View source for Definition:Quarterly statement

📋 '''Quarterly statement''' is a standardized financial report that [[Definition:Insurance carrier | insurance carriers]] file with state [[Definition:Insurance regulator | regulators]] at the end of each calendar quarter, providing a snapshot of the company's financial condition, operating results, and [[Definition:Reserve | reserve]] positions. In the United States, these filings follow templates prescribed by the [[Definition:National Association of Insurance Commissioners (NAIC) | National Association of Insurance Commissioners (NAIC)]] and serve as the primary mechanism through which regulators monitor an insurer's ongoing [[Definition:Solvency | solvency]] and compliance. Unlike annual statements, which undergo a full [[Definition:Actuarial opinion | actuarial opinion]] and audit process, quarterly statements are unaudited but still carry significant regulatory weight.

⚙️ Each quarterly filing captures key data across several schedules, including [[Definition:Admitted assets | admitted assets]], [[Definition:Liability | liabilities]], [[Definition:Surplus | surplus]], [[Definition:Written premium | written premiums]], [[Definition:Earned premium | earned premiums]], [[Definition:Loss ratio | loss ratios]], and [[Definition:Investment income | investment income]]. Carriers must submit these reports electronically through the NAIC's financial data repository within 45 days of the quarter's close. The standardized format allows regulators to run [[Definition:Financial analysis | financial analysis]] tools — such as the NAIC's Insurance Regulatory Information System (IRIS) ratios — to flag carriers whose metrics fall outside acceptable ranges. Any material deterioration between annual filings, whether a sudden spike in [[Definition:Incurred loss | incurred losses]] or a drawdown in surplus, will surface here first.

🔍 For the broader market, quarterly statements function as an early-warning system. [[Definition:Reinsurer | Reinsurers]], [[Definition:Insurance broker | brokers]], and [[Definition:Rating agency | rating agencies]] routinely review these filings to assess a carrier's trajectory before waiting for the full annual statement. An insurer showing weakening [[Definition:Combined ratio | combined ratios]] or declining surplus quarter over quarter may face tougher [[Definition:Reinsurance | reinsurance]] negotiations or a ratings downgrade. Because regulators can initiate corrective action — including restricting an insurer's ability to write new business — based on quarterly data, these reports create a discipline that keeps carriers focused on financial health throughout the year, not just at year-end.

'''Related concepts'''
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* [[Definition:Annual statement]]
* [[Definition:Statutory accounting principles (SAP)]]
* [[Definition:National Association of Insurance Commissioners (NAIC)]]
* [[Definition:Solvency]]
* [[Definition:Combined ratio]]
* [[Definition:Surplus]]
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