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.
To view/print a quarterly Statement of Operations for a member company, please have your 5 digit NAIC code available and click on the link below:
Click here for a Statement of Operations 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 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 charts of the premium distribution by policy size, click on the link below:
Click here for Premium Distribution Charts
To view/print the list of the Reinsurers of the
Click here for List of Reinsurers
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