Description: This paper expands on the traditional three-factor interest, mortality, and expenses dividend contribution formula to propose a new dividend structure. The structure and formula are derived from the most generalized equation of equilibrium, and each dividend class is treated as an ongoing microcosm. From Society of Actuaries Financial Reporting Monograph, M-AS99-1.

Description: This article looks at the present dilemma on the priorities of an insurance company's obligations to policyholders and how the history of Separate Accounts can bring this issue into understanding within the context of its historical development. From Society of Actuaries Financial Reporting Monograph, M-AS99-1.

Description: This a two-part article on actuarial opinions and addresses the coordination of opinions found in the financial reporting environment of the brown or blue book actuary. From Society of Actuaries Financial Reporting Monograph, M-AS99-1.

Description: This paper takes the position that a truly transparent pension accounting expense could be developed to produce superior reporting that reflects experience as it occurs. Contributions could also be based on some asset and liability information about the pension plan, but with flexibility to allow for more controllable and stable contributions. From Current Pension Actuarial Practice in Light of Financial Economics Symposium, M-RS04-1.

Description: This paper is the first in the Transactions to address itself to the problem of general-purpose financial reporting for life insurance companies. The primary purpose of the paper is to demonstrate how a natural reserve approach may be utilized effectively to adjust life insurance earnings in a manner consistent with GAAP. A second purpose of the paper is to demonstrate earnings patterns obtained by several possible alternative approaches to earnings adjustments. From Society of Actuaries Financial Reporting Monograph, M-AS99-1.

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: The goal for an insurance firm is to maximize value. This paper describes the approach using an objective function of the Option Adjusted Value of Distributable Earnings OAVDE. The paper provides a review of the evolution of accounting treatment suggests a methodology for estimating market value of assets and liabilities extends that market value to the value of the firm using OAVDE and illustrates how this methodology can be incorporated into an insurance firm's financial management. From Society of Actuaries Financial Reporting Monograph, M-AS99-1.

Description: This article looks at the purpose of the closed block, how it works, what some of the drawbacks are, the implementation of the concept and if there are any preferable alternatives to the closed block. From Society of Actuaries Financial Reporting Monograph, M-AS99-1.

Description: This article looks at the areas that affect financial reporting by insurance companies. From Society of Actuaries Financial Reporting Monograph, M-AS99-1.

Description: This paper is concerned with the fundamental nature of life insurance company earnings. The operation of the policy reserve system as the timing mechanism which determines the incidence of earnings is discussed, and the concept of release from risk is described. From Society of Actuaries Financial Reporting Monograph, M-AS99-1.