Issues & Trends | May 2019

Insurance: NAIC 2019 spring meeting

KPMG reports on actions taken on conference calls and at the Spring 2019 meeting of the National Association of Insurance Commissioners. The NAIC discussed recent accounting change and regulatory developments impacting insurance companies. 


NAIC 2019 Spring Meeting

  • All insurance companies

Relevant dates

  • Effective immediately, unless otherwise indicated

Key impacts

On conference calls and at its Spring meeting, the National Association of Insurance Commissioners (NAIC) adopted the following:

  • Revisions to SSAP Nos. 2R, 26R, and 86 stating that structured notes, except for mortgage-referenced securities, should be reported as derivatives under SSAP No. 86. Mortgage-referenced securities will be in the scope of SSAP 43R. The revisions will be effective December 31, 2019
  • INT 19-02 that added a limited scope exemption to SSAP No. 26R and accounting guidance to SSAP No. 43R for securities exchanged as part of the Freddie Mac Single Security Initiative
  • Revisions to SSAP No. 16R adopting, with modification, the US GAAP guidance for implementation costs of a cloud hosting arrangement. The revisions will be effective January 1, 2020 with early adoption permitted

The NAIC exposed the following:

  • SSAP No. 22R and the related issue paper rejecting US GAAP guidance on operating leases. Additional revisions would incorporate, with modification, US GAAP guidance on sale-leaseback transactions, lessor accounting and leveraged leases
  • Revisions to SSAP Nos. 68 and 97 clarifying that the purchase price and goodwill from the acquisition of a holding company is required to be attributed to the downstream entities that the holding company directly owns
  • Revisions to SSAP No. 97 clarifying when insurers can apply the look-through approach and when goodwill can be admitted

Report contents

  • Meeting highlights
  • Investments
  • Other accounting highlights
  • Principle-based reserving
  • Variable annuities
  • Group capital calculation
  • Covered agreement
  • Risk-based capital



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