Originally Posted by
silverblizzard888
I think this definition insurance companies use will help:
The Difference Between Actual and Assumed Experience — Experience profits/(losses) are realized where actual experience differs from best estimate assumptions. Instances giving rise to experience profits/(losses) include variations in claims, expenses, mortality, discontinuance and investment returns. For example, an experienced profit will emerge when the expenses of maintaining all in-force business in a year are lower than the best estimate assumption in respect of those expenses"
It more or less recognized premiums that were factored into claims, but not claimed and could be recognized as profits. Seems every insurance company uses this way of reporting both in NZ and internationally.