timed out BattleActs100

Income Statement: Statutory Net Income (easier version)

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Calculate the statutory net income for calendar year CY. (Modeled on 2018.Spring #10)

  current score:
0.000

CY statutory net income
CY written premium (year x) 888,888
CY earned premium (year x)
AY ultimate loss (year x)
change in AY ultimate loss (prior years)

LAE
other U/W
expense
investment
expense
expenses incurred 888,888 888,888 888,888
expenses paid 321 888,888 888,888
net investment income earned 111
net realized capital gains
net unrealized capital gains
net gain from agents' or premium balances charged off
finance & service charges not in premiums
aggregate write-ins for miscellaneous income
dividends to policyholders
dividends to stockholders

U/W income

= EP (current AY loss) (change in prior years' AY loss) LAE (other U/W expense)

investment income

= [ (investment revenue) ] (investment expenses)
= [ (net investment income earned) + (net realized capital gains) ]

other income

= SUM(agents' balances charged off, service fees, aggregate write-ins)

TOTAL NET INCOME

= (U/W income) + (investment income) + (other income)
     (dividends to policyholders)
     (fed/foreign taxes incurred)

Trick 1

SAP uses incurred expenses (not paid expenses)

Trick 2

investment revenue includes realized capital gains but excludes unrealized capital gains

Trick 3

dividends to stockholders is not included as a charge to income (although it does reduce surplus)

Solution:
statutory net income 999,999
U/W income     999,999
investment income     999,999
* other income     999,999
* Don't forget to subtract dividends to policyholders and fed/foreign taxes incurred to get total net income.