Description: Insurance company financial reporting and performance measurement are going through a significant transformation. Insurers are beginning to look at their business based on what many refer to as the “economic value framework.” Under this framework insurance companies determine the economic value of the capital invested in their business and the economic value of earnings to derive a risk-adjusted return on capital. Standard setters, primarily European insurance regulators through Solvency II and the International Accounting Standards Board through IFRS Phase II, propose adopting many of these concepts for solvency and performance reporting.

Description: Insurance company financial reporting and performance measurement are going through a significant transformation. Insurers are beginning to look at their business based on what many refer to as the 'economic value framework.' This paper examines some of the recent changes in financial reporting for insurance contracts and then explores whether sufficient evidence exists to conclude whether a company has created value simply by the sale of an insurance contract [gain at issue], and also reviews the necessary disclosures needed to build market trust of 'next-generation' financial reporting. Specific issues related to the economic view of capital also are examined as well as some of the problems existing economic capital approaches present to the industry. This paper proposes a performance measurement approach that incorporates the market’s view of risk and the level of compensation the market demands to accept that risk.

Description: Panelists at this session of the SOA 2001 Toronto Spring Meeting discuss new profit measures that are used in the management of the company. The focus is on value-added and risk-adjusted return on capital [RAROC] methods.

Description: 2021 Life Meeting - Session 5C: Assumption Setting in an Uncertain World 8.31.21 Recording

Description: The National Association of Insurance Commissioners (NAIC) is in the middle of of a project to change the real-world economic scenario generator (RW ESG) prescribed for principle-based reserve and capital calculations. The presenters will provide a brief summary of the NAIC's RW ESG project and provide a general overview of RW ESGs. In addition to that, they will explain how RW ESGs impact principle-based reserve and capital levels and consider potential differences between the currently prescribed RW ESG and the proposed RW ESG.

Description: Economic Scenario Generator - Investment Section Web Series Session #2 - Real World This session will cover the following points: 1. NAIC ESG 2. Strategic Asset Allocation and Optimization Techniques 3. Covid-19 Postmortem: Modeling and calibration changes because of recent events

Description: This panel at the SOA 1982 Houston Spring Meeting looks at 'current value' and 'constant dollar' accounting as they may apply to life insurance companies. Special attention is devoted to the best measurements of inflation-adjusted life company earnings.

Description: A discussion of some of the economic advantages of Offshore Life Reinsurance

Description: 2021 Life Meeting - Session 3F: LDTI - Disclosure Production Deep Dive 8.30.21 Recording

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.