Assigned Risk Reinsurance Pool
The
Indiana Workers Compensation Assigned Risk Reinsurance Pool’s operations are
accounted for on a policy year basis.
That is, all policies with an inception date in calendar year 200X are
considered policy year 200X policies,
and all related premiums, losses and expenses are accounted for as policy year
200X business, regardless of when they are collected/paid. A policy year’s operating results evolve over
time as policies written late in the calendar year expire and work their way
through the final audit process. Consequently, a policy year’s operating
results are usually reported on an inception-to-date basis rather than on the
basis of transactions occurring during a given time period. Since there are some who prefer to see the
transactions that have occurred during the most recent reporting period, the
Pool’s Statements of Operations reflect both presentations and show how
cumulative data has been affected by recent events.
The
Pool’s Statements of Operations are prepared in accordance with statutory
accounting principles which differ from generally accepted accounting
principles (GAAP), primarily in the treatment of loss reserve discounts and
prepaid acquisition and servicing expenses.
A financial statement prepared in accordance with GAAP would reflect a
discount of each policy year’s outstanding loss reserves to their net present
value as of the statement date, and acquisition and servicing expenses paid on
written but unearned premium would be reported as a prepaid expense (i.e., an
asset) rather than a current period expense.
Because a substantial portion of a policy year’s incurred losses will
initially be unpaid and a substantial portion of written premiums will initially
be unearned, this difference in accounting treatment will result in a
substantial difference in the net income reflected on a statutory statement vs.
a GAAP statement (with the statutory statement reflecting less net income than
the GAAP statement). These differences
are especially severe for the first two calendar years of a policy year. Because these differences are timing
differences, however, they will eventually disappear, and the ultimate net
income of a policy year will be what it actually is – regardless of accounting
method.
The
presentation of the Pool’s accounts generally follows the annual statement
format. Investment income is net of
investment expense and reflects income earned on the cash flow of the
respective policy year. The investment income earned during a calendar quarter
is allocated to a policy year based on that policy year’s prorata share of
investable funds during the calendar quarter.
The individual member company statements reflect both quarter-to-date
and inception-to-date results for both the member company and the Pool as a
whole. The summary report reflects the
member’s stake in the Pool.
To
complete your annual statements for 2005 and thereafter, the Indiana Pool NAIC
number is AA-9991414. There is no FEIN for the Indiana Pool that applies for
annual statement reporting. Prior to 2005, you would have used the number for
the National Workers Compensation Reinsurance Pool (NWCRP) which is AA-9992118.
The Statements
of Operations are in PDF format and require Acrobat Reader for viewing or
printing.
Click here for a Multi-Page Statement of Operations for a
Member Company
Click here for a 1-Page Statement of Operations for a Member Company
Click here for the annual Participation Form for a Member
Company
To view/print the current quarterly Statement of Operations without any member company information, click on the link below:
Click here for the current quarterly Statement of Operations
To view/print the prior year end Statement of Operations without any member company information, click on the link below:
Click here for the prior year end Statement of Operations
To view/print the current Policy/Accident Year Losses Paid & Case Outstanding chart, click on the link below:
Click here for the Policy/Accident Year Chart
To view/print the combined Premium and Claims distribution charts, click on the link below:
Combined Premium and Claims Distribution Charts
To view/print the list of securities held by the Trust as of December 31, click on the link below and select save:
Click here for List of Securities