Transcription of Earnings Emergence - SOA
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Earnings Emergence Insurance Accounting under Multiple Financial Reporting Bases June 2015 Earnings Emergence Insurance Accounting under Multiple Financial Reporting Bases. CAVEAT AND DISCLAIMER The opinions expressed and conclusions reached by the authors are their own and do not represent any official position or opinion of the Society of Actuaries or its members. The Society of Actuaries makes not representation or warranty to the accuracy of the information. Copyright 2015 All rights reserved by the Society of Actuaries SPONSORS Financial Reporting Section Reinsurance Section Committee on Life Insurance Research AUTHORS Robert Frasca, FSA, MAAA Asad Khalid, FSA, MAAA Francis Rahil, FSA, CERA Bruce Rosner, FSA, MAAA Joy Zhang Ernst & Young LLP Earnings Emergence - Insurance accounting under multiple financial reporting bases 2 Acknowledgments We would like to acknowledge and thank everyone who contributed to the success of this study: Ronora Stryker and Jan Schuh from the Society of Actuaries for providing leadership and coordination The Project Oversight Group for guidance throughout this project: Sam Keller (chair) Yongyi Bi Pete Bondy Katie Cantor Tom Herget Shirley Lowe Ot
Earnings emergence - Insurance accounting under multiple financial reporting bases 6 to incorporate pads within the US Statutory valuation while the market-consistent balance sheet shifts slightly more conservative, effectively penalizing the product for its real-world foundation for crediting interest.
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