Accounting Standard Updates
12 Days of SSAP: Weighted Averages – SSAP 43R
Article reading time: 30 seconds
Hot Take:
As the holidays approach, JLK Rosenberger is taking a new perspective on a holiday classic – the Twelve Days of Christmas. Rather than filling your head with turtle doves and gold rings, we are focusing on the latest changes to SSAP and how they will impact your insurance company in 2020 and beyond.
This article covers the latest on reporting NAIC designations as weighted averages, SSAP No. 43R – Loan-backed and Structured Securities.
Full Article
SSAP 43R – Reporting NAIC Designations as Weighted Averages
SAPWG provided clarification for the accounting and reporting for instruments acquired in lots under SSAP 43 – Loan-backed and Structured Securities. Principally, the amendment addresses the question if securities acquired under the same CUSIP, at different prices, can report NAIC designations using the weighted average method as defined within the SVO standards, or whether these individual lots should be separately designated with different rating even if under the same CUSIP ID. Adopted revisions require securities with differing NAIC designations by lot to be reported in the aggregate at the lowest NAIC designation or separately by lot.
You can read more SAPWG updates from the Summer meeting in our original SSAP Chat article here.
