Description: This article discusses the impact on the financial statements of changing from Statutory Accounting to GAAP Accounting and the under-reporting of long-term earning power by insurance companies because of the AICPA technique of handling the transition.

Description: 2003 Valuation Actuary Symposium, San Diego, CA. This session covered the practical aspects of implementing the Statement of Position on accounting and reporting by insurance enterprises for certain nontraditional long-duration contracts and for separate accounts. Specific items include SA reporting, multiple account value products, guaranteed minimum death and living benefit reserves and sales inducements

Description: This paper argues by means of a mathematical demonstration that: 1. Natural reserves are not appropriate for adjusting earnings of mutual life insurance companies under GAAP. 2. Adjusted earnings developed by using statutory net level premium reserves together with a nonadmitted asset equal to the present value of unamortized variable acquisition expenses, and, if material, possibly with the reserves for terminal dividends, should bc accepted under GAAP, provided that dividend scales are suitably designed. 3. Other approaches which are essentially equivalent to that in bullet #2, such as those involving historical asset share funds, should likewise be acceptable.

Description: US GAAP for Life Insurers chapter 13 spreadsheets showing the development of the GAAP accounting entries for various classes of investments: bonds, CMOs, and mortgage loans. Please see the book US GAAP for Life Insurers for further information on US GAAP accounting.

Description: US GAAP for Life Insurers chapter 15 spreadsheet showing the GAAP development of VOBA and Goodwill after a merger or acquisition. Please see the book US GAAP for Life Insurers for further details on US GAAP accounting.

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: 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: Importance of non-GAAP operating earnings

Description: Article about how all the changes have not really affected our basic work.

Description: This session from the 1995 SOA Boston Meeting covers recent developments in the U.S. Topics include FASB and AICPA pronouncements such as FAS 115, GAAP for mutuals, and performance measurement and other uses of GAAP financial statements. From the Record of the Society of Actuaries, Vol. 21, No. 4a.