Insurance and Reinsurance contracts must be recognized in various components.
You must fair value any assets and liabilities measured in accordance with the acquiree's accounting policies for contracts it issues or holds.
For example, the contractual assets acquired could include a reinsurance recoverable, while the liabilities assumed could include a liability to pay future contract claims and claims expenses on the unexpired portion of the acquired contracts. This could also constitute a liability to pay incurred contract claims and claims expenses. However, those assets acquired and liabilities assumed would not include the acquiree’s deferred acquisition costs and unearned premiums that do not represent future cash flows.
Please mark all relevant accounts and their fair values below.