Financial Reporting in P&C Insurance

Total UW Expenses - An insurance company’s expenses related to acquisition of the business and general expenses, other than those associated with loss adjustment or investment activities.

STAT Expenses – Total acquisition costs plus underwriting expenses excluding GAAP expenses. Statutory expenses excludes the deferral of expenses as this is not a statutorily accepted accounting principle.

GAAP Expenses – Total acquisition costs plus underwriting expenses.

GAAP Gain/Loss - Net earned premiums less claims and claims expenses, acquisition expenses and other underwriting expenses

STAT Gain Loss - Net earned premiums less claims and claims expenses, acquisition expenses and other underwriting expenses. Excludes GAAP expenses such as Deferred acquisition costs.

Bulk reserve – This reserve represents the estimated deficiency in the aggregate of case reserves for known claims. If forced to assign it to either case reserves or IBNR reserves, some will assign it to case reserves, as it represents reserves for claims that have already been reported. Others will assign it to IBNR, as it represents an aggregate calculation above claim adjuster estimates not reliably assignable to an individual claim.

Gross Earned Premium

Net Written Premium

Net Earned Premium

Gross Written Premium

Administrative Expenses

BULKS

Losses Incurred

AREA/REG