Description: Summary - VM-22 will be finalized during 2025, with an optional phase-in period beginning Jan. 1, 2026, and mandatory implementation by Jan. 1, 2029. This session will discuss the regulation, including background, calculations, high-level results from the field test, and other modeling, as well as key considerations and documentation for actuaries and companies as they prepare to transition their fixed annuities into a principle-based reserve framework. Attendees will better understand the new VM chapter and some of the thinking behind the decisions made.

Description: Improve your financial reporting knowledge with this SOA e-course. It will help you understand financial statements and regulatory capital requirements.

Description: In the fourth quarter of 2022, publicly traded life insurers reported on their financial and operational activities, which included a downturn in income from alternative investments, the continuing impact of COVID, the impact of equity market returns on variable annuity products, and growth trends related to pension risk transfer transactions.

Description: "The purpose of this presentation is to give an overview of the CP2 requirements for Bermuda statutory reserves and capital, which went into effect for 2024 reporting, along with a summary of the impact of these new requirements. Some of the CP2 changes include bringing the Bermuda Solvency Capital Requirement (BSCR) more in line with other capital reporting regimes, such as Solvency II. For example, lapse, expense, interest rate, and equity shocks are now required to compute the lapse, expense, interest rate, and equity shock components of required capital. The Bermuda Monetary Authority (BMA) also clarified in the CP2 paper that borrowing under any form is not permitted in the Scenario Based Approach to computing the Best Estimate Liability (BEL), and realistic transaction costs must be reflected. Proving model safety controls are in place is another key component of the CP2 paper, and reinsurers/insurers must prove their model governance is up to standard. These new requirements pose operational challenges for insurers and reinsurers reporting under the Bermuda framework, and have an impact on the economic balance sheet. The presenters include folks working with AXIS software from Moody's, who have been involved in enhancing the software to align with Bermuda reporting standards, and consultants from Valani who worked with many companies on setting up their Bermuda reporting processes. All presenters are very knowledgeable on Bermuda reporting, and have observed the impact of the CP2 requirements. The presenters want to share their knowledge with fellow actuaries at this industry meeting, and hopefully inspire insightful discussions."

Description: Actuarial Asset-Liability models are indispensable for asset adequacy analysis, ERM, and economic capital. Actuaries often excel in modeling liabilities but tend to rely on Externally Projected Asset (EPA) cash flows from third-party sources for assets.

Description: The article investigates the reasons behind non-zero financial implications for fully reinsured businesses within the regulatory frameworks of US GAAP Long Duration Targeted Improvements (LDTI) and International Financial Reporting Standards (IFRS) 17. It helps companies grasp the nuances of these standards, thereby enhancing their risk management strategies, improving regulatory compliance and optimizing their decision-making processes.

Description: The introduction and effective application of US GAAP LDTI have increased the scrutiny of those reviewing the updated financial results. That is because LDTI has resulted in significant changes in actuarial reserving and deferred acquisition cost (DAC) models for long-duration contracts, including significant changes to data, assumptions and required disclosures. In light of the changes, greater reliance has been put on companies’ model risk management (MRM) teams and model validations to assess the conceptual soundness and accuracy of their companies’ actuarial models and to assess that the underlying data and process utilized are suitable and appropriate. This article covers a brief background on model validation, walk through a sample LDTI-focused model validation framework/test plan, then provide insights on common LDTI-related validation observations based on the authors' prior validation experience.

Description: As an addendum to a July 2022 article, this article restates the formulas then presented for a framework to measure the reinsured portion of a direct loss from capping a net premium ratio or flooring a liability. The article corrects a flaw in one of the original formulas and shows, by example, how the framework can be applied to a specific application of reinsurance accounting.

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.

Description: This presentation shares experience and ideas of both AIA Group and AIA China during implementation of the IFRS17 project and will discuss potential impact and outlooks in the domestic market from IFRS 17. This presentation includes a general overview of an IFRS17 implementation project, focusing on changes and requirements, as well as the resources cost of the main challenges and relative resources.