Issues & Trends | October 2021

 

Insight

Insurance statutory reporting – October 2021

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

Applicability

  • All insurance companies

Key impacts

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 was 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.
  • SSAP No. 71 clarified that acquisition costs are expensed as incurred, regardless of third-party arrangements.
  • SSAP No. 103R added disclosures about transfers of financial assets accounted for as a sale when the transferor maintains continuing involvement in the transferred financial assets.
  • INT 20-01 adopted ASU 2021-01 to allow an optional transitional expedient to continue existing hedging relationships in certain circumstances. This guidance will expire December 31, 2022.
  • INT 21-01 clarified that cryptocurrencies are nonadmitted assets.

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