Issues & Trends | January 2020

Insurance statutory reporting - January 2020

KPMG summarizes new and revised statutory accounting standards for 2019 and 2020 financial reporting by insurance companies. This follows the discussions and new guidance adopted by the NAIC on conference calls and at its 2019 Fall Meeting.


  • All insurance companies

Key impacts

Effective for 2019 reporting

  • SSAP Nos. 2R, 26R, and 86 revisions stated that structured notes, except for mortgage-referenced securities, should be reported as derivatives under SSAP No. 86. The revisions included mortgage-referenced securities in the scope of SSAP 43R. 
  • SSAP No. 30R expanded the definition of common stock to include US SEC registered closed-end funds and unit-investment trusts and foreign registered open-end investment funds.  
  • SSAP No. 68 clarified that goodwill resulting from an insurer’s acquisition of a Subsidiary, Controlled or Affiliated (SCA) entity when pushdown accounting is applied should be included in the goodwill admittance limitation.
  • SSAP No. 69 clarified that restricted cash and cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period totals shown in the statement of cash flows.
  • SSAP No. 86 incorporated the hedge effectiveness documentation requirements included in the recent targeted improvements to the US GAAP derivative accounting model. 
  • SSAP No. 86 clarified that derivatives not used in hedging, income generation or replication transactions should be reported at fair value and nonadmitted.
Effective for 2020 reporting and after
  • SSAP No. 22R rejected US GAAP guidance on operating leases. Additional revisions incorporate, with modification, US GAAP guidance on sale-leaseback transactions, lessor accounting and leveraged leases. Effective January 1, 2020 for all new leases, and for existing leases reassessed due to a change in terms and conditions. Early adoption is permitted.
  • SSAP No. 61R and Appendix A-791 added disclosures and question and answer guidance for contracts with medical loss ratios and risk transfer for yearly renewal term (YRT) reinsurance contracts for group term life business. The disclosures are effective December 31, 2020 and the YRT reinsurance question and answer guidance is effective for contracts in effect as of January 1, 2021.
  • SSAP No. 108 prescribed accounting and reporting guidance for derivatives that hedge interest rate risk of variable annuity guarantees reserved under Valuation Manual (VM)-21. Effective January 1, 2020, with early adoption permitted as of January 1, 2019.

Report contents

  • Overview of new statutory guidance
  • 2019 reporting
  • 2020 reporting and later