Accounting Standard Updates

NAIC SAPWG January 2022 Meeting Highlights – Life Reinsurance Disclosure Clarifications

Article reading time: 1 minute 30 seconds

Hot Take:

Hot Take

The NAIC Statutory Accounting Principles Working Group (SAPWG) conducted a conference call on January 27, 2022, and adopted by e-vote certain clarifications to SSAP 61R – Life and Health Reinsurance (“SSAP 61R”) as it relates to life reinsurance disclosures and associated audit notes originally adopted in December 2020. The revisit to this topic was prompted by members of the American Institute of Certified Public Accountants (AICPA) NAIC Task Force desiring further explanation.

It is suggested to keep an eye on this as the agenda item was given a shortened exposure (January 14, 2022) in order for SAPWG to adopt for the 2021 year-end effective reporting.

Full Article


The original 2020 reinsurance disclosure updates were adopted in SSAP No. 61R through agenda item 2017-28: Reinsurance Risk Transfer for Short-Duration Contracts.  Following the 2020 adoption, several indistinct areas were observed by both auditors and preparing parties, who subsequently requested further clarification.  The 2022 adoptions streamline the scope of the original disclosures and clarify certain content requirements.

So, What’s the Rub?

  • The property & casualty reinsurance supplemental schedules, including one P&C disclosure, are not comparative, and only focus on the current reporting period. Accordingly, interested parties questioned the comparative nature of the life reinsurance model.  NAIC staff confirmed this inquiry and suggested modifications to the life reinsurance supplemental information to only apply to reinsurance agreements effective in the current period, thereby removing references to comparative disclosure;
  • Further, revisions were made to clarify that information shall reside in the supplementary schedules unless no contracts were acknowledged as being subject to the disclosures. If no contracts were recognized, the disclosure noting no such exposure could reside in either the audited note or the supplementary schedules;
  • Reference to assumed reinsurance was removed from the scope of the initial SSAP 61R disclosure. The original structure of SSAP 61R was based upon the infrastructure of SSAP 62R – Property and Casualty Reinsurance, which only references ceded reinsurance contracts.  Consequently, the change was made to provide consistency with the P&C promulgation.

 Keep an eye on this as it is effective for 2021 year-end reporting disclosures.