2024 ValAct Meeting - Session 2F: A Twist in the Ledger: Capitalizing on US GAAP LDTI Requirements to Refine Other Bases and Performance Indicators 8.26.24 Recording

Occasionally, in the financial reporting world the stars align, and insurers get the opportunity to leverage their financial results and cashflows across multiple reporting use cases. Such opportunity came about with implementation of the U.S. generally accepted accounting practices (GAAP) long-duration targeted improvements (LDTI) accounting standard that required companies to move away from locked-in assumptions for traditional life and limited-pay products and produce best estimate liability cash flows for these business lines. Additionally, the requirement to frequently evaluate evolving experience has placed responsibility on insurers to keep up to date with actuarial assumption updates. This prescribed move, one step closer to principle-based reserving, offered US insurers an opportunity to leverage US GAAP financial results and cashflows in developing and refining other performance indicators, like economic bases, capital reporting and management reporting KPIs. This panel discussion will focus on how companies have been able to take advantage of the new US GAAP requirements, to develop and refine other performance indicators that provide additional insights into their business.