Key Takeaways
- The Statutory Accounting Principles Working Group (SAPWG) made two SAP clarifications that will be incorporated into the Accounting Practices and Procedures (APP) Manual.
- The new SAP clarifications, INT 23-04 (No. 61R) and 2023-23 (Various SSAPs) are effective December 31, 2023.
- The next SAPWG meeting is scheduled for March 2024.
On January 10, 2024, The Statutory Accounting Principles (E) Working Group (SAPWG) made two SAP clarifications that will be incorporated into the As of March 2023 Accounting Practices and Procedures Manual. An exposure draft is expected in February 2024 regarding pooling arrangements for insurers. Be on the lookout for this item for potential review and comment.
The following is a summary of the clarifications adopted:
New SAP Clarifications
The SAPWG adopted the following SAP clarifications to statutory accounting guidance:
- INT 23-04 (SSP No. 61R) – INT 23-04: Scottish Re Life Reinsurance Liquidation Questions provides accounting and reporting guidance for ceding entities with reinsurance balances to or from Scottish Re, a U.S.-based life reinsurer in liquidation. The guidance focuses primarily on reinsurance recoverables. This clarification is effective December 31, 2023.
- 2023-24 (Various SSAPs) – Revisions reject ASU 2016-13 and related subsequent ASUs in various SSAPs and INT 06-07: Definition of Phrase “Other Than Temporary.” These revisions reject CECL for statutory accounting. This clarification is effective December 31, 2023.
Next Steps for the Insurance Industry
We will continue to monitor development from the SAPWG when additional meetings are held. The next meeting of the SAPWG is scheduled for March 2024 in Phoenix, Arizona. If you have questions about how these adoptions will affect your organization, we can help.
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