Issues & Trends | May 2021



Insurance Statutory Reporting – May 2021

KPMG summarizes new and revised statutory accounting standards for 2020 and 2021 financial reporting by insurers.


  • All insurance companies

Key impacts

Effective for 2020 reporting:

  • SSAP No. 2R clarified  the types of cash pooling structures and investments required to be maintained in those structures for the cash pools to qualify as other cash equivalents.
  • SSAP Nos. 2R and 103R provided a principle about when related party or affiliated investments, other than qualifying cash pooling structures, can be classified as cash equivalents or short-term investments, and added disclosures.
  • SSAP Nos. 5R and 97 required insurers to track unreported equity method net losses of an investment in a Subsidiary, Controlled and Affiliated (SCA) entity and record a liability under SSAP No. 5R to the extent there is a financial guarantee or commitment.
  • INT 20-03 adopted guidance from the Coronavirus Aid, Relief and Economic Security (CARES) Act and a joint statement of the federal and state banking regulators on the accounting approach for certain loan modifications in response to COVID-19.
  • INT 20-04 provided limited time exceptions to defer impairment assessments for bank loans, mortgage loans and investments that predominantly hold underlying mortgage loans affected by forbearance or modifications in response to COVID-19.
  • INT 20-07 provided certain practical expedients in assessing whether modifications to debt instruments in response to COVID-19 are insignificant under SSAP No. 36 and whether a change is substantive under SSAP No. 103R.
  • INT 20-08 provided guidance on accounting for premium refunds issued in response to COVID-19 that are not required under policy terms, refunds required under policy terms, rate reductions on inforce and renewal business, and policyholder dividends. It added an aggregate disclosure of all items related to COVID-19 addressed in INT 20-08.
  • INT 20-10 clarified the accounting and reporting of conforming and nonconforming credit tenant loans.

Effective for 2021 reporting:

  • SSAP No. 32R improved the preferred stock definitions, revised the measurement guidance and clarified the impairment guidance for preferred stock. Early adoption is permitted.
  • SSAP No. 25 clarified the types of entities and individuals considered related parties. The revisions also include a new Schedule Y disclosure recommended by the Group Solvency Issues Working Group.

Report contents

  • Overview of new statutory guidance
  • 2020 reporting
  • 2021 reporting and later

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