Description: Feature article describing the events of the Valuation Actuary Symposium in Indianapolis, In.

Description: I attended the NAIC Winter Meeting held December 1-5, 2005, in Chicago, including meetings of the Life and Health Actuarial Task Force (LHATF) and selected meetings of the NAIC. Summarized here are the activities, which took place at these meetings.

Description: Feature article discussing U.S. and international regulatory developments of interest to actuaries in the financial reporting field.

Description: Following the referendum in the UK on June 23 the UK is likely to leave the EU in the near future. While the terms of this separation will not be known for many months, this article aims to explore the possible implications that US insurers may face.

Description: Embedded Risk in Settlement Options on Older Life and Annuity Contracts

Description: The 2008 global financial crisis highlighted the costs of supporting systemically important financial institutions (SIFIs) as well as the linkages both between institutions as well as across countries. The G 20 tasked the Financial Stability Board (FSB) along with international regulatory associations such as the Basel Committee on Banking Supervision (BCBS), International Association of Insurance Supervisors (IAIS) and the International Organisation of Securities Commissions (IOSCO) to evolve frameworks for supervision of such SIFIs.

Description: This article discusses issues with ties to principle-based valuation.

Description: Analysis of IASB position on the discount rate to use in computing the Fair Value of Insurance Liabilities

Description: Developments at the NAIC, IAIS, and Federal Reserve regarding life insurance regulation. PBR is not included.

Description: Understanding the Deferred Acquisition Cost (DAC) asset balance movements from one reporting period to the next can be a challenge when reportinged under FAS 97. The mechanics of FAS 97 call for an amortization ratio (i.e., k factor) that forces the amortization of the DAC asset to be matched to the earnings received over the life of the product. However, the fact that the k factor is dynamically set results in “unlocking” components of the DAC rollforward. This article shows how the basic equation for the amortization ratio can be used to derive equations that provide insights into what the DAC balance represents. Furthermore, partial derivatives of these equations are used to show how unexpected changes in the Estimated Gross Profit (EGP) stream impact the amortization and unlocking components of the DAC rollforward.