Description: 2004 SOA Spring Meeting, Anaheim, CA. Topics in this teaching session included: 1. Selecting and testing levels of margin premium deficiency reserves. 2. Loss adjustment expense reserves. 3. Other ancillary liabilities. 4. Interplay between regulatory requirements and actuarial standards of practice.

Description: This article examines the impact of FAS 97 on the emergence of earnings for the most recent versions of UL products, those with interest rate and return of load kickers.

Description: This report summarizes the results of a research project undertaken by the Society of Actuaries to study the possible effects of the International Accounting Standards Board’s IASB Discussion Paper describing its Preliminary Views on Insurance Contracts on nine representative U.S. life, health and annuity products.

Description: After a summary of FASB decisions in their GAAP Targeted Improvements project, this article describes several issues that will need to be resolved either by the board or in actuarial practice and argues for seeking solutions that provide meaningful results without overly complicating valuation processes.

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.

Description: US GAAP for Life Insurers chapter 18 spreadsheet showing calculations of estimated gross margins before and after reorganization. Please see the book US GAAP for Life Insurers for further details on US GAAP accounting.

Description: Financial Reporting Section March, 2012, newsletter.

Description: Article describing an exposure of a practice note titled, “Treatment of VOBA, Goodwill, and Other Intangible Assets under PGAAP.”

Description: Overview of activities of the Financial Reporting Section.

Description: This article highlights features of the SOA's Regulatory Web Resource. The intent is to encourage greater use of the Resource among section members.