How to Prepare for Reading financial reporting
- P&C Annual Statement – reviewing net income, assets liabilities (pages 20.10, 20.20, 20.30) – Everything related reporting comes from here. Many other papers rely on a solid understanding of the pages.
- Once you’re familiar with the general calculations, categories and definitions from (20.10 to 20.30), you can progress onto the key calculations: unpaid claims & premiums liabilities.
- After this it’ll help to learn why we have Accumulated Other Comprehensive Income in the Equity (but not assets)
- Once completed learn all the important MSA ratios (since we’re now familiar with all the pieces).
- Now that you’re an accountant, you can proceed to reviewing all the re-insurance papers including (Blanchard & Klann [CAS]).
- Don’t forget: Commutation, Excess (deficiency) ratio of net claim liabilities & Earthquake Reserves