Net Insurance Service Ratio Denominator
Is there an error in the denominator of the NISR? On the one hand the elements are Total Insurance Revenue + Allocation of Reinsurance Premiums. This is the same denominator as the all the net ratios. However, the MSA Format elements are different. For the NISR it says 202209901 + 602559932 whereas for the net ratios it is 202209901 + 201811919.
Is it the case that 602559932 will always equal 201811919?
Comments
Have you tried looking up what 602559932 and 201811919 are referring to in the P&C annual return rather than just looking at the MSA format? The instructions are in the wiki on how to map them to their corresponding locations.
I know that 602559932 refers to page 60.25 of the PC2 (quarterly return), row 599, column 32, which is the total of allocation of reinsurance premiums across all lines of business under net expenses for reinsurance contracts held. It contributes to the calculation of the Insurance Service Result, and would affect the profit and loss statement (20.22) rows 120 and 199.
On the other hand, 201811919 refers to page 20.18 from the PC1 (core financial return), row 119, column 19, which is the total CHANGE for the allocation of reinsurance premiums paid in the current period. I think this is where I'm not understanding how this amount differs from 602559932, and I'm not sure exactly how it flows through to the other pages in the returns.
Yup you are right. I will mention that both files are the quarterly version of the files and they should be the same, but the strange thing is when you check the P&C validation file, it is not stated that 201811919 = 602559932. I don't really know the intricacies of what is going on here with regards to the inconsistency