The evolution of bond definition began almost five years ago, at which point no one expected it to result in such substantial changes to SSAPs. We’ve followed the timeline closely until the final effective date for adopted changes was announced last year. As we reflect, the NAIC adoptions related to the bond definition project mark some of the most si…
Background: In 2013, SAPWG began its Investment Classification Project to commence a comprehensive review of the investment SSAPs in order to clarify definitions, scope, and the accounting methodology, along with related reporting. The project specifically targeted an intent to assess investments that waver outside the existing investment-type d…
Acquisitions and Disposals The first issue is reporting acquisitions and disposals of securities. Even though we do not need to worry about schedules D and BA for quarterly reporting, the acquisition and disposal schedules included in the quarterly statement beginning with the first quarter filing will have new reporting categories. If disposals are r…
As we reflect, the NAIC adoptions related to the bond definition project mark some of the most significant transformations insurers will confront by 2025. Issue Paper No. 169 represents the culmination of several years of discussions and negotiations within the SAPWG group and interested parties. The issue paper modernizes previous accounting langua…
Below is a recap of changes made under the project and where the new guidance can be found in SAPs. Please note that we removed “Revised” and “R” identifiers from SSAP titles. The NAIC considered them no longer useful, and any references are being removed from the AP&P manual moving forward. SSAP Nos. 26 – Bonds and 43 – Asset-Backed Securiti…
This began as a smaller project and has evolved into a major review and refinement of the definition of a bond and what qualifies as a bond to be reported on Schedule D-1 of the annual statement. Its impact will be pervasive to all insurance entities investing in the bond markets. Interested parties (industry) were highly involved in the final outcome of this u…
VOSTF Exposes Proposed Amendments to the P&P Manual of the NAIC Investment Analysis Office – ETF Bond and Preferred Stock Clarification Background: The VOSTF previously requested the SVO to assess the existing guidance with the objective of providing additional clarity and acceptability to investors regarding the use of derivative…
During the 2024 NAIC Summer National Meeting, the Statutory Accounting Principles Working Group (SAPWG) exposed revisions to SSAP No. 86—Derivatives with a proposal to require bifurcation of debt securities with derivative wrappers or components if the item did not reflect a structured note. The issue came up when the regulators got concerned with the…
Don’t miss the opportunity to hear from Connie Jasper Woodroof as she shares her expansive knowledge at S.S.A.P. Chat Live 2023. Connie will present two sessions: the Annual Statement Update and the NAIC Update. She will cover substantive changes in the Life/Fraternal and Property/Casualty statements, including the newly allowed Negative Inte…
It is time to review some of the current changes for statutory accounting principles and discuss reporting requirements for the future. (Additional updates will be published for the 2022 NAIC Fall National Meeting.) The Statutory Accounting Principles Working Group (SAPWG) published two memorandums on their website on July 21, 2022, regarding relate…
Background Stakeholders have been awaiting valuation and disclosure direction in the crypto asset arena for quite some time. The recently issued standard now validates the US GAAP accounting for non-investment entities by requiring crypto assets to be measured at fair value for each period reported, with the changes in that value recognized in net inco…
Adopted Changes SSAP No. 30R – Unaffiliated Common Stock SSAP No 32R – Preferred Stock Adoption includes minor revisions clarifying that investments that are, in substance, residual interests should be reported on Schedule BA on the dedicated reporting line for residuals. No revisions to the annual statement instructions were made, as the Schedule BA i…
