Description: In this article, a numerical comparison of two commonly used FIA valuation methodologies is conducted to help insurers decide on the best methodology to use under GAAP LDTI and VM-22. We compared two modeling approaches to project the future index credits with the annual point-to-point crediting formula: Tthe stochastic equity crediting model and the deterministic option budget crediting model. The analysis is then extended to different levels of option budgets and the monthly average crediting formula. The advantages and disadvantages of the two equity return projecting approaches are also highlighted and will be discussed later in the report.

Description: Discusses the severe adverse effects on U.S. capital markets that will occur due to the passage of FAS 115, which requires marking certain assets to market without a corresponding adjustment to liabilities.

Description: This article focuses on the market risk benefit (MRB) measurement model and will examine a generic guaranteed minimum death benefit (GMDB) in the context of LDTI and its impact from both the ceding entity and the reinsurer standpoints.

Description: Update on Financial Reporting Council activities.

Description: Update on Financial Reporting Council activities.

Description: A description of the Financial Reporting Section's priorities for 2016.

Description: The following Executive Summary is an excerpt from a report by Chris O’Brien entitled, “Market-Consistent Valuations of Life Insurance Business: The U.K. Experience.” The purpose of this article is to explain the new valuation approach, set out the issues with implementation and explain how insurers have addressed these issues.

Description: Article discussing recent developments in financial reporting research by the Section: 3 new PBA projects, stochastic pricing of embedded options, and comparison of results under IFRS and GAAP.

Description: This article helps companies better understand the currently proposed upcoming VM-22 regulation by comparing the VM-22 measurement model to LDTI MRBs. The article highlights key considerations as companies plan for adoption of these two measurement models. These considerations should help inform a company’s strategy related to the business impacted by these standards.

Description: One major feature of the OECD's two-pillar regime is that MNEs would base the calculation of taxes due on book-based financial statements. The article provides a summary of how these rules operate along with suggested actions insurers can take today to prepare for timely compliance.