This course introduces you to expenses and expense reporting for property & casualty companies. You will receive an overview of the major expense items for property and casualty companies and review Statutory and GAAP accounting and reporting detail. The accounting for acquisition costs and the differences between Statutory and GAAP are also covered.

Learning Objectives

• List and describe the three major types of P&C insurance expenses
• Identify how different expenses are reported in the Annual Statement
• Identify how expenses are reported in the GAAP income statement
• Define acquisition costs and distinguish the difference between Statutory and GAAP accounting

Outline

• Property and casualty insurance expense overview
  • The Income Statement
  • Major P&C insurance expenses
    • Loss Adjustment Expenses (LAE)
    • Underwriting/acquisition/other expenses
    • Investment expenses
    • Miscellaneous expenses
    • Federal income taxes
• Categories of P&C insurance expenses
  • Loss Adjustment Expenses (LAE)
  • Underwriting/acquisition/other expenses
  • Investment expenses
• Expense reporting
  • Statutory vs. GAAP
  • Statutory
    • Regulatory exhibits
    • Annual Statement Part 3 format and detail
    • Management fees
    • Reinsurance
    • Annual Statement Page 4 income statement
  • GAAP
    • Comparison to statutory
    • Income statement detail
• Acquisition cost overview
  • Definition
  • Statutory accounting considerations
  • GAAP accounting considerations
  • Reinsurance ceding commission