The Multi GAAP module consists of several components. First there is a level of business called Portfolio Program. With the Portfolio Program you can structure your business and group it into portfolios. This is done by assigning individual sections of the assumed business to a hierarchical structure of the Portfolio Program. The hierarchical structure of the Portfolio Program is built using the section structuring facility. The reason for using the Portfolio Program is to:
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You can create period estimations on individual Assumed Business by using the Multi GAAP functionality. In SICS, you access the functionality by clicking the ES-button in the Business Properties window.
When you click the ES-button, SICS opens the Underwriters Estimates window. On this window you see the Period Estimate tab, which enables you to maintain your estimations. (You specify the estimation items that appear on the Period Estimation tab on the Multi GAAP tab in the system parameters-System Administration folder/System Parameter Maintenance) For each of the Estimation Items estimates are calculated from rules that are specified with the Estimation Items.
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How the Period Estimates on Proportional OCCs are populated, depends on Multi GAAP system parameter Period Estimation Calculation on Prop Outward Contracts
A: When system parameter Period Estimation Calculation on Prop Outward Contracts is cleared
The Period Estimates on a Proportional OCC are fed by the estimations of the protected Assumed Business. You get an overview of these estimations on the Period Estimates tab of the Proportional OCC. (Click the button on the Navigation bar of the OCC to access the Underwriters Estimates window.
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The estimation bookings made on the Assumed Business are automatically transferred to the OCC as Original bookings. This is normal SICS functionality. In addition to this you can make adjustments to the estimations that come from the Assumed Business. These adjustments can be made at the OCC and at the Retrocessionaire level. This works only for Proportional OCC’s.
Non-Proportional OCC’s has no direct connection to Assumed Business. Consequently there are no estimation bookings that are transferred automatically to the Non-Proportional OCC’s.
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The estimations at the portfolio and business level are usually booked when preparing the book closing. An automatic calculation order called “Multi GAAP Accounting Order” does the booking of the estimates. The order does two things:
Books the estimates either on the business or portfolio ledger depending on where the estimates are entered. The booked estimates are also created as status As original on the ledger of an OCC if the business or portfolio program is connected to a Proportional OCC.
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You can assign sections of an Assumed Business to the sections of the Portfolio Program in two different ways:
Starting from a Portfolio Program, you can link one or several Assumed Businesses, alternatively one or more sections of one Assumed Business to the active section of a Portfolio Program. One section of an Assumed Business can only be linked to one section of a Portfolio Program. Starting from an Assumed Business, you can link the active section to a section of a Portfolio Program.
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The Period Estimates are calculated automatically when a new currency is added. The system then applies the Calculation Rules to all Estimation Items and displays the resulting values. Entries marked as overwritten are not calculated. If the calculated Period Estimates are ok (which should usually be the case) you do not have to change the calculation at all.
If you change some of the values it might be necessary to recalculate the Period Estimates again.
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Manual booking with regard to Multi GAAP is different from ordinary manual bookings because it has to take care of the different GAAP’s.
How a booking is done depends on the figure to be booked. If the entry code and the amount are the same for all GAAP’s (which should be the case for all liquid bookings) only one booking line in the technical worksheet is needed:
The booking period can be adjusted according to the GAAP.
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With respect to premiums, deductions, or any other items, a Non-Proportional OCC has no connection to Assumed Business. Estimations therefore cannot be driven from the estimations of any Assumed Business.
To enter estimations on a Non-Proportional OCC follow the same procedures as for an Assumed Business. Note that it is not possible to attach an OCC to a Portfolio Program and therefore no default Period Estimates can be used to calculate the estimates.
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The Period Estimate functionality on Proportional Treaty Retrocessionaires depends on Multi GAAP system parameter Period Estimation Calculation on Prop Outward Contracts
A: When system parameter Period Estimation Calculation on Prop Outward Contracts is cleared
The Period Estimate tab on a Proportional treaty Retrocessionaire looks and works much like the one on a Proportional OCC. The only difference is that the estimates are collected from the business ledger of the Retrocessionaire. Figures marked ‘As Booking’ are shown on this tab.
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