SAP - Statutory Accounting Principles

  • SAP, SSAP
  • 1987 - SOA - Valuation Actuary Handbook - Chapter I - Insurance Company Statutory Valuation, Society of Actuaries - 34p
  • The NYDFS recognizes only statutory accounting practices (“SAP”) prescribed or permitted by the State of New York for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under New York Insurance Law.
  • The National Association of Insurance Commissioners (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by the State of New York.
  • The State of New York has the right to permit other specific practices that deviate from prescribed practices. (p32/19)

2020 - AIG - Annual Statement for the Year 2020 OF THE United States Life Insurance Company in the City of New York - 460p

  • 2021 0225 - YPFS Lessons Learned Oral History Project: An Interview with Eric Dinallo - 19p
    • Dinallo:  I decided that I had enough information, and enough belief in the statutory accounting, which we can talk about. Which is really part of the story. That I was going to go out there and make statements about my confidence in the insurance companies of AIG.
      • Because I did believe that on a statutory accounting basis, they had more than enough assets to match their long-term liabilities on a statutory accounting basis. Not mark to market. Which Geithner to this day …
    • YPFS: Can you talk a little bit more about that?
    • Dinallo: When Geithner heard this, I made this joke. I don't know if I've been quoted.
      • I think he thought I was explaining the Mayan calendar to him. It was so alien and so weird.
      • But basically, life insurance companies have long-term liabilities, and they match it with long-term assets that are going to perform by maturing 20 years from now.
      • That's why so much of the reserves are put towards basically debt, Treasuries, etc., that are highly rated.
        • So that they will almost certainly, hopefully, certainly perform.
        • Which means mature. You're going to get the coupon along the way, albeit a small yield.
        • The volatility before maturation over the 20 years does not count.
      • This is the biggest debate in insurance right now.
        • Between Europe, the feds, and the United States.
          • That the inter-period where there's volatility, and this is what I mean by, back with Shelby.
          • They were like, "Oh my god, they're insolvent."
          • I'm like, "They're not insolvent.
            • They may be, on some reporting basis, marginally insolvent."
  • SSAP - Statement of Statutory Accounting Principles
    • 51 - Statement of Statutory Accounting Principles No. 51  -Life Contracts
    • Statutory Issue Paper No. 56 - Universal Life-Type Contracts, Policyholder Dividends, and Coupons - STATUS - Finalized March 16, 1998 - 12p
    • Original SSAP: SSAP No. 51; Current Authoritative Guidance: SSAP No. 51R
      • Flexible Premium Universal Life-Type Contracts
        • Alternative minimum reserves shall be required, if applicable, for flexible premium universal life-type contracts if the guaranteed maturity premium is less than the valuation net premium.
    • SSAP 86 - Accounting for Derivative Instruments and Hedging, Income Generation, and Replication (Synthetic Asset) Transactions, Supersedes SSAP No. 31 - 41p
      • SSAP No. 86—Derivatives Ref #2021-20 - Measurement of Excluded Components - 10p