Statutory Net Income vs Tax Basis Income
It might be a silly question, but when we calculate Statutory Net Income which includes deducting foreign/federal income taxes paid, we are not making any adjustments to losses/EP, Investment Income which is done under TBI right?
If I understand it correctly, the federal income tax portion of Statutory Net Income is = corporate tax * TBI
Comments
I think it's the word 'Net' in Statutory Net Income that's throwing me off. Is the net referring to Net of Taxes or Net of reinsurance?
Federal income tax equation above is correct.
"Gross income" would be synonymous with "revenue," i.e. premium. "Net income" is premium net of loss and expense.
Thanks for the clarification. Removes much of the confusion!
Sure, good luck.