b)(4) ).
A quota-share cession, with a ceding commission that captures a portion of the yearend unearned premium reserve
, would give the ceding company some statutory expense and surplus "relief."
Around this time, New York fire companies also were required for the first time to show the approximate equivalent of an unearned premium reserve
as a liability, namely "the amount required to safely reinsure all outstanding risks." Barnes' discoveries also led to the establishment of a New York state Department of Insurance on Jan.
These are: a) the unearned premium reserves
(UPR); b) loss and loss adjustment (Loss Reserves); and c) 'Incurred but not reported' reserves.
At closing, Enstar assumed approximately USD 1.3bn of net loss and loss adjustment expense reserves and unearned premium reserves
A provision of the deal calls for Tokio Marine to provide a $500 million adverse development cover to RenRe, protecting TMR's stated reserves at closing (including unearned premium reserves
Enstar will assume approximately $1.3 billion of net loss and loss adjustment expense reserves and unearned premium reserves
The data on underwriting gains and losses, investment income, loss ratio, underwriting expense ratio, combined ratio, net premiums written, unearned premium reserves
, and loss reserves were gathered from the Best's Aggregates and Averages--Property and Casualty.
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.