Issues & Trends | May 2018

Insurance statutory reporting – May 2018

KPMG summarizes new and revised statutory accounting standards for 2017 and 2018 financial reporting by insurance companies. This follows the discussions and new guidance adopted by the NAIC on conference calls and at its 2018 Spring Meeting.


NAIC 2018 Spring Meeting

  • All insurance companies

Relevant dates

  • Effective immediately

Key impacts

Effective for 2017 reporting includes:

  • SAP No. 2R reclassified money market mutual funds to cash equivalents and required them to be reported at fair value
  • SSAP No. 26R removed Securities Valuation Office-designated bond Exchange Traded Funds from the definition of a bond, and required identifying instruments that will be measured using systematic value on January 1, 2018
  • SSAP No. 35R allowed expected renewals of short‑term contracts for long‑term care assessments to be considered in determining the premium tax credits and policy surcharge assets recognized when accruing guaranty and fund liability assessments. It also allowed the discounting of guaranty fund assessments from insolvencies of insurers that wrote long‑term care contracts
  • SSAP Nos. 55 and 65 added disclosures about significant changes in the methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses. Disclosures from ASU 2015‑09, Disclosures about Short‑Duration Contracts, not already addressed elsewhere in statutory reporting were rejected
  • SSAP No. 103R added enhanced disclosures for repurchase and reverse‑repurchase agreements, and added accounting guidance for short sales, and guidance for secured borrowing transactions when the insurer is the transferee
  • INT 18-01 provided a limited time, limited scope exception to not require the recognition of changes in reasonable estimates (resulting from the Tax Cuts and Jobs Act after the issuance of statutory annual statements) as Type I subsequent events in the audited financial statements

Effective for 2018 reporting:

  • SSAP No. 26R provided separate accounting guidance for the use of systematic value for ETF instruments that will be effective January 1, 2018
  • SSAP No. 100R allowed the use of net asset value (NAV) per share as a practical expedient and added disclosures. Early adoption is permitted for 2017 reporting

Report contents

  • Overview of new statutory guidance
  • 2017 reporting
  • 2018 reporting and later

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