Issues and Trends | February 2022

 

Insight

Insurance Statutory Reporting – February 2022

KPMG summarizes new and revised statutory accounting standards for 2021 and 2022 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. 61R clarified the life and health reinsurance disclosures. 
  •  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 that allows 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.

Effective for 2022 reporting:

  •  SSAP No. 43R clarified that residual tranches or interests are recorded at the lower of amortized cost or fair value and reported on Schedule BA. Effective December 31, 2022. Early adoption is permitted. 

 

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