Annuity Principle-Based Reserves Under VM 22 Practice Note

This practice note provides practical guidance for actuaries on implementing principle-based reserve valuation for non-variable annuity products under the VM-22 framework, as adopted by the NAIC. It covers exemptions, transition rules, calculation methodologies (including stochastic and deterministic reserves), asset modeling, assumption setting, and disclosure requirements. The practice note is intended to reflect current and emerging industry practices and assist actuaries in complying with the 2026 Valuation Manual requirements for non-variable annuity reserves.