Insurance Company CPA and Audit Services

Statutory accounting is not just GAAP accounting with a few adjustments and firms that treat it that way can create problems for their clients.

Admitted and non-admitted assets, reserve adequacy, risk-based capital, Schedule P, and the annual statement all follow logic that exists nowhere else in accounting. A firm that only touches statutory accounting once a year is learning it on your engagement, at your cost, and often running into a filing deadline that does not move.

Insurance has been core to Larson & Company since the firm's founding. We were built to serve this industry. We work with insurance companies in every industry line and our firm has been nationally ranked by AM Best for over a decade. We work with departments of insurance regularly enough to know what draws examiner attention. Our specialization makes us efficient, saving you time and money.

Talk to our insurance team

Who we work with

Property and casualty carriers. Personal and commercial lines, including small and mid-size carriers where the audit team's understanding of the book matters more than firm size.

Life and health carriers, including life insurance audit engagements involving reserve complexity and significant reinsurance arrangements.

Reinsurers and reinsurance intermediaries. Assumed and ceded arrangements, treaty analysis, and the collateral and credit questions that follow.

Managing general agents, program administrators, and insurance agencies. We can help with financial audits or SOC 1 reports on their controls.

Risk retention groups and captives. See our captive insurance page for additional information on our services for these entities.

Where Insurance Engagements Actually Get Difficult

Reserves. The largest estimate on the balance sheet. We coordinate with your appointed actuary rather than duplicating the analysis, and we evaluate the reasonableness of the assumptions and the adequacy of the supporting data. Data quality feeding the actuarial analysis is a recurring finding across the industry.

Reinsurance. Whether risk transfer is genuine, whether ceded balances are recoverable, whether collateral is adequate, and whether the accounting presentation matches the contractual substance.

Admitted asset determination. Non-admitted assets reduce surplus directly and misclassification moves the number regulators watch most closely.

Premium recognition and unearned premium. Straightforward in concept, frequently messy in systems, particularly where multiple administrators are involved.

Investments. Valuation, impairment, and the NAIC designation process for the portfolio.

Risk based capital. The calculation itself and the surplus implications of the decisions feeding it.

Statutory to GAAP differences. For carriers reporting both ways, whether for a parent, a lender, or a transaction.

Services We Provide to Insurance Clients

Statutory financial statement audits. We provide audit services to insurance companies[AJ1] .

GAAP audits and conversions. For entities reporting to parents, investors, or lenders on a GAAP basis alongside statutory filings.

Insurance company tax provisions and returns. Federal and state compliance, including the book to tax differences specific to insurance entities.

Internal control assessment. Design evaluation, remediation of prior findings, and preparation for department examination.

SOC 1 reports. For MGAs, third party administrators, claims administrators, or insurance carriers whose clients' require them.

Cybersecurity and data security compliance. Assessment against the state adoptions of the NAIC Insurance Data Security Model Law.

Working With Us From Any State

Insurance is a national practice for us. Statutory reporting is consistent enough across jurisdictions that geography matters far less than experience, and most of our insurance clients have never visited our office. Fieldwork runs remotely through a secure portal, with travel where the engagement genuinely requires it.

Do you audit small carriers, or only large ones?

We work across a wide range of carrier sizes. Smaller carriers often get better service from a specialist mid-size firm than from a national firm where they are a minor account.