Description: This article describes changes to financial reporting for variable annuities under US GAAP, IFRS and Statutory regulations, and implications for hedging.

Description: The implementation of the IFRS 17 insurance accounting standard has brought significant changes to the financial reporting landscape of insurance companies. With new disclosure requirements and altered profit analysis, understanding and interpreting future profitability have become a topic of concern for the industry. While stability remains a key objective for insurance companies, the earning patterns might become more volatile especially when the contractual service margin (CSM) is exhausted, and a loss component (LC) needs to be established. Reinsurance, a common risk mitigation tool, can play a pivotal role in managing earnings volatility and minimizing losses for onerous measurement units. In this article, we propose a new key performance indicator (KPI) called “loss recoverability” to assess the performance of reinsurance treaties in achieving these objectives. We explain how this KPI can be utilized in multiple scenarios to evaluate the effectiveness of reinsurance strategies and pursue stability in earning patterns.

Description: The article “IFRS 17, Economic Volatility, and Reinsurance” (IFRS 17, Economic Volatility, and Reinsurance | SOA) was designated the best article published in Reinsurance News in 2022. It looks at providing industry insights on preparing for the new global accounting standard. The article was submitted by Paul Sauvé (RGA) and it appeared in the June 2022 issue.

Description: Describes current developments in the IASB's Insurance Contracts Project.

Description: Column from section chairperson describing upcoming events pertinent to the Financial Reporting Section.

Description: The SOA added a new title to its book offerings: International Financial Reporting for Insurers (IFRI) (available in print and digital editions). The article describes the salient features of the work, which presents a comprehensive analysis of the fundamentals outlined in key International Financial Reporting Standards® (IFRS®).

Description: This article highlights some key implications for onerous contracts under IFRS 17.

Description: Pandemic impact on continuing education. Financial Reporting Section and Community Engagement. US GAAP textbook update for LDTI. IFRI textbook update for amendments.

Description: This article highlights some key implications for reinsurance contract held and loss-recovery component IFRS 17.