Description: The article summarizes implications of rising interest rates on U.S. GAAP and statutory financial reporting for life insurers, highlighting potential tailwinds from steady increases and headwinds from sharp increases. We further provide insights into how insurers can leverage ALM programs and interest rate risk hedging practices to favorably position themselves in a rising rate environment

Description: This article discusses the current status, including differing views, on the treatment of risk transfer in reinsurance agreements under the principle-based reserves PBR approach.

Description: This article analyzes, understands, and discusses the impact of the upcoming Principle-Based Reserving (PBR) on non-variable deferred annuities.

Description: The American Academy of Actuaries task force charged with developing a risk-base capital formula for health insurers submitted its preliminary report to the NAIC Health Organizations Risk-Based Capital Working Group.

Description: Discusses the meaning of statutory reserves with respect to a pending IRS ruling, in the case where different levels of statutory reserves are required in different states.

Description: The Joint Actuarial Committee of the American Life Convention and the Life Insurance Association of America has been considering changes needed in the Standard Nonforfeiture and Standard Valuation laws in light of the high level of interest rates currently available and expected for future years.

Description: This dialogue discusses the history and purpose of section 811(a) and its historic role in the computation of life insurance company taxable income and, in particular, reserves.

Description: The purpose of the article is to summarize the results and conclusions of the C-1 Risk Task Force Report prepared for the Committee on Valuation and Related Areas. A key question: Is the risk to insurance companies of defaults on junk bonds sufficient to justify increasing required surplus levels?

Description: Update on statutory Valuation reserves and required surplus for variable annuities with living benefit guarantees

Description: This article discusses the impact on the financial statements of changing from Statutory Accounting to GAAP Accounting and the under-reporting of long-term earning power by insurance companies because of the AICPA technique of handling the transition.