Industries
Insurance companies, MGAs and captives
Finbryn provides outsourced bookkeeping for insurers, MGAs and captives: it keeps the books and prepares the reconciliations and the statutory and GAAP schedules that management reviews and signs, alongside actuarial reserve and IFRS 17 support signed where a signature is needed by a credentialed actuary. Officers sign the statutory statements, and an independent CPA practice performs any audit.
Management report
Illustrative client · September 2026
USD
| Line | Sep | Aug | |
|---|---|---|---|
| Revenue | 142,380 | 131,904 | +10,476 |
| Cost of sales | (51,260) | (48,115) | (3,145) |
| Gross profit | 91,120 | 83,789 | +7,331 |
| Payroll | (46,300) | (45,900) | (400) |
| SoftwareNoted | (6,480) | (5,490) | (990) |
| Rent | (8,000) | (8,000) | 0 |
| Other operating | (9,215) | (9,870) | +655 |
| Net income | 21,125 | 14,529 | +6,596 |
Reviewer's note
Software is up on last month after two seats were added mid-month. Revenue includes one milestone invoice that will not repeat next month.
Illustrative. An example of the document, not a client's figures.
Exceptions report
Where the books usually hurt
One ledger has to feed a statutory annual statement and GAAP statements, and the two bases drift apart between closes
Bordereaux, carrier statements and the cash actually collected and remitted are never tied to each other
Premium written, earned and unearned sit in a spreadsheet that the general ledger never sees
Reserve and reinsurance schedules reach the auditor late and in a different format every year
Under the NAIC's model audit rule (Model #205), an insurer with under $1,000,000 in direct premiums written in the state in a calendar year and fewer than 1,000 policyholders nationwide can be exempt from the audited financial report, unless it assumes $1,000,000 or more in reinsurance premiums; states adopt their own version (NAIC, checked 2026-10-19). Whether that applies to you or not, the books are built the same way: two bases, one close.
What does an insurer's chart of accounts need to do?
It has to map every account to two reports. The statutory side follows the NAIC Accounting Practices and Procedures Manual and feeds the annual statement. The GAAP side follows ASC 944 and feeds lenders, investors and reinsurers. Finbryn builds the chart so premiums written, earned and unearned, losses and loss adjustment expense, ceded reinsurance, commissions and investment income each carry a statutory line and a GAAP line, and both trial balances come out of the same close.
How is insurance revenue recognized?
On short-duration contracts, such as most property and casualty policies, premium is recognized over the policy period as coverage is provided, and the unearned part stays on the balance sheet until then. An MGA is different. Its revenue is the commission and fees it earns, and the premium it collects for carriers is a fiduciary balance, not revenue. We keep the two treatments apart in the ledger and tie them to bordereaux and carrier statements.
Which financial statements do we prepare?
Monthly management statements, the quarterly and annual statutory schedules behind the statement your officers sign, and GAAP statements where a lender, investor or parent asks for them. Your officers sign the statutory statements and your appointed actuary signs the actuarial opinion. Finbryn signs neither and is never your appointed actuary.
Where does actuarial work fit?
Beside the books. Finbryn prepares loss reserve studies and IFRS 17 implementation support, signed where a signature is needed by a credentialed actuary. The reserve figures then flow into the same close as everything else.
Who audits the books?
An independent CPA practice. Finbryn is not a CPA firm and does not issue audit, review or compilation reports. If Finbryn keeps your books, we refer your audit to an independent CPA practice that is independent of Finbryn, and Finbryn receives no fee or commission tied to any audit. What we prepare is workpapers organized for your independent auditor.
Working with Finbryn
You keep your ledger in QuickBooks Online, Sage Intacct or NetSuite. A named pod handles the account on a close calendar agreed at onboarding, working from policy system exports and carrier statements. Most teams begin with monthly bookkeeping. Pricing is on the pricing page.
Questions
Frequently asked questions: Insurance companies, MGAs and captives
How should an insurance company chart of accounts be set up?
One chart, two bases. Each account maps to a statutory line for the annual statement and to a GAAP line under ASC 944, so premiums written, earned and unearned, losses and loss adjustment expense, ceded reinsurance, commissions and investment income roll to both reports from one ledger. We build the map and the two trial balances for your review (scope checked 2026-10-19).
What goes into insurance company financial statements?
