NAIC BLANKS (E) WORKING GROUP
Blanks Agenda Item Submission Form
DATE:
02/20/2015
FOR NAIC USE ONLY
Agenda Item # 2015-04BWG
Year
2015
Changes to Existing Reporting
[X ]
New Reporting Requirement
[ ]
CONTACT PERSON:
Aaron Brandenburg
TELEPHONE:
816-783-8271
EMAIL ADDRESS:
abrandenburg@naic.org
REVIEWED FOR ACCOUNTING
PRACTICES AND PROCEDURES IMPACT
ON BEHALF OF:
Title Insurance Financial Reporting (C)
Working Group
No Impact [ X ]
Modifies Required Disclosure [
DISPOSITION
NAME:
Gordon Hay
TITLE:
Sr. Casualty Actuarial Examiner
AFFILIATION:
Nebraska Department of Insurance
ADDRESS:
[
]
[
]
[ X ]
[
]
[
]
[
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[
]
]
Rejected For Public Comment
Referred To Another NAIC Group
Received For Public Comment
Adopted Date
Rejected Date
Deferred Date
Other (Specify)
BLANK(S) TO WHICH PROPOSAL APPLIES
[X ]
[X ]
ANNUAL STATEMENT
INSTRUCTIONS
[
]
[X ]
QUARTERLY STATEMENT
CROSSCHECKS
[
[
[
[
[
Property/Casualty
Fraternal
] Life and Accident & Health
] Separate Accounts
] Other Specify
Anticipated Effective Date:
]
]
[X ]
[
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[X ]
BLANK
Health
Title
Annual 2015
IDENTIFICATION OF ITEM(S) TO CHANGE
Add one year and two year loss development in the Title Insurance Five Year Historical Data Exhibit.
REASON, JUSTIFICATION FOR AND/OR BENEFIT OF CHANGE**
1.
2.
3.
4.
5.
The Property and Casualty Five Year Historical Data Exhibit contains data related to one year and two year development within it.
Adding the data to the Title Blank will increase consistency between the P&C and Title Blanks.
Title insurance policy year loss emergence is typically slower than accident year emergence in virtually any P&C reserving segment.
Known Claims Reserve development on the report year basis from Schedule P Part 3 will provide a leading indicator for Schedule P
Reserve development on the policy year basis from Schedule P Part 2.
These statistics are easily calculated from required information.
Historical development studies have shown wide variations over time and between companies in the adequacy of Title insurers’
Schedule P and Known Claims Reserves.
All executives who sign the Title Annual Statement and all Title insurance Appointed Actuaries should be aware of the development
patterns from their Companies’ historically booked Schedule P and Known Claims Reserves.
NAIC STAFF COMMENTS
Comment on Effective Reporting Date:
Other Comments:
______________________________________________________________________________________________________________
** This section must be completed on all forms.
Revised 6/13/2009
© 2015 National Association of Insurance Commissioners
53
ANNUAL STATEMENT INSTRUCTIONS – TITLE
FIVE-YEAR HISTORICAL DATA
This exhibit is a display of key statistics extracted from the annual statements of the current year and each of the four
preceding years. It displays recent trends in the movement of sales, in force, surplus, and other financial data. For the most
part, each section of five-year historical data references data from a specific page in the annual statement, with certain “key”
lines having been extracted from that page. Page and line references for the current year are shown on the Exhibit. If a page
or line reference is different for a prior year or years, it is shown below. Percentages are shown to one decimal place
(e.g., 17.6).
All figures taken from or developed from annual statements of corresponding years.
The derivation of each line on Five-Year Historical Data is indicated in the annual statement blank except that Lines 42 and
43 should be based upon the book/adjusted carrying value of the asset, which is consistent with the other affiliated
investments.
Reporting entities that were part of a merger should refer to SSAP No. 3, Accounting Changes and Corrections of Errors, for
guidance on restatement of prior-year numbers and footnote disclosure requirements for this exhibit. Complete the footnote
only if reporting entity was a party to a merger in the current reporting period.
