Description: Since solvency assessment depends on a financial reporting framework, one needs risk metrics for use in financial reporting. The essay argues that conceptually, the cost of capital is the appropriate metric for reserves, while a probability level is the appropriate metric for capital. Then the essay advocates stress testing on specific scenarios as a better practical approach to ORSA.

Description: An observation is made regarding the impact interest rate scenarios have on VM-20 stochastic reserves.

Description: This article discusses key considerations and differences in measurement requirements between IFRS 17 and LDTI, leveraging a term insurance example to illustrate potential impacts on liabilities and, ultimately, earnings emergence.

Description: This article is a transcript of a session at the Spring 1975 Meeting in Los Angeles. It addresses the question of whether traditional valuation principles can provide the same assurance of company solvency as in the past. Discussions include: Generally Accepted Accounting Principles GAAP, impact of changing asset values on cash flow and surplus problems.

Description: This article is part of the Digest of Informal Discussion, which took place at the 1957 Society of Actuaries Eastern Spring Meeting, held March 21-22 in New York City. The article identifies the participants and summarizes each person’s comments. The participants discuss adoption of a new mortality table and the need for deficiency reserves, the impact of new tables on participating and nonparticipating companies, and dividend patterns, whether new tables should be expected to remain an appropriate standard for an extended period, and the question of changing reserve and nonforfeiture interest rates. From Transactions of Society of Actuaries 1957 Volume 9, Number 24.

Description: This is the first of two articles discussing the model laws governing minimum reserves and non-forfeiture values that the NAIC adopted in December 1980. The author, Chairman of the NAIC Technical Task Force on Valuation and Nonforfeiture Value Regulation, in this first article describes the objectives of the revision, which include updating assumptions, increasing flexibility, and improving the ability to deal with new types of products, the cooperative effort entailed, the actuary’s role and responsibilities in doing business under the new law, and the financial impact.

Description: This article summarizes recent proposed changes to the Valuation Manual that might take effect for 2019 valuations for PBR business.

Description: 1993 SOA Spring Meeting, Boston. In this session the panelists discussed the new standard valuation law. Areas covered included: 1. Risk of legal liability? 2. Vagueness of actuarial standards? 3. Reliance on other company experts? 4. Consultants versus company actuary perspectives? 5. The science versus the art of the process?

Description: Actuary/accountant/tax attorney dialogue on recent guidance issued regarding treatment of deficiency reserves with respect to the “statutory reserves cap” of Internal Revenue Code section 807(d)(1).

Description: An update on the principle-based reserves (PBR) process and possible valuation manual adoption, with recommendations to actuaries on how to prepare.