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Incurred Losses Stat vs Tax

Statutory accounting: IL = Paid losses + Change in full value reserves.

Tax accounting: IL = Paid loss + Change in discounted reserves


Why is there adjustment for investment income in RBC

RBC formulas use undiscounted values from AS. This adds extra margins for adverse conditions, which is reflected in RBC requirement in order to avoid being too conservative


5 year historical

-written premium
-balance sheet-->identify components of the change in surplus
-risk based capital
-operating percentages
-one and two year loss development