FINANCIAL STATEMENT GLOSSARY
PROVISIONAL NET INCOME (LOSS) Estimated net income or loss for any calendar or policy period. R RETAINED EARNINGS (ACCUMULATED DEFICIT) The accumulation of provisional net income from all open underwriting years. RETURN OF PREMIUM The amount of loss fund premium and investment income from a commuted year that has been distributed during a specified period of time. RETURN OF PREMIUM PAYABLE The amount of loss fund premium and investment income from commuted years that have not been distributed as of the financial statement date. S STATEMENT OF CASH FLOW The amount of cash generated and used by the captive program during a given period. STATEMENT OF INCOME Measurement of a program’s financial performance over a specific accounting period, assessed by giving a summary of how the program incurs its revenues and expenses. STATEMENT OF PROGRAM EQUITY A summary of the activity in the components of equity, which includes paid-in capital, retained earnings and accumulated other comprehensive income from the prior year end to the current period reported. STOP LOSS A provision in a policy designed to limit a captive participant’s assessment at a given percentage of loss fund earned premium.
STOP LOSS RECEIVABLE Represents the amount of claim activity that is receivable from the insurer for losses that are expected to exceed the stop loss amount. U UNDERWRITING YEAR SUMMARY Measurement of a program’s financial performance for all open underwriting years, inception-to-date, as of the financial statement date. Individual underwriting year summaries are displayed after this overall program summary to show financial performance of each captive participant in each underwriting year. UNEARNED PREMIUMS The portion of written loss fund premiums that are not yet earned as of the financial statement date, which is calculated on the basis of the balance of the policy period for which the coverage(s) is in effect. UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES See “Case Reserves.” UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES The net change in the fair value of the investment portfolio during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains and losses are realized. This gain (loss) is not reflected in provisional net income but as a component of equity.
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