Part 6-Restatement of Balance sheet
I'm having trouble understanding what each of these items are:
Assets
6: Net Recoverables from Reinsurer:
i) What is this "Net" of? Net of liabilities?
ii) How do I interpret the "Net of Ceded" column for this? It's the "Net of ceded amount of the Net recoverables from reinsurers"... what does that mean?
iii) Why is the Net of Ceded "0" for this?
iv) And why is the adjustment "Total liabilities (gross of reins) - Reinsurance recoverables"
thanks.
Comments
"Net Recoverables from Reinsurer" is a "balancing item." It starts out as zero. You make all the adjustments to assets and liabilities that involve reversing reinsurance. At the end, you take the difference of total-asset-adjustment and total-liability-adjustment, and put it into this item.