How is the data treated in Parts 2-4 of Schedule P?

• A. Gross of all discounting
• B. Net of reinsurance and net of S&S
• C. Net of taxes
• D. Net of IBNR

Answer: (B)

The data in Parts 2-4 are presented net of reinsurance and net of salvage and subrogation. This means the figures reflect what the insurer actually bears after ceded losses from reinsurers and after any recoveries from salvage and subrogation. Presenting the data net of these items standardizes the information, making it comparable across companies and focusing on the insurer’s net exposure for reserving and development analysis. It is not reporting gross amounts before reinsurance or factoring in taxes or IBNR in these parts.