Statutory statements follow the NAIC annual statement format and are signed by your officers; GAAP statements follow ASC 944 for lenders and investors. We prepare the schedules and workpapers behind both. Your appointed actuary signs the actuarial opinion. We prepare financial statements. We have not audited or reviewed them and give no assurance (scope checked 2026-10-19).
How does insurance company revenue recognition work?
On short-duration contracts, such as most property and casualty policies, premium is recognized over the policy period as coverage is provided, with the unearned part held on the balance sheet. An MGA recognizes its own commission and fees, and premium collected for carriers is a fiduciary balance. We keep the two apart in the ledger and tie them to bordereaux and carrier statements (scope checked 2026-10-19).
Can an outsourced accounting team prepare quarterly and annual statutory statements under my CFO's review?
Yes, as preparation. We prepare the quarterly and annual statutory schedules and supporting workpapers, and your CFO reviews them before your officers sign. We do not sign or file statutory statements. Where a state requires an audited financial report, an independent CPA practice performs it. The NAIC model rule can exempt an insurer under $1,000,000 in direct premiums written in the state with fewer than 1,000 policyholders nationwide, and states adopt their own version (NAIC Model #205, checked 2026-10-19).
What are the common bookkeeping challenges for an insurance company or MGA?
Keeping statutory and GAAP trial balances from one close, tying bordereaux to premium collected and remitted, and getting reserve and reinsurance schedules to the auditor on time come up most. We build the close checklist around them.
What software do you support for insurers, MGAs and captives?
We work inside QuickBooks Online, Sage Intacct or NetSuite, using exports from your policy administration system and carrier statements. If you have no file yet, we set one up in your company's name so you own it from day one.
Sources
- [1]NAIC Annual Financial Reporting Model Regulation (Model #205), checked October 19, 2026
Related services
- Insurance accountingMGA and program administrator accountingBordereaux tied to premium collected and remitted, fiduciary account reconciliations and quarterly carrier reports prepared for the MGA's review.
- Insurance accountingCaptive and risk retention group accounting supportBooks kept on the basis the domicile requires, GAAP or statutory, with the schedules the captive manager hands the independent auditor and the actuary.
- Insurance accountingStatutory accounting and annual statement support for small insurersStatutory and GAAP trial balances from one close, supporting schedules for the NAIC annual statement your officers sign, and Model Audit Rule readiness workpapers.
- ActuarialLoss reserve studies for workers' compensation and liability self-insuranceUnpaid loss and expense estimates for workers' compensation, general liability and auto self-insurance programs and for captive reserve support, using standard development methods on your claims history.
- ActuarialIFRS 17 implementation and reporting support for US insurersData checks, fulfilment cash flow and contractual service margin calculations, reconciliations to US GAAP and statutory figures and disclosure schedules for US insurers, reinsurers and captives that report to an IFRS parent, for review and signature by the insurer's own actuary or another credentialed actuary it engages.
- BookkeepingMonthly bookkeepingOngoing monthly bookkeeping: transactions sorted into categories, accounts reconciled and month-end reports delivered in the software you already use.
Explore these areas
- Agencies, MGAs, captives and small insurersInsurance accounting supportMonthly books, reconciliations and statutory and GAAP schedules for independent agencies, MGAs, captives and small insurers, prepared for management to review and sign. Officers sign the statutory statements and an independent CPA audits.
- Valuation work, prepared for the signing actuaryActuarial servicesActuarial modeling and valuation support for retirement plans, employee benefit liabilities and self-insurance programs, with every certification or statement of actuarial opinion reviewed and signed by a credentialed actuary who meets the applicable US standard.
- Books, reconciled every weekBookkeepingMonthly bookkeeping in QuickBooks Online, Xero or the platform you already run: every transaction sorted into categories, every bank and card account reconciled, and a clean set of reports each month.
Related guides
- ComplianceStatutory Accounting vs GAAP for Small InsurersStatutory accounting vs GAAP for small insurers: acquisition costs, nonadmitted assets, reinsurance, and the Model Audit Rule against SOX.
- BookkeepingBookkeeping for Freelancers and Etsy Sellers: What to TrackBookkeeping for freelancers and Etsy sellers: what to track, the 1099-K threshold now in force, self-employment tax and sales tax basics (checked 2026-10-18).
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.