Financial accounting examples for insurance premiums in P & C Insurance

Income statement year 1

Balance sheet, end year 1 (liabilities)

Simplified example with numbers

• The insurance company has written two insurance contracts with total premiums of 45 and 40.
• The first contract period is 12 months beginning at 1.9. in year 1 and ending 31.8. in year 2.
• The second contract period is 12 months beginnig at 1.7. year 2 and ending 30.6. year 3.