Losses in Liabilities (in Balance Sheet) - 2012 Fall Q18

darrenteo

Hi, I was looking at this question on constructing a Balance sheet, and looked at how they calculated the Losses in the Liabilities section. I was wondering why do we not add in the Paid Losses? From the Liberty Mutual BS, it seems that the losses are coming from Part 2A, which I thought is the 'Ultimate Incurred Loss', which includes Paid losses?

Thanks.

Regards,
Darren

darrenteo

Hi,

Update: I realized what happened. Part 2A in the Liberty Mutual is referring to the UIE table, which are unpaid losses. Thanks!

Staff - AC

Sure, good luck.