Claims equalisation reserve: related pages

the amounts insurance companies set aside from profits to cover claims.

This is an estimate of the economic worth of a life insurance business. In essence, it is the present value of distributable earnings which is made up of two components.

Unexpired risk reserve

A reserve created if the unearned premium reserve is felt to be inadequate.

Unearned premium reserve

the total amount of premiums written but not yet earned.