In this video, Ryan Kiefer, a senior manager at Deloitte Consulting, provides a comparison of GAAP accounting relative to other earnings frameworks used by insurance companies, such as statutory and economic bases. GAAP aims for consistency and comparability across companies, matching revenues and expenses to generate consistent earnings patterns. Statutory accounting, used for filing financial statements with state regulators, is more conservative and focuses on company solvency and protecting policyholders. Economic bases, like Solvency II or IFRS 17, calculate assets and liabilities at market value to provide a realistic snapshot of financial health for strategic decision-making and risk management. The video concludes with an examination of GAAP earnings and the actuarial components that directly impact GAAP income.
Contributors: Ryan Kiefer, ASA, MAAA; Shirly Wu, FSA, MAAA; Weiling Lao, FSA, MAAA; Jon Forster ASA, MAAA