Read, build, and calculate from the primary financial statements (balance sheet, income statement, cash flows, capital and surplus, notes) to size up an insurer's financial health.

Free CAS Exam 6-U.S. (Regulation and Financial Reporting) lesson in Financial Reporting, Taxation, and Professional Responsibilities of the Actuary. 15 min read, ~2,271 words.

Statutory surplus (policyholders' surplus) equals admitted assets minus liabilities; nonadmitted assets are excluded because they are not readily marketable to meet policyholder obligations. SAP is conservative, not a liquidation basis. The four core statements are the balance sheet (assets, liabilities, surplus), the statement of income, the capital and surplus account...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• C1

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