Many public companies have completed or are close to completing LDTI implementations. With parallel testing and comparative financials runs remaining before the LDTI 'go live' date, now is the time to drill down on LDTI earnings to understand how earnings emergence will look under the new accounting standards.
The presenters will focus on the earnings analysis for life products, including whole life, term and universal life. The cohort-level benefit reserve for traditional-type business like liability for future policyholder benefits (LFPB), will be a particular focus area. In this session, the presenters will discuss the challenges related to earnings analysis as experience emerges over time.
Topics will include:
- Net income volatility under LDTI and how this will differ from the prior accounting standard
- Allocation of cohort-level benefit reserves and income to a sub-cohort level for more granular earnings analysis
- Key GAAP items to include in analytics packages for senior management
At the conclusion of the session, attendees will be able to:
• Describe how earnings emergence for life products will differ between LDTI and the prior accounting standard
• Understand the considerations for developing LDTI earnings packages for management
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