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2016 Financial Report of the United States Government


United States Government Required Supplementary Information (Unaudited) For the Years Ended September 30, 2016, and 2015

Risk Assumed

Risk assumed information is important for all federal insurance and guarantee programs (i.e., USDA-Federal Crop Insurance Corporation programs, DHS-National Flood Insurance Program, NCUA-Credit Unions), except social insurance, life insurance, and loan guarantee programs. Risk assumed is generally measured by the present value of unpaid losses net of associated premiums, based on the risk inherent in the insurance or guarantee coverage in force. In addition to the liability for unpaid insurance claims included in Note 15─Insurance and Guarantee Program Liabilities, for events that have already occurred, the Government also is required to report as supplementary information risk assumed amounts and the periodic changes in those amounts.

The assessments of losses using the risk assumed are made by actuarial or financial methods that include information and assumptions applicable to the economic, legal, and policy environment in force at the time the assessments are made. Management has estimated the loss amounts based on the risk assumed as well as the periodic changes.

Please refer to the individual financial statements of the USDA , and NCUA for further detailed information, including information as to the indicators of the range of uncertainty around expected estimates and the indicators of the sensitivity of the estimates to changes in major assumptions. The table does not include all federal insurance and guarantee programs.

Risk Assumed Information as of September 30, 2016, and 2015

(In billions of dollars)


2016



2015

Present value of unpaid losses, net of associated premiums:
Department of Agriculture - Federal Crop Insurance Corporation programs 8.3 7.6
National Credit Union Administration - Credit Unions 0.2 0.2
  Total 8.5 7.8
 
Periodic changes in risk assumed amounts:
Department of Agriculture 0.7 -
Department of Homeland Security - (0.4)
  Total 0.7 (0.4)



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