Two new Statements of Statutory Accounting Principles will change the
method by which companies calculate and record retirement obligations,
A.M. Best reports in the latest issue of BestWeek U.S./Canada.
The changes will most likely impact statutory financial statements for
property/casualty and life/health companies with defined-benefit pension
plans or other post-retirement benefit plans. Before SSAP 92 and SSAP
102 were adopted, under-funded pension and other post-retirement
employee benefit obligations may not have been recognized on insurance
companies' statutory balance sheets. The new standards also require that
benefits expected to be earned by unvested participants be included in
service cost. In addition, unrecognized actuarial losses/gains,
unrecognized prior transition obligations/assets and other unrealized
gains/losses now must be reflected in benefit plan costs.
BestWeek is published by A.M. Best Co. for insurance
professionals. To subscribe, visit www.ambest.com/sales/BestWeek.
View the new weekly video program BestWeek Live at http://www.ambest.com/media/MA.asp vid=bwl1133.
In this episode, Senior Associate Editor Meg Green discusses how some
insurance executives at the recent Property/Casualty Insurance Joint
Industry Forum spoke out against Solvency II, while BestWeek
Europe Editor Dave Pilla looks at the slow progress surrounding the
regulatory framework; Washington Bureau Manager Jeff Jeffrey talks about
the future of the federal terrorism insurance backstop and whether it
may encompass cyber coverage; and Senior Business Analyst Carol
Demyanovich details how the A.M. Best stock indexes performed in 2012.
Founded in 1899, A.M. Best Co. is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
[ Back To NFVZone's Homepage ]