P&C-1 Income statement

[Zacktuary]

Hi!

I have two questions for the income statement.

1) In the US, policyholder dividends are subtracted from revenues to have the net income. In the P&C-1, I don't see anything for this. Where are they in the income statement? I know in the BS that they are liabilities, not part of surplus like in the US.

2) The premium deficiency adjustment in underwriting income is the Change in premium deficiency during the year? I just want to make sure I understand it correctly.


That would be a good question: What is the impact of booking a premium deficiency on the income statement?

A: It reduces net income since underwriting income is reduced by the premium deficiency adjustement.