September 26, 2024 | 2:00 pm - 3:00 pm ET | Complimentary
Simplifying the Shift to Principles-Based Bond Accounting for Statutory Insurers
The Insurers’ Guide to Principles-Based Bond Accounting
This recorded session discusses the principles-based bond definition (PBBD) project for statutory filer insurance companies that goes into effect on January 1, 2025. The PBBD project is one of the most significant National Association of Insurance Commissioners (NAIC) accounting changes in several years. Learn the new bond principles and understand how to apply them to your bond portfolio in a streamlined way to allow for a smooth transition.
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About the Webinar
Main Takeaways
- Discover what the new principles-based bond definition means for different types of bonds and how it applies to statutory accounting.
- Learn about the changes to the annual financial reports, specifically on Schedule D and Schedule BA.
- See clear examples of how these changes apply to different securities.
- Explore practical tips to help your team make the implementation process smoother.
This OnDemand Session is Great For:
- CFOs
- Controllers
- Accounting managers
- Accounting professionals
PBBD Overview
- Effective Date
- The new guidance takes effect on January 1, 2025; early adoption is not permitted.
- Principles-Based Approach
- Focuses on the substance of securities, shifting from rigid criteria to flexible, principle-driven guidelines.
- Reporting Changes
- Revised Schedule D Part 1 for ICOs and ABS, with new categories and clearer distinctions between types of securities.
- Schedule BA Transition
- Debt securities that no longer qualify as bonds will transition to Schedule BA under SSAP No. 21, Other Admitted Assets.
- Flexibility for Evolving Markets
- The guidance allows bond reporting to adapt to the evolving and increasingly complex bond market.
- Impact on Insurers
- Some securities may move from Schedule D to Schedule BA, but such transfers are expected to be limited.
Meet
Our Panel
Lauren Darr, CPA
Partner
Johnson Lambert
Rachel Ferguson, CPA
Partner
Johnson Lambert
Laurie Madonna
Director, Regulatory Policy & Research
Conning