TWIA Financial Statement appears to confirm insolvency

I have received a copy of the 2012 TWIA financial statement.  You can see it at the link at the bottom of this post. If you look on page 3 of the document, line 37, you will see the figure $182,979,043 in parentheses. In accounting notation, parentheses denote  a negative number.  The balance sheet looks even a little worse  if one consults page 14 of the financial statement.  There it appears to say that if one uses national standards for insurance accounting, the NAIC SAP basis, rather than Texas-specific rules, TWIA is $217,188,190 in the hole. This is considerably worse than in 2011, when its surplus was a negative $7,381,879.

Screenshot_3_22_13_6_26_PMThe income statement isn’t pretty either.  TWIA’s net income in 2012 was a negative $180 million. (Page 4, line 20). And, on a cash flow basis, it looks as it TWIA lost $47 million in cash in 2012. (page 5, line 18).

Anyway, although I do know a tad and wish I knew more, and although I am definitely not expert in the arcane field of insurance accounting, it does look as if there is support for the contention that TWIA is insolvent.

2012 Annual Statement. (Obtained from Texas Department of Insurance via Elizabeth Christian & Associates Public Relations)