Description: This paper discusses three methods for the amortization of deferred acquisition expenses, DAC and the results when actual experience differs significantly from that assumed. The methods include a static approach with prescheduled amortization, a dynamic technique called the expense reserve factor method, and an aggregate or accumulated premium revenue method. A discussion follows the paper. From Transactions of Society of Actuaries 1978, Vol. 30.

Description: This article is dedicated to the non-statutory accounting treatment of common credit risk exposures of life insurers but does not cover all aspects of non-statutory accounting standards. It introduces the concept of and the valuation of credit risks, concerning life insurers.

Description: As a follow-up to a previous five-part series on accounting for ceded reinsurance under LDTI, this article focuses on one issue that has, until now, been left without a general solution—how to measure the reinsured portion of a direct loss from capping a net premium ratio or flooring a liability. After acknowledging limited guidance on the issue, the article describes the various events that can lead to a loss, how reinsurance protects against loss, and how that is translated into formulas for measuring the reinsured portion of a loss.

Description: Importance of non-GAAP operating earnings

Description: US GAAP for Life Insurers chapter 4 spreadsheet. This spreadsheet shows the development of GAAP Profit/Loss statements along with benefit reserves and DAC and assumptions for several life insurance products such as 10 year endowment and 20 year term. Please see the book US GAAP for Life Insurers for full detail on US GAAP accounting.

Description: US GAAP for Life Insurers chapter 5 spreadsheet. This spreadsheet shows various tables and figures illustrating the development of expected gross margins, dividends, and DAC amortization for a participating 10 year endowment policy. Please see the book US GAAP for Life Insurers for full details on US GAAP accounting.

Description: Excel spreadsheet example of GAAP calculations for a Universal life plan showing reserves and DAC under FAS97 . Also shown is an unlocking example from this session of the 2010 U.S GAAP & IFRS conference in New York.

Description: This session at the 1998 Valuation Actuary Symposium looks at FAS 133, GAAP accounting for derivatives, including the impact on financial statements, implementation issues, and implications for the valuation actuary.

Description: Life insurance companies find themselves in a significantly more complicated environment than that of just a few years ago. Managements face an uncertain investment environment, the real possibility of deteriorating future mortality due to the spread of AIDS, and alternative and competing distribution systems.

Description: This session at the 2004 Valuation Actuary Symposium discusses dealing with volatile equity returns with DAC ammortization methodologies of stochastic DAC and mean reversion.