FINANCIAL STATEMENTS OF LIFE INSURANCE COMPANIES

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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