Insurance: Statutory Reporting – April 2025
ISSUES & TRENDS | APRIL 2025
We summarize new and revised statutory accounting standards for financial reporting by insurers in 2024, 2025 and thereafter.
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Applicability:
- All insurance companies
Key impacts
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.
- SSAP Nos. 15 and 86 added certain disclosures from ASU 2023-06 for unsecured commitments, lines of credit, repurchase and reverse repurchase transactions, secured borrowings and derivatives from ASU 2023-06, Disclosure Improvements; Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.
- SSAP No. 21 added disclosures of the total amount of collateral loans and collateral loans admitted and nonadmitted by qualifying investment type.
- SSAP Nos. 25 and 63 added guidance for transfers of assets when modifying intercompany pooling agreements and nullified INT 03-02.
- The ‘Revised’ and ‘R’ were removed from the SSAP titles, which previously identified substantively revised SSAPs.
Effective for 2025 reporting and thereafter:
- SSAP No. 1 added restricted asset disclosure for modified coinsurance and funds withheld assets reported on a cedent’s financial statements and a reconciliation between the restricted assets in the disclosure and those reported in the general interrogatories.
- SSAP No. 2 further restricted the investments that are reported as cash equivalents or short-term investments.
- SSAP No. 26 clarified the granularity of the disclosure of book adjusted carrying values, fair values, and unrealized gains or losses of bonds.
- SSAP Nos. 26, 43 and other SSAPs added guidance for the principles-based bond definition.
- SSAP Nos. 26, 30, 32, 43 and 48 updated to refer to SSAP No. 21 for the residual definition, accounting and reporting guidance.
- SSAP No. 21 added the earned yield with a cap method (the Allowable Earned Yield method) to measure residual tranches or interests, with a practical expedient that allows the use of the cost recovery method.
- SSAP Nos. 34, 48, 93 and 94 updated guidance for tax credit investments, by expanding the scope of SSAP 93 and 94, and adding consistency between SSAPs.
- SSAP No. 56 updated recognition and measurement guidance for the transfer of assets in exchange for cash between the general account and book value separate accounts.
- INT 24-02 added guidance for the Medicare Part D Prescription Payment Program.
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Statutory Reporting – April 2025
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