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ABC Company
Claim Reserve Valuation Estimates as of December 31, 2015
Medical, Pharmacy and Dental
II. PHARMACY CLAIM IBNP RESERVE CALCULATION:
Pharmacy
Reserve Valuation
Reserve
Reinsurance
Seasonality
Method Description
Estimate
Recoverable
& Margin
TOTAL
-------------------------
---------------
------------------
---------------
-----------
1 .
Harm12/Man12
$336,310
1.00
1.02
$343,036
2 .
Harm12/Man6
$353,450
1.00
1.02
$360,519
3 .
Harm6/Man12
$346,368
1.00
1.02
$353,295
4 .
Harm6/Man6
$363,644
1.00
1.02
$370,917
5 .
Harm3/Man12
$349,253
1.00
1.02
$356,238
6 .
Harm3/Man6
$366,414
1.00
1.02
$373,742
7 .
6 mos avg pd claims x
$351,183
1.00
1.02
$358,206
Harm12 "# Mos UnPd"
0.614
8 .
6 mos avg pd claims x
$365,201
1.00
1.02
$372,505
Harm 6 "# Mos UnPd"
0.639
9 .
12 mos avg pd claims x
$336,021
1.00
1.02
$342,741
Harm12 "# Mos UnPd"
0.614
10 .
12 mos avg pd claims x
$349,433
1.00
1.02
$356,422
Harm 6 "# Mos UnPd"
0.639
11 .
Average of 10 Methods
$358,762
Harm 12/Man 12
12 .
Prior Months Runoff Claims
Remaining
Runoff
Reserve
Total Est
Pharmacy
Pharmacy Runoff
High & Low
------------------
------------------
------------------
----------------
Dec 15
$0
$336,310
$336,310
Nov 15
$311,571
$17,928
$329,498
Oct 15
$296,956
$3,030
$299,986
Sep 15
$396,155
$2,062
$398,218
Aug 15
$420,512
$1,281
$421,794
High
Jul 15
$360,618
$895
$361,514
Jun 15
$308,659
$563
$309,222
May 15
$299,740
$388
$300,128
Apr 15
$420,717
$270
$420,987
Mar 15
$249,768
$141
$249,909
Feb 15
$232,008
$115
$232,123
Low
Jan 15
$275,994
$96
$276,091
Dec 14
$366,684
$83
$366,767
13 .
Claim Reserve Relative Range:
$232,123 to
$421,794
14 .
Pharmacy Claims IBNR Reserve Estimate:
$360,000
15 .
Pharmacy Claims Processed But Not Cleared
$53,900
(3 day estimate)
Bank Account (Estimated):
16 .
Administration Expenses of Run-off Claims (Rounded):
$800
($0.15 PEPM * 2,731 EEs * 2 months)
17 .
Final Total Pharmacy Reserve Estimate:
$414,700