Financial reporting by insurance companies
31 Mar 2005
Because of concerns that some insurance companies may have entered into reinsurance transactions for the purpose of manipulating capital and income, the New York State Insurance Department is requiring the chief executive officers of insurance companies it regulates to attest, under penalty of perjury, that with respect to cessions under any reinsurance contract: there are no separate written or oral agreements that would, under any circumstances, reduce, limit, mitigate, or otherwise affect any actual or potential loss to the parties under the reinsurance contract; and for each such reinsurance contract, the reporting entity has an underwriting file documenting the economic intent of the transaction and the risk transfer analysis evidencing the proper accounting treatment, which is available for review. Click for (PDF 13k) and (PDF 29k). .
Because of concerns that some insurance companies may have entered into reinsurance transactions for the purpose of manipulating capital and income, the New York State Insurance Department is requiring the chief executive officers of insurance companies it regulates to attest, under penalty of perjury, that with respect to cessions under any reinsurance contract:
- there are no separate written or oral agreements that would, under any circumstances, reduce, limit, mitigate, or otherwise affect any actual or potential loss to the parties under the reinsurance contract; and
- for each such reinsurance contract, the reporting entity has an underwriting file documenting the economic intent of the transaction and the risk transfer analysis evidencing the proper accounting treatment, which is available for review.