Texas Chapter IASA. NAIC Update Annual Statement. Texas IASA November 21, 2014 Connie Jasper Woodroof StoneRiver, NAIC Liaison

Transcription

1 Texas IASA November 21, 2014 Connie Jasper Woodroof StoneRiver, NAIC Liaison NAIC Update Proprietary 2014 StoneRiver, Inc. Agenda 2014 Annual Statement 2014 RBC Accounting Update 2014 Annual Statement Proprietary 2014 StoneRiver, Inc. StoneRiver, Inc. 1

2 General Interrogatories 25.2 Other Federal Home Loan Bank Changes Notes to Financials 5, 11 Code column in Investment Schedules Associated SSAP changes: Nos. 1, 15, 30, 52 RBC All formulas Investment Schedules Code Column Notes to Financials #5 Restricted Assets Revised from PY Capital Finance Investments (5I) From adoption of SSAP No. 105 Structured Notes Revisions to SSAP No. 26 and 43R Guidance posted on Blanks Working Group website CUSIP, Actual Cost, Par Val, BACV, Mtg referenced? Offsetting and Netting of Assets and Liabilities Moved from Note 21 to Note 5 StoneRiver, Inc. 2

3 Note to Financials #5 Restricted Assets Notes to Financials Note #12 Multiemployer Plans Revisions to SSAP Nos. 92 and 102 Note #21 Move Joint and Several Liabilities disclosure from Note 21 to Note 14 Note 14 renamed to Liabilities, Contingencