Nonledger Asset

Nonledger assets are items of value owned by an insurance company that is not recorded in that company's formal accounting records. Nonledger assets are basically income that an insurance company expects to receive but hasn't actually received yet; therefore, it is officially off the ledger of assets until received. Both ledger assets and nonledger assets are reported on the insurance company's annual statement to state regulators. In addition to reporting assets, this annual statement also reports the insurance company's income, disbursements and liabilities for the year.

An insurance company's nonledger assets may consist of unpaid assessments, dividends due and accrued, interest due and accrued, and the market value of stocks owned in excess of their book values. Generally, ledger assets include cash in a company's office, cash in the bank but not reflected on the balance sheet, premiums due and the book value of notes, bonds and other securities. Even though nonledger assets are separated from ledger assets, nonledger assets are recognized as assets for statutory accounting purposes by state insurance commissioners.

The Commissioner of the State of Texas has an annual statement form for insurance companies that lists items for nonledger and ledger asset reporting. The two main line items for the nonledger section are interest due or accrued and market value of stocks over book value. In the ledger section, stocks and bonds, mortgage loans, real estate, collateral loans, cash in office, cash on deposit, uncollected premiums, premium notes, and furniture and equipment appear as line items. Both nonledger and ledger assets for Texas, as well as all other states, figure in the calculation for capital and surplus requirements of insurance regulators.