Accounting
Principles and Statement Format
The Pool’s
operations are accounted for on a policy year basis.
All policies with an inception date in calendar year 200X are considered
policy year 200X policies and the related premiums, losses and expenses are
accounted for as policy year 200X business.
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 statements reflect both presentations
and show how cumulative data has been affected by recent events.
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 a policy year. Investment income is allocated to a
policy year based on its prorata share of investable funds.
The individual
member company statements
reflect both quarter-to-date and inception-to-date results for the respective
member company
and the Pool as a whole. The
summary reflects each company's stake in
the Mississippi Pool.
Though the Pool previously discounted its loss reserves, this practice has
been discontinued as of Q1/2020.
Policy/Accident
Year Chart
To view/print the current
Policy/Accident Year Losses Paid & Case Outstanding chart, click here:
Policy/Accident
Year Chart
Statement
of Operations
To view/print the Statement of Operations, click here:
Statement of Operations
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