CAS Sample Question 10

do you mean that the Net Expense from Reinsurance Contracts Held should be -10,000+2,500+20,000 = 12,500 instead?
so typically we should see negative Net Expense from Reinsurance Contracts Held like -30,000+2,500+20,000 = -7,500?

Comments

  • yes to question one
    It depends to question 2, whether the reinsurance reflects a net cost or net gain. Basically the allocation of reinsurance premiums (premiums paid to reinsurers) should have an opposite sign from the reinsurance recoverables

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