This excerpt taken from the SGZ 10-K filed Mar 1, 2006.
Accident Year - Accident year reporting focuses on the cost of the losses that occurred in a given year regardless of when reported. These losses are calculated by adding all payments that have been made for those losses occurring in a given calendar year (regardless of the year in which they were paid) to any current reserve that remains for losses that occurred in that given calendar year. For example, at December 31, 2005, the losses incurred for the 1999 accident year would be the payments made in years 1999 through 2005 relating to the losses that occurred in 1999 plus the reserve for 1999 occurrences remaining to be paid as of December 31, 2005.
This excerpt taken from the SGZ 10-K filed Mar 2, 2005.
Accident Year - Accident year reporting focuses on the cost of the losses that occurred in a given year regardless of when reported. These losses are calculated by adding all payments that have been made for those losses occurring in a given calendar year (regardless of the year in which they were paid) to any current reserve that remains for losses that occurred in that given calendar year. For example, at December 31, 2004, the losses incurred for the 1998 accident year would be the payments made in years 1998 through 2004 relating to the losses that occurred in 1998 plus the reserve for 1998 occurrences remaining to be paid as of December 31, 2004.
Agent (Independent Insurance Agent) - an insurance consultant who recommends and markets insurance to individuals and businesses; usually represents several insurance companies. Insurance companies pay agents commissions for business production.
Alternative Market - any risk transfer mechanism where the customer assumes some or all financial responsibility for an insurable exposure.
Catastrophe Loss - a severe loss, either natural or man-made, usually involving, but not limited to, many risks from one occurrence such as fire, hurricane, tornado, earthquake, windstorm, explosion, hail, severe winter weather, and terrorism.
Combined Ratio - a measure of underwriting profitability determined by dividing the sum of all GAAP expenses (losses, loss expenses, underwriting expenses, and dividends to policyholders) by GAAP net premiums earned for the period.
Generally Accepted Accounting Principles (GAAP) - accounting practices used in the United States of America set by the Financial Accounting Standards Board. Public companies follow these practices when preparing financial statements.
Incurred But Not Reported (IBNR) Reserves - reserves for estimated losses which have been incurred by insureds but not yet reported to the insurer.
Loss Expenses - expenses incurred in the process of evaluating, defending and paying claims.
Losses and Loss Expense Ratio - the ratio of net losses and loss expenses to net premiums earned.
Losses and Loss Expense Reserves - the amount of money an insurance company expects to pay for claim obligations and related expenses resulting from losses which have occurred and that are covered by insurance policies it has sold.
Managed Care - a method of controlling health care costs by using a network of medical professionals to provide care consistent with cost-efficient guidelines and protocols.
Preferred Provider Organization (PPO) - a network of physicians, hospitals and other medical providers that have agreed, by contract, to discount their rates to members. Participants are free to seek care from any physician or provider within the network, including specialists without a referral. Members may also access non-contracted providers, but at a higher out-of-pocket cost.
Premiums Earned - earned premiums refer to premiums an insurance company has recorded as revenues during a specific accounting period. For example, a one-year policy sold January 1, would produce just three months' worth of "earned premium" in the first quarter of the year.
Premiums Written - the cost of insurance coverage, often described as "written." Written premiums refer to premiums for all policies sold during a specific accounting period.