Risk assumed information is important for all Federal insurance and guarantee programs, except social insurance, life insurance, and loan guarantee programs. Risk assumed is generally measured by the present value of unpaid expected 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 18─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 expected based on the risk assumed are based on 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 PBGC, 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. We note that this table does not include all federal insurance and guarantee programs.
|(In billions of dollars)||2012||2011|
|Present value of unpaid expected losses, net of associated premiums:|
|Pension Benefit Guaranty Corporation||321.7||250.2|
|Department of Agriculture||18.3||8.8|
|National Credit Union Administration||3.4||7.4|
|Periodic changes in risk assumed amounts:|
|Pension Benefit Guaranty Corporation||71.5||60.2|
|Department of Agriculture||9.5||1.3|
|National Credit Union Administration||(4.0)||(0.1)|