Description: This paper illustrates a procedure for analyzing the sources of profit under FAS 97 and suggests an analytical procedure for reflecting actual experience and revised future assumptions in the recalculation of the estimated gross profit defined by FAS 97.

Description: Presented at June 1996 Spring Meeting. This session presents an overview of the SOA cosponsored conference on fair value of insurance liabilities, including a comparison of some of the methods presented. The session also provides a status update of recent industry and professional activities and what the future may hold for the use of fair value of insurance liabilities in insurance company financial statements.

Description: Many top-performing businesses aren’t just risk aware, but rather risk intelligent. Such a posture helps prepare companies for a major event and can demonstrate to a regulator or auditor that an appropriately strong control framework is in place. Better still, companies gain real strategic value from a “risk adjusted” understanding not only of their threats and vulnerabilities, but also the upside opportunities associated with various risks. It starts with having both qualitative and quantitative information to identify, assess and manage risks. Strategic risk management, at its core, is about creating value by increasing transparency and accountability, and quality of information. More than a mere compliance exercise, effective risk management enables more informed strategic decision making, increased accountability and transparency, a greater likelihood of organizational success, and – ultimately – competitive advantage, as borne out by many studies that correlate risk management and financial results.

Description: The article is based on a study of causes of insolvency and decisions made by management, regulators, and policyholders over the life cycle of the insolvency.

Description: This panel discussed studies of the risk of loss due to changes in the interest rate environment. It addressed why the C-3 risk is important and how inflation and stability in interest rates can affect the financial soundness of life insurance companies. There was also a discussion of the theoretical work being carried out to calibrate the C-3 risk of variation in interest rates and to what extent the valuation actuary can properly recognize the risk of loss from changes in the interest rate environment within the framework of valuations laws and regulations.

Description: Presented at May 1985 Spring Meeting. This session discussed: Overview of tax changes for different types of life insurers, Product impact by type of product, Implementation issues - calculating tax reserves, Tax planning implications.

Description: Presented at May 1985 Spring Meeting. This session discussed: Applicable American Academy of Actuaries financial reporting recommendations, Techniques used in establishing margins, Appropriate margins under internal replacement programs, GAAP earnings impact of various methods for establishing margins for adverse deviation, Special considerations for interest-sensitive and lapse-sensitive products.

Description: Presented at May 1986 Spring Meeting. This session discussion is about product designs, market factors, state regulation, SEC aspects - 6e-3T.

Description: This paper examined two interrelated aspects of federal income taxation of life insurance companies. First, a common-sense approach to the Life Insurance Company Income Tax Act of 1959 was developed. Second, marginal tax rates for Phase III companies was developed.