Judge whether a reinsurance strategy is doing its job by tracing its effect through the financial statements and the key metrics built from them.
Free CAS Exam 6-U.S. (Regulation and Financial Reporting) lesson in Reinsurance Accounting Principles. 7 min read, ~1,063 words.
Under statutory accounting, ceded reinsurance is netted: written, earned, and loss reserves all drop by the ceded portion. The ceding commission on ceded unearned premium is an immediate surplus gain, called surplus relief or surplus aid. Recoverables on unpaid losses are netted against reserves; recoverables on paid losses stay an...
Read the full lesson, free →
Worked examples and practice. Free with a free account, no card.
What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- D4
Browse all free Exam 6U lessons or jump into free Exam 6U practice questions.