Revenue Account And Balance Sheet Of Insurance Companies

Insurance regulatory authority regulates the insurance business in india.

Revenue account and balance sheet of insurance companies. Assets and liabilities. Insurance and reinsurance overview 3. The summaries of these accounts are as follows. N accounting rules for insurance and reinsurance companies are not always in line with an economic view n premiums earned vs premiums written.

This includes life insurance companies auto insurance companies companies that sell homeowner s insurance and even companies that sell annuities. B further claims intimated rs. Let s look at the 2005 balance sheet assets of two auto insurers progressive. The revenue models of insurance companies are based on premiums collected from policyholders.

Both the business accounts contain revenue account profit loss accounts and balance sheet in common. C balance sheet form b bs. C further bonus utilised in reduction of premium rs. Balancing sheet act insurance companies are balance sheet driven businesses so we ll start here with the assets.

A claims covered under reinsurance rs. B profit and loss account form b pl. But now final account of general insurance business are required to be prepared as per irda regulations 2002 which consist of. Special accounting part 5 revenue account and balance sheet of a life insurance company.

Accounts of insurance companies are divided into two heads such as final accounts of life insurance and final accounts of general insurance. Pricing of risk by an insurance company. Insurance company consists of. Prepare the revenue account and the balance sheet after taking into account the following.

Page 2 agenda 1. Revenue account policyholders account profit and loss account shareholders account balance sheet receipts and payments account cash flow statement the segmental reports relating to the funds revenue accounts and balance sheet. A revenue account as per form b ra. Insurance company s balance sheet fsi seminar 27 july 2004 guido schätti swiss re.

Any office premises which form part of the assets of a life insurance fund must be treated as an interest earning investment and accordingly in the revenue account for life insurance business a fair rent for the premises must be included under the heading interest dividends and rents and in the revenue account of every class of business for which the premises are used proper charges for the use thereof must be included under the heading expenses of management.