Description: Welcome to the May edition of The Financial Reporter! In her “Chairperson's Corner”, Joy Zhang highlights the section's upcoming activities for the year and ways for everyone to get engaged.

Description: In 2018, the Financial Accounting Standards Board (FASB) adopted significant revisions to the U.S. GAAP insurance accounting literature, via Accounting Standards Update (ASU) 2018-12. The title of ASU 2018-12 is “Targeted Improvements to the Accounting for Long-Duration Contracts,” and as a result a common acronym for ASU 2018-12 is LDTI (long-duration targeted improvements).

Description: Interest Maintenance Reserve ("IMR") has become a hot topic recently due to rising interest rates, causing decreases or even negative IMR balances for some insurers. This article aims to exam some new questions facing financial reporting actuaries: - How should negative IMR be treated for statutory reporting? - What are the other actuarial implications of negative IMR? - What have regulators done and/or plan to do about negative IMR? - What are potential mitigants?

Description: "Are you a health actuary affected by recent developments in business practices and accounting standards that have created situations in which you may be involved in estimating balances under accounting rules that differ from those typically used by insurers? In this session you will learn about situations where non-insurance accounting regimes may intersect actuarial practice, with an intended focus on two particular topics. One topic is general accepted accounting principles (GAAP) for insurance brokers under ASC 606 (Revenue Recognition) for commissions on Medicare Advantage and Medicare Supplement contracts, where the broker may get to recognize the expected value of all future commissions on a contract as revenue when the contract is placed. The other topic is GAAP under ASC 460 (Guarantees) in situations where a non-provider entity is bearing risk related to health care services, which can occur under the CMS Direct Contracting/ACO REACH model or under private sector care coordination contracts."

Description: Over the last few years, a significant amount of US annuity and pension business has been reinsured with offshore companies, both affiliated and non-affiliated. Hear experts discuss different reserve and capital regimes between the US and offshore jurisdictions, as well as US regulator concerns and responses. The attendees will learn the reasons companies use offshore reinsurance, and improve their understanding of the discussion of proposals to increase US regulator and consumer comfort with companies outside of US jurisdiction.

Description: This study is an update of a 2015 study that illustrates the differences that occur when measurement is made under different accounting bases. The observations come from research performed on two products (term life insurance and universal life insurance with secondary guarantees.

Description: Back by popular demand, it is that time of year for this well-liked annual webcast. Get ready to hear from three expert speakers, who will be covering the latest considerations for the year's U.S. statutory financial reporting work. 2021 has proven to have been quite remarkable, providing many important topics to be discussed.

Description: This session will cover the treatment of various forms of reinsurance under Valuation Manual-20 (VM-20). Speakers will discuss the implications of various types of reinsurance agreements on the calculation of principle-based reserves (PBR). This will include coinsurance and modified coinsurance, guaranteed and non-guaranteed yearly renewable term (YRT), as well as financial reinsurance.

Description: A description and status update on all recent research reports sponsored by the Financial Reporting Section.

Description: This article outlines how Bermuda advanced in global tax compliance through the enactment of the Bermuda Corporate Income Tax (CIT) Act of 2023, which will take effect for tax years beginning on or after January 1, 2025. The Bermuda CIT rules incorporate key foundational definitions from the Organization for Economic Cooperation and Development’s (OECD) Pillar Two GloBE model rules, while also exhibiting significant differences from Pillar Two. The article discusses the various elections available for taxpayers, key mechanics of the CIT, and the latest administrative guidance released by the Government of Bermuda.