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.
Total liabilities decreased by approximately $63 million from December 31, 2015 to $21.7 billion as of March 31, 2016, primarily as a result of (i) lower unearned premium reserves
; (ii) lower VIE liabilities as a result of debt repurchases in the first quarter of 2016; and (iii) lower payable for securities, partially offset by higher derivative liabilities from decreases in interest rates and receipt of R&W recoveries previously booked as contra-liabilities in loss and loss expense reserves.
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.
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).
The loss reserves and unearned premium reserves
prior to the sale of Essentia will stay with OneBeacon to be runoff.
Combining insurers' $511.5 billion in policyholders' surplus at year-end 2009 with their $552.9 billion in loss and loss adjustment expense reserves and $197.5 billion in unearned premium reserves
, insurers had almost $1.3 trillion in funds available to fulfill their promises to policyholders and finance new coverage."
The insurance industry invests surplus, unearned premium reserves
and loss reserves.