Description: Under long-duration targeted improvements (LDTI), there are a few insurance liability balances that now are required to be fair valued, market risk benefit (MRB). The session will start from all the applicable balances that are required to be fair valued under LDTI ((i.e., MRB, financial accounting statement (FAS) 133, value of business acquired (VOBA) upon business combination)). The session will use a case study to discuss some of the nuances and general considerations for an MRB, FAS 133 and VOBA balances for a business combination for an fixed indexed annuity (FIA) contract. The case study will discuss some MRB fair value considerations and followed by FAS 133 fair value techniques. It will go over VOBA fair value estimation by using actuarial appraisal method with a few twists (e.g., using market yield in generating distributable earnings is better than using book yield and adjusted to bring it to fair value later on).

Description: In recent years, there has been a significant increase in life and annuity business transactions transferring blocks of business across jurisdictions. These transactions raise important questions for stakeholders-including policyholders, regulators, rating agencies, investors, and companies themselves-about the drivers of financial results under different regulatory and accounting regimes.As financial reporting frameworks grow more complex-whether US Statutory, IFRS 17, US GAAP, or Solvency II-stakeholders are demanding deeper insights into how results are determined and how they compare across jurisdictions. Understanding these differences is critical for assessing financial performance, capital strength, and risk exposures, particularly in a cross-border context.To address this need, many companies are developing and applying bridging analyses-such as waterfall analyses, step-by-step reconciliations, and other frameworks-to explain how and why results differ between reporting bases. These approaches help clarify key drivers and provide transparency to stakeholders.In this session, representatives from leading companies will share practical approaches they use to bridge these gaps, offering insights into the methodologies and analyses that have proven most effective in navigating cross-jurisdiction financial reporting challenges. Attendees will gain a clearer understanding of cross-jurisdiction reporting differences and take away ideas for applying effective bridging techniques within their own organizations.

Description: With higher interest rates and aging populations, the Bermuda offshore reinsurance market has been heating up, particularly to firms backed by asset management firms and private equity. Increased competition along with changing regulatory requirements, and evolving expectations around model governance have actuaries facing heavier production and results explanation workloads. This creates additional challenges on top of an already complex Bermuda reporting regime, particularly with the Scenarios-Based Approach (SBA) and Bermuda Solvency Capital Requirement (BSCR).

Description: Value of new business (VNB) is being used by many companies for various purposes including: internal and external financial reporting, incentive compensation, pricing, capital management, and comparing products, distribution channels or regions on a consistent basis. Presenters will discuss how and why value of new business is used within their companies including: the various methodologies considered, some of the benefits and challenges related to implementing VNB, integrating VNB within their business as usual processes, and managing to VNB.

Description: Indexed universal life (IUL) continues to be the most popular universal life (UL) product with sales reaching $1B in Q4 2023, according to LIMRA. There is little long-term experience for IUL and many companies value and model IUL just like UL, but there are material potential differences that need to be considered for valuation and projection purposes.

Description: Even though the 2018 Tax Cut and Job Act significantly simplified the tax valuation methodology, taxation can impact the valuation outcomes and financial decisions. This presentation will start with an overview of the key taxation topics relating to valuation work, and then dive into more complex topics, such as the deferred tax asset/liability handling and reinsurance implications.

Description: As the size of the life reinsurance market in Bermuda has grown to over half a trillion dollars at the end of 2021, more and more actuaries are getting involved with this 21 square mile North Atlantic island in one way or the other. Come explore a fundamental understanding of the Bermuda solvency framework and an overview of its upcoming changes.

Description: The article discusses the continued popularity of indexed UL insurance and possible reasons why a company's actual indexed UL earnings may be below their original pricing expectations for the product. The article discusses several key items that may be the source of that underperformance (e.g., hedge ineffectiveness, policyholder behavior) and the need to monitor earnings and perform analyses to better understand those potential sources.

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.