Swiss reinsurer Converium announced in a conference call this week it has published restated financial information for 1998-2004, as well as for each quarter from March 31, 2003 through June 30, 2005.
Andreas Zdrenyk, Converium's chief financial officer, said the restatement on reinsurance contracts “related primarily to the U.S. GAAP [Generally Accepted Accounting Principles] requirement that reinsurance agreements transfer significant risk in order to qualify for reinsurance accounting treatment.”
Under this treatment, he said, cash flows are recognized as premiums and losses. Reinsurance contracts “that do not transfer significant risk are not reported as premiums and losses, but are instead subject to deposit accounting”–cash flows are recognized as deposit assets or liabilities.
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