How to Prepare for Reading financial reporting

  1. 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.
  2. 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.
  3. After this it’ll help to learn why we have Accumulated Other Comprehensive Income in the Equity (but not assets)
  4. Once completed learn all the important MSA ratios (since we’re now familiar with all the pieces).
  5. Now that you’re an accountant, you can proceed to reviewing all the re-insurance papers including (Blanchard & Klann [CAS]).
  6. Don’t forget: CommutationExcess (deficiency) ratio of net claim liabilities & Earthquake Reserves