Source of Direct Title Premiums Written
All years .................................. Operations and Investment Exhibit, Part 1A
Line 1
– Direct Operations
All years .................................. Part 1A, Line 1, Column 1
Detail Eliminated To Conserve Space
Other Percentages
All years .................................. (Line item divided by Part 1B, Line 1.4 x 100.0)
Line 64 – Losses and Loss Expenses Incurred to Net Premiums Written
All years .................................. Page 4, Line 4
Line 65 – Operating Expenses Incurred to Net Premiums Written
All years .................................. Page 4, Line 5
One Year Schedule P Part 2 Development (000 omitted)
Line 66 – Development in Estimated Losses and ALAE on Policies Effective Before Current Year
All years .................................. Schedule P, Part 2 Summary, Line 22, Column 11
Line 67 – Percent of Such Development to Policyholders’ Surplus of Prior Year-End
All years .................................. Five Year Historical, Line 66 divided by Page 4, Line 16, Column 1 x 100.0
© 2015 National Association of Insurance Commissioners
54
One Year Schedule P Part 3 Development (000 omitted)
Line 68 – Development in Estimated Losses and ALAE for Claims Reported Before Current Year
All years .................................. Schedule P, Part 3 Summary, Line 12, Column 11
Line 69 – Percent of Such Development to Policyholders’ Surplus of Prior Year-End
All years .................................. Five Year Historical, Line 68 divided by Page 4, Line 16, Column 1 x 100.0
Two Year Schedule P Part 2 Development (000 omitted)
Line 70 – Development in Estimated Losses and ALAE on Policies Effective Before Prior Year-End
All years .................................. Schedule P, Part 2 Summary Line 22, Column 12
Line 71 – Percent of Such Development to Reported Policyholders’ Surplus of Second Prior Year-End
All years .................................. Five Year Historical, Line 70 divided by Page 4, Line 16, Column 2 x 100.0
Two-Year Schedule P Part 3 Development (000 omitted)
Line 72 – Development in Estimated Losses and ALAE for Claims Reported Before Prior Year-End
All years .................................. Schedule P, Part 3 Summary, Line 12, Column 12
Line 73 – Percent of Such Development to Reported Policyholders’ Surplus of Second Prior Year-End
All years .................................. Five Year Historical, Line 72 divided by Page 4, Line 16, Column 2 x 100.0
© 2015 National Association of Insurance Commissioners
55
ANNUAL STATEMENT BLANK – TITLE
FIVE–YEAR HISTORICAL DATA
Show amounts in whole dollars only, no cents; show percentages to one decimal place, i.e. 17.6.
1
2015
2
2014
3
2013
4
2012
5
2011
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Source of Direct Title Premiums Written (Part 1A)
1.
2.
3.
4.
Direct operations (Part 1A, Line 1, Col. 1) .......................................................................................
Non-affiliated agency operations (Part 1A, Line 1, Col. 2) ..............................................................
Affiliated agency operations (Part 1A, Line 1, Col. 3) ................................................
Total ...............................................................................................................................................
Detail Eliminated To Conserve Space
FIVE–YEAR HISTORICAL DATA
(Continued)
1
2015
2
2014
3
2013
4
2012
5
2011
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Capital and Surplus Accounts (Page 4)
47.
48.
49.
50.
Net unrealized capital gains or (losses) (Line 18) ................................................
........................
Change in nonadmitted assets (Line 21) ..............................................................
........................
Dividends to stockholders (Line 28) ....................................................................
........................
Change in surplus as regards policyholders for the year (Line 31) .......................
........................
Detail Eliminated To Conserve Space
Other Percentages
(Line item divided by Part 1B, Line 1.4 x 100.0)
64.
65.
Losses and loss expenses incurred to net premiums written
........................
(Page 4, Line 4) ...................................................................................................
Operating expenses incurred to net premiums written (Page 4, Line 5)
.......................
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One Year Schedule P Part 2 Development (000 omitted)
66.
67.
Development in estimated losses and ALAE on policies effective
before current year (Schedule P, Part 2 Line 22, Col. 11) ................................
........................
Percent of such development t o policyholders' surplus of prior year
end (Line 66 above divided by Page 4, Line 16, Col. 1 x 100.0) ..................
........................
One Year Schedule P Part 3 Development (000 omitted)
68.
69.
Development in estimated losses and ALAE for claims reported before
current year (Schedule P, Part 3, Line 12, Col. 11) ..............................................
........................
Percent of such development to policyholders' surplus of prior year end
(Line 68 above divided by Page 4, Line 16, Col. 1 x 100.0) ................................
........................
Two Year Schedule P Part 2 Development (000 omitted)
70.
71.
Development in estimated losses and ALAE on policies effective
before prior year-end (Schedule P, Part 2, Line 22, Col. 12) .........................
........................
Percent of development of losses and loss expenses incurred to reported
policyholders' surplus of second prior year end (Line 70 above divided
by Page 4, Line 16, Col. 2 x 100.0) ....................................................................
........................
63.
Two Year Schedule P Part 3 Development (000 omitted)
72.
73.
Development in estimated losses and ALAE for claims reported before
prior year-end ( Schedule P, Part 3, Line 12, Col. 12) .......................................
........................
Percent of such development to policyholders' surplus of second prior
year-end (Line 72 above divided by Page 4, Line 16, Col. 2 x 100.0)
NOTE: If a party to a merger, have the two most recent years of this exhibit been restated due to a merger in compliance with the disclosure
requirements of SSAP No. 3, Accounting Changes and Correction of Errors?
If no, please explain ............................................................................................................................................................................
.............................................................................................................................................................................................................
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© 2015 National Association of Insurance Commissioners
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Yes [ ]
No [ ]