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Foundations of Casualty Actuarial Science

fixed number that does not change at different valuation
dates. However, the value of the required loss reserve
is generally unknown for an extremely long period of
time.

f) Indicated loss reserve - the result of the actuarial
analysis of a reserve inventory as of a given accounting
date conducted as of a certain valuation date. This
indicated loss reserve is the analyst's opinion of the
amount of the required loss reserve. This estimate will
change with successive valuation dates and will
converge to the required loss reserve as the time
between valuation date and the accounting date of the
inventory increases.

g) Carried loss reserve - the amount of unpaid claim
liability shown on external or internal financial
statements.

h) Loss Reserve Margin - it is the difference between
the carried reserve and the required reserve. Since the
required reserve is an unknown quantity we only have

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