How is intercompany pooling impacting the A.S.?

• A. Schedule P shows the lead company's results.
• B. U&IE shows the direct business written by each company; amounts ceded to the lead; portion of the pool assumed by affiliates.
• C. Schedule F shows only external reinsurance.
• D. Lead company reports all direct business in Part 1.

Answer: (B)

In an intercompany pooling, the presentation on the annual statement is structured to show how each member of the pool contributes and shares risk. The Underwriting and Investment Exhibit (U&IE) is the place where you see the direct business written by each company, the portion of that business ceded to the pool leader, and the portion of the pool shared or assumed by other affiliates. This layout keeps each member’s own writings separate while revealing how much risk is ceded to the lead and how the pool’s risk is distributed among the affiliates. Schedule P and Schedule F relate to external reinsurance and reinsurance activity outside the pool, and the lead does not simply report all direct business in one part of the statement; the pooling mechanics are shown on the U&IE.