Description: This is the third in a series of articles about accounting for reinsurance under GAAP Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI). It looks at some techniques that have been used to account for long-duration reinsurance under existing GAAP (before LDTI). It looks at whether and how those techniques can be updated to comply with the updated standards and evaluates their effectiveness against compliance, performance, and simplicity objectives.

Description: In this article, we collected data from the companies’ roll-forward disclosures related to calendar years 2021 and 2022 on Market Risk Benefit and shared a high-level summary of the Market Risk Benefit volatility that a focus group of companies incurred and summarized the most common ways to mitigate volatility.

Description: Discussion of the sensitivity of GAAP reserves to certain assumptions made and methodologies used. Followed by a discussion paper

Description: The introduction and effective application of US GAAP LDTI have increased the scrutiny of those reviewing the updated financial results. That is because LDTI has resulted in significant changes in actuarial reserving and deferred acquisition cost (DAC) models for long-duration contracts, including significant changes to data, assumptions and required disclosures. In light of the changes, greater reliance has been put on companies’ model risk management (MRM) teams and model validations to assess the conceptual soundness and accuracy of their companies’ actuarial models and to assess that the underlying data and process utilized are suitable and appropriate. This article covers a brief background on model validation, walk through a sample LDTI-focused model validation framework/test plan, then provide insights on common LDTI-related validation observations based on the authors' prior validation experience.

Description: Importance of non-GAAP operating earnings

Description: The impact of bond default risk on retirement benefit obligations describes how the probability default on a bond is similar to the probability of death for an annuitant. Bonds are used to cash flow match retirement obligations cash flows to funding from bond. Just as the probability of non-payment happens on the liability side, we can do the same with selected bonds. The end result may be an adjustment to the discount rates used.

Description: Various methods of accounting for a block of in-force business acquired at the time of purchase have been proposed and used. This paper describes nine such methods, analyzing each by the use of a very simple model office. Followed by submitted discussions of the article

Description: In this session 41 OF of the Montreal Spring Meeting panelists discuss the GAAP Statement of Comprehensive Income and its implications for actuaries. From the Record of the Society of Actuaries, Vol. 23, No. 2.

Description: Performance measurement is not the primary purpose of either GAAP or statutory accounting. This article discusses alternative methods of reporting used by life insurance companies to better measure financial performance.

Description: This panel discussion, which occurred at the May 1982 Society of Actuaries meeting in Colorado Springs, led a discussion related to employer's accounting for pensions and other post-employment benefits. Topics included: 1. Present accounting rules and background in connection with pension plans 2. The purposes for pension accounting rules in general 3. The nature of pension arrangements and the implication of their character for: a. Corporate liabilities and net worth h. Periodic charges to corporate income on account of pensions 4. Effect of actuarial gains and losses and the relationship of non-penslon post-retirement benefits to pensions, from an accounting viewpoint