Reinsurance Accounting: Schedule F

Schedule F, Parts 1-3, disclose a company’s reinsurance transactions for both ceded and assumed business. Parts 4-7 provides the data to compute the provision for reinsurance for recoverables from unauthorized reinsurers and from slow-paying authorized reinsurers, for loss recoverables more than 90 days past due, and for amounts in dispute. Part 8 shows the statutory balance sheet restated to be gross of ceded reinsurance. This paper provides complete documentation of Schedule F, for both reporting companies completing the schedule and regulators using the schedule. Numerical illustrations and examples show the procedures used in each exhibit. The last section of the paper discusses whether Schedule F fulfills the needs of solvency regulators concerned with reinsurance arrangements.