Is my interpretation correct?
Column 1 includes Realized Gain (Loss) on Sales or Maturity and this is for all NAIC classes and valuations of investments.
For Column 2 "Other Realized Adjustments" and Column 4 "Change in Unrealized Capital Gain(Loss)", these are a bit confusing.
Per Odomirok (page 48), Other realized Adjustments include a decline in fair value that is deemed to be “other than temporary”. [These end up being reflected in Net realized capital gains after capital gains tax].
Per Odomirok (page 43), Changes in Unrealized Capital Gain (Loss) results from changes in the value of investments recorded at fair value. [These are direct charges or credits to surplus after capital gains tax].
These seem very similar to me, but it seems if there is a potential collectability issue on something recorded at fair value, then it reduces the net realized capital gains.
Column 1 includes Realized Gain (Loss) on Sales or Maturity and this is for all NAIC classes and valuations of investments.
For Column 2 "Other Realized Adjustments" and Column 4 "Change in Unrealized Capital Gain(Loss)", these are a bit confusing.
Per Odomirok (page 48), Other realized Adjustments include a decline in fair value that is deemed to be “other than temporary”. [These end up being reflected in Net realized capital gains after capital gains tax].
Per Odomirok (page 43), Changes in Unrealized Capital Gain (Loss) results from changes in the value of investments recorded at fair value. [These are direct charges or credits to surplus after capital gains tax].
These seem very similar to me, but it seems if there is a potential collectability issue on something recorded at fair value, then it reduces the net realized capital gains.
Exhibit of Capital Gains
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