Insurance: Statutory Reporting – February 2024

Effective for 2023 reporting:

• SSAP Nos. 20 and 21R clarified that invested assets pledged as collateral for admitted collateral loans must qualify as admitted invested assets.
• SSAP No. 34 added disclosures for interest income due and accrued and for PIK interest included in the current principal balance.
• SSAP Nos. 43R and 48 clarified the scope and reporting of residual interests and residual security tranches.
• SSAP No. 54R clarified that a gross premium valuation under Appendix A-010 and cash flow testing under AG 51 are both required.
• SSAP No. 86 adopted, with modification, US GAAP guidance to determine hedge effectiveness and guidance about portfolio and partial-term fair value hedges.
• INT 23-01 provided optional, temporary guidance for negative (disallowed) IMR.
• INT 23-03 provided guidance on assessing the effects of CAMT for periods on or after the 2023 year-end.
• INT 23-04 provided accounting and reporting guidance for ceding entities with reinsurance receivables from the estate of Scottish Re in liquidation.

Effective for 2024 reporting:

• SSAP No. 7 revised the Annual Statement Instructions to remove guidance that permits the allocation of non-interest related losses to IMR and to clarify that these non-interest related losses should be allocated to AVR.

Effective for 2025 reporting:

• SSAP No. 2R further restricted the investments that are reported as cash equivalents or short-term investments.
• SSAP Nos. 26R, 43R and other SSAPs added guidance for the principles-based bond definition.