Description: The OCI-Solution of IASB’s IFRS 4 Phase II requires that interest expense for the Profit and Loss (P&L) calculation be based on a yield curve instead of a flat rate locked-in at policy issue. The article has a discussion of analysis of the impact from locking in the yield curve on the IFRS 4 profit pattern as well as general conclusions reached.

Description: Discussion rebutting the Dec. 2004 issue of The Financial Reporter article titled, “On the Fair Value of Insurance Liabilities,” authored by Don Solow. That article expressed disagreement with the position of the International Accounting Standards Board and the Financial Accounting Standards Board to reflect the value of “own credit risk” in the fair valuation of insurance liabilities.

Description: This is a continuation of a discussion about the the theoretically correct treatment of the credit put the policyholder writes when purchasing an insurance contract.

Description: An ongoing discussion of the theoretically correct discount rate for valuing insurance liabilities: whether or not the credit rating of the insurer should affect the discount rate used. See related articles including the article “On the Fair Value of Insurance Liabilities: The Regulator’s Option” in the December, 2005 issue of The Financial Reporter.

Description: There is often a disconnect between the way products are priced IRR and embedded value methods and the way business performance is measured once it is already on the books GAAP and GAAP ROE. This article discusses the theoretical reasons for this disconnect and how an accounting system could be developed to eliminate the disconnect and thereby align investor and management expectations with the financial reporting system.

Description: Review of modeling of impact of proposed GAAP changes and commentary on preparedness based on company survey.

Description: Actuaries are accustomed to considering how much conservatism is appropriate in their estimates, whether made for pricing or for mea- surement of liabilities. In the proposals for a new standard on accounting for insurance contracts, this conservatism is referred to by the International Accounting Standards Board IASB and the Financial Accounting Standard Board FASB of the United States as the risk adjustment.

Description: Description of the discussion of the International Actuarial Association who met in Nassau, the Bahamas. Discussions included: IFRS and corresponding issues, Solvency II, ComFrame, and upcoming publications.

Description: Key considerations when modeling reinsurance to calculate reserves under PBR as well as a case study examining the impact of reinsurance structures on reserves.

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