Formula sheets

Schedule P one-year development $\;= \text{Incurred}_{t}-\text{Incurred}_{t-1}$ for prior AYs (Part 2)

RBC ratio $\;\dfrac{\text{Total Adjusted Capital}}{\text{Authorized Control Level RBC}}$: $>200\%$ no action; 150–200% Company Action; 100–150% Regulatory Action; 70–100% Authorized Control; $<70\%$ Mandatory Control.

IRIS 11–13 one-year and two-year reserve development to prior surplus (unusual if $>20\%$); estimated current reserve deficiency to surplus ($>25\%$).

Statutory vs GAAP $\;$ SAP expenses acquisition costs immediately (no DAC), non-admits certain assets, and discounts few reserves.

Premium deficiency reserve $\;PDR=\max\!\left(0,\;\text{expected losses}+\text{expenses}-UPR-\text{expected investment income}\right)$