FINANCIAL STATEMENTS OF LIFE INSURANCE COMPANIES
Financial Statements of Life Insurance Companies include preparation of Revenue account, profit and loss account and balance sheet. The formats of preparing these are provided by the Insurance Regulatory & Development Authority Regulations, 2002. The performa of these statements are as follows:
REVENUE ACCOUNT
FORM A- RA
Name of the Insurer:
Registration No. and date of registration with IRDA
REVENUE ACCOUNT FOR THE YEAR ENDED 31ST MARCH,20….
Policyholder’s Account (Technical Account)
| PARTICULARS | SCHEDULE NO. | CURRENT YEAR | PREVIOUS YEAR |
| Premium earned net Premium Reinsurance ceded Reinsurance accepted Income from investments Interest, dividends and rent- gross Profit on sale/ redemption of investments (Loss on/ redemption of investments) Transfer/ Gain on revaluation/ change in fair value* Other Incomes (to be specified) TOTAL (A) | 1 | ||
| Commission Operating expenses related to insurance business Provision for doubtful debts Bad debts written off Provision for tax Provision (other than taxation) -For dimunition in the value of investments (net) -others (to be specified) TOTAL (B) | 2 3 | ||
| Benefits paid (Net) Interim bonuses paid Changes in valuation of liability in respect of life policies Gross Amount ceded in reinsurance Amount accepted in reinsurance TOTAL (C) | 4 | ||
| SURPLUS/ (DEFICIT) (D)= (A)-(B)-(C) APPROPRIATIONS Transfer to shareholder’s accounts Transfer to other reserves Balance being funds for future appropriations TOTAL (D) |
NOTES:
PROFIT AND LOSS ACCOUNT
FORM A-PL
Name of the Insurer:
Registration No. and date of registration with IRDA
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 20…..
Shareholder’s Account (Non-technical Account)
| PARTICULARS | SCHEDULE NO. | CURRENT YEAR | PREVIOUS YEAR |
| Amounts transferred from/ to the policyholder’s account (Technical Account) Income from investments Interest, dividends and rent- gross Profit on sale/ redemption of investments (Loss on/ redemption of investments) Other Incomes (to be specified) TOTAL (A) | 1 | ||
| Expenses other than those directly related to the Insurance business Bad debts written off Provision (other than taxation) -For dimunition in the value of investments (net) -Provision for doubtful debts -Others (to be specified) TOTAL (B) | |||
| Profit/ (Loss) before tax Provisions for taxation Profit/ (Loss) After tax | |||
| APPROPRIATIONS Balance at the beginning of the year Interim dividends paid during the year Proposed final dividend Dividend distribution tax Transfer to reserves/ other accounts (to be specified) Profit carried over to the balance sheet |
GUIDELINES REGARDING PREPARATION OF REVENUE ACCOUNT AND PROFIT AND LOSS ACCOUNT
- Premium income received from business concluded in and outside India shall be separately disclosed.
- Reinsurance premiums whether on business ceded or accepted are to be brought into account at gross value.
- Claims incurred must include:
- Claims paid
- Specific claims settlement costs
- Fees and incomes connected with claims shall be included in the claims.
- Income from rent shall include only the realized rent. It shall not record any notional rent.
BALANCE SHEET
FORM A- BS
Name of the Insurer:
Registration No. and date of registration with IRDA
BALANCE SHEET AS AT 31ST MARCH, 20…..
| PARTICULARS | SCHEDULE | Current Year | Previous Year |
| SOURCES OF FUNDS Shareholder’s Funds: Share Capital Reserve and Surplus Credit/ (Debit) Fair value change account Sub-total Borrowings Policyholder’s Funds: Credit/ (Debit) fair value change account Policy Liabilities Insurance Reserves Provisions for linked liabilities Sub-total Funds for future appropriations TOTAL | 5 6 7 | ||
| APPLICATION OF FUNDS Investments: Shareholders’ Policyholders’ Assets held to cover linked liabilities Loans Fixed assets Current assets: Cash and Bank Balance Advances and other assets Sub-total (A) Current liabilities Provisions Sub-total (B) Net Current Assets (C)= (A)-(B) Miscellaneous Expenditure (to the extent not written off or adjusted) Debit Balance In Profit and Loss Account (Shareholders’ Account) TOTAL | 8 8A 8B 9 10 11 12 13 14 15 |
GUIDELINES FOR PREPARATION OF BALANCE SHEET
- Investments in subsidiary/ holding companies/ joint ventures and associates shall be separately disclosed, at cost.
- Short term loans shall include those, which are repayable within 12 months from the date of the balance sheet. Long term loans shall be the loans other than short-term loans.
- Provisions against non-performing assets shall be shown separately.
- Loans considered doubtful and the amount of provision created against such loans shall be disclosed.
- Investments made out of catastrophe reserves should be shown separately.
- No items shall be included under the head ‘Miscellaneous Expenditure’ and carried forward unless:
- Some benefit from the expenditure can reasonably be expected to be received in future.
- The amount of such benefit is reasonably determinate.
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