Cheat Sheet Clarification - Comparing Sch P and Sch F
On page 11 of the cheat sheet, the second bullet states "Important to actuaries because it shows net reserves (Schedule P does not include assumed or ceded reinsurance".
But looking at Schedule P (at least part 1), ceded and assumed amounts appear to be included in the net calculations of both net losses and net earned premiums.
Can you help clarify what is meant by the above statement?
Comments
I see what you mean and we will edit the second bullet point to make it clearer.
While Schedule F provides a focus on net reserves, Schedule P does actually include ceded reinsurance reserves, particularly in terms of reporting loss reserves. Schedule P helps track how losses are distributed between the insurer and reinsurers, but it is Schedule F that digs into reinsurance-specific information.
Okay, that helps. Thank you!