Description: This paper develops a tool that may be useful in explaining the differences between earnings that are reported under GAAP and profits that are expressed as an internal rate of return.

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

Description: The report begins with Tan's paper Source-of-Earnings Analysis under FAS97 Universal Life Accounting that defines a procedure for analyzing the sources of profit. This paper extends the analysis to consider the effect of actual experience varying from expected and the effect of those variances on assumptions for the future. Also the paper illustrates examples of the effect of changing future assumptions or unlocking on the magnitude and incidence of profits and amortization. A discussion of the paper follows. From Transactions of Society of Actuaries 1990, Vol. 42.

Description: Examination of how mean reserve factors can best be calculated in light of the new accounting reporting requirements for the earnings of stock life insurance companies. Also examines some methods of expense amortization, including the reserve factor method, and also attempt to show an informative comparison of how reported calendar-year earnings can be expected to emerge with statutory mean reserve factors, natural mean reserve factors, and assorted expense amortization methods. Followed by several submitted discussion papers

Description: Existing actuarial literature does not provide a consolidated comparison of the available alternatives for accounting for universal life. This paper will analyze the similarities and differences between the existing prescribed method and the proposed alternatives. From Transactions of Society of Actuaries 1987, Vol. 39.

Description: This section presents book reviews and summaries of recent publications. Reviews: '1975 Annual Reports of the Board of Trustees of the Federal OASDI Trust Funds...' by the US Congress, 'Providing Adequate Retirement Income' by Schulz, Carrin, Krupp, Peschke, Sclar and Steenberge, 'Ernst & Ernst GAAP - Stock Life Companies' by Posnak, 'Reports of the Quadrennial Advisory Council on Social Security' by US Government, 'Fundamentals of Private Pensions' by McGill. Digests also included.

Description: The purpose of this paper note is to highlight the similarities of results from the amortization of initial life insurance acquisition costs by means of an acquisition cost amortization schedule similar to that used by accountants versus a set of actuarial-type acquisition cost natural reserve factors appropriately applied to beginning and ending in-force units.

Description: This paper explores a reserving technique in which profits are recognized as a percentage of assets. Followed by a discussion of the paper.

Description: This paper identifies and discusses certain critical GAAP issues, such as the development of appropriate valuation assumptions, the applicability of the lock-in principle, and the evaluation of recoverability of deferred acquisition cost. In addition, the paper describes a valuation procedure that may be used to implement prospective changes to current valuation assumptions for in-force policies. From Transactions of Society of Actuaries 1981, Vol. 33.