Accounting of premium income
The reinsurance acceptor shall calculate and determine the amount of premium income according to the relevant reinsurance contract, and prepare the following accounting entries:
Debit: reinsurance accounts receivable
Loan: premium income
When receiving the reinsurance bill, the reinsurance acceptor adjusts the reinsurance premium income according to the amount indicated in the bill, and the adjusted amount is included in the current profit and loss: when the adjustment is increased, the reinsurance receivable account is debited and the premium income account is credited; When the adjustment is reduced, make the opposite accounting entry.
Reinsurance expense accounting
Reinsurance recipients shall, in the current period when reinsurance premium income is recognized, calculate and determine reinsurance expenses according to relevant reinsurance contracts, and include them in current profits and losses. The accounting entries are as follows:
Borrow: reinsurance expenses
Loan: reinsurance accounts payable
When receiving the reinsurance bill, the reinsurance acceptor shall adjust the reinsurance expenses according to the amount indicated in the bill, and the adjusted amount shall be included in the current profit and loss: when the adjustment is increased, the reinsurance expenses shall be debited and credited to the reinsurance accounts payable; When the adjustment is reduced, make the opposite accounting entry.
The reinsurer shall, according to the relevant reinsurance contract, calculate and determine the net profit handling fee payable to the original insurer, and take the net profit handling fee as reinsurance expense and include it in the current profit and loss. The accounting entries are as follows:
Borrow: reinsurance expenses
Loan: reinsurance accounts payable
Accounting of reinsurance expenditure
The reinsurance acceptor shall, in the current period when receiving the reinsurance bill, take the reinsurance payment amount indicated in the bill as the reinsurance payment cost and include it in the current profit and loss. The accounting entries are as follows:
Borrow: pay the fee
Loan: reinsurance accounts payable
Accounting of deposits and reinsurance reserves
When the Company has reinsurance business, it shall deduct the reinsurance reserve for the current period according to the amount indicated in the reinsurance business documents, and make the following accounting entries:
Borrow: deposit reserve
Credit: reinsurance accounts receivable
At the same time, the reinsurance cedant indicated in the reinsurance bill shall return the reinsurance reserve withheld in the previous period and make the following accounting entries:
Debit: reinsurance accounts receivable
Loan: deposit reserve
Reinsurance recipients shall, in accordance with the provisions of the reinsurance contract, draw reinsurance reserves on schedule, and the interest shall be included in the current profits and losses. The corresponding accounting entries are as follows:
Debit: reinsurance accounts receivable
Loan: interest income
Reinsurance reserve accounting
The accounting of reinsurance unearned liability reserve, reinsurance outstanding claims reserve, reinsurance life insurance liability reserve, reinsurance long-term health insurance liability reserve and the processing of related reinsurance reserve adequacy test are basically similar to the original insurance business, so they are not repeated here.
Settlement reinsurance account accounting
When closing the account at the end of the period, the ceding company and the subletting company usually offset the balance of the current account before closing the account. According to the different creditor's rights and debts, debit "reinsurance payable" and credit "reinsurance receivable and bank deposits".
Period-end carry-over accounting
At the end of the period, the reinsurer transfers the balance of the profit and loss account to the "current year's profit" account. After the transfer, the profit and loss account should have no balance, that is, debit the "premium income" account and credit the "profit this year" account; At the same time, debit the profit account of this year, and credit the reinsurance expenses, reinsurance payment expenses, unearned liability reserve, outstanding claims reserve, life insurance liability reserve and long-term health insurance liability reserve.