Description: The presenters at this session will provide an overview of recent developments in statutory valuation, U.S . GAAP and regulatory capital issues pertaining to life and annuity products as well as IFRS and the global insurance capital standard.

Description: This article highlights the key implications and insights as a result of the change to the determination of reserves under GAAP accounting guidance for insurers with long-duration liabilities due to Accounting Standards Update (ASU) 2018-12 (“LDTI”) for IDI and LTC products.

Description: 1993 SOA Annual Meeting, New York. This session provided an update on the appointed actuary. Topics included: 1. Provided preliminary results of a 1992 cash-flow-testing survey that was sent to a number of life companies in the U.S. 2. A discussion of the position taken by one actuary who did not do cash-flow testing in forming an opinion for his company's 1992 annual statement. 3. How to deal with failed scenarios. 4. The evolution of the appointed actuary's role at MetLife. 5. How the process currently works at MetLife. 6. Insights on where MetLife sees the process going.

Description: In this article, we summarize inflationary factors that may result in a sharp increase in interest rates and implications for life insurer convexity risk exposure, most notably to dynamic policyholder lapsation. We further provide insights into potential ALM strategies to mitigate this convexity risk. Due to the prolonged low-interest rate environment and low minimum interest rate guarantees offered to policyholders, liability convexity is higher than prior historical periods, which results in life insurers’ ALM positions being extremely vulnerable to short-term interest rate spikes. Convexity mismatches cause issues for life insurers under both rising and declining interest rate scenarios. This means that life insurers are not compensated for taking convexity risk and, therefore, convexity matching should always be considered in the asset optimization process. There are mixed signals from policymakers and financial markets regarding potential inflationary and sharply rising interest rate scenarios. The key takeaway is that life insurers are not compensated for taking convexity risk and it is the right time for insurers to review convexity exposure. There are different approaches available to mitigate convexity exposure through rebalancing of asset positions and hedges within each life insurer’s risk limits.

Description: FASB has provided broad guidance for application of the targeted improvements in Actuarial Standards Update 2018-12 for U.S GAAP financial reporting. However, the broad guidance provided leads to several interpretation and modeling challenges for life insurance, annuity, disability and LTC products. The presenters focus these challenges and possible methods to address them. Audience participation is encouraged. At the conclusion of the session, attendees will be able to: - Describe the changes made to U.S. GAAP under the targeted improvements - Explain various interpretations of modeling products under the changes to U.S. GAAP

Description: Full version of NewsDirect Newsletter, May 2002, Issue No. 40.

Description: In this article, we collected data from the companies’ roll-forward disclosures related to calendar years 2021 and 2022 on Market Risk Benefit and shared a high-level summary of the Market Risk Benefit volatility that a focus group of companies incurred and summarized the most common ways to mitigate volatility.

Description: Full version of NewsDirect Newsletter, January 2002, Issue No. 39.

Description: Full version of NewsDirect Newsletter, September 2002, Issue No. 41.

Description: Statutory and GAAP financial reporting revisions motivate enhanced modeling and more comprehensive hedging for equity-based products. The changes also bring about a number of implementation challenges. The presenters will outline how the reporting standards are changing and the resulting business implications.