GAAP Accounting for Profits Followed by Losses in Long-Duration Contracts Practice Note Webinar
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July 1, 2015
12:30-2:00 p.m.
During this webinar, members of the Profits Followed by Losses Subgroup provided an overview of the GAAP Accounting for Profits Followed by Losses in Long-Duration Contracts Practice Note.
The practice note was intended to be a resource for actuaries when identifying situations where an expectation of profits followed by losses exists on long-duration insurance contracts and determining the U.S. generally accepted accounting principles (GAAP) for the accounting treatment of those situations.
During the webinar, panelists provided background on:
- The Accounting Standards Codification (ASC) 944-60, Premium Deficiency and Loss Recognition guidance, which provides the accounting foundation for situations of profits followed by losses;
- The identification of profits followed by losses and common situations in which they are encountered; and
- Actuarial approaches that may be considered to address situations of profits followed by losses in GAAP-basis financial statements.
WEBINAR PRESENTERS
Robert Frasca, Chairperson, Profits Followed By Losses Subgroup
MAAA, FSA
A frequent speaker at industry seminars on financial reporting topics, Rob has contributed numerous articles to industry publications. He is co-author of the papers “Financial Statement Disclosure: the Needs and Practices Related to Financial Risk,” (2007) and “Embedded Value: Practice and Theory” (2009) both published in the Actuarial Practice Forum as well as a forthcoming paper, commissioned by the Society of Actuaries, on the comparison of multiple financial measurement bases. An active participant in industry groups, he recently completed a term as Chair of the Society of Actuaries’ Financial Reporting Section Council and currently serves on the American Academy of Actuaries’ Financial Reporting Committee where he chairs the Task Force on Profits Followed by Losses.
Charles Chacosky, Member, Profits Followed By Losses Subgroup
MAAA, FSA
At PwC, Chuck has provided auditing and consulting services to life insurance companies for US Statutory, US GAAP/IFRS, and European Embedded Value. His financial reporting practice has spanned the globe including international projects for Mexico, Bermuda, the Caribbean Islands, Australia and New Zealand, as well as Malta.
Chuck has been the appointed actuary for dozens of life insurance companies and captives during his career, recently including a New York domiciled entity and currently three life companies. Since 2012, he has served as the lead Director of the rehabilitation project of a Pennsylvania domiciled LTC carrier. Prior to joining PwC in 1997, Chuck was the president of a niche actuarial consulting firm for domestic and off-shore captives. He also served as Chief Actuary and COO of a group of life insurance companies.
Chuck graduated from the University of Pennsylvania’s Wharton School. He is a Fellow of the Society of Actuaries and a Member of the American Academy of Actuaries.
MODERATOR
Leonard Reback, Chairperson, Financial Reporting Committee
MAAA, FSA
WEBINAR RESOURCES
GAAP Accounting for Profits Followed by Losses in Long-Duration Contracts June 2015 Practice Note
CONTINUING EDUCATION CREDIT
The American Academy of Actuaries believes in good faith that your attendance at this live webinar, “GAAP Accounting for Profits Followed by Losses in Long-Duration Contracts Practice Note,” constitutes an organized activity as defined under the current Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States. Under these Qualification Standards, an hour of continuing education is defined as 50 minutes, and fractions of an hour may be counted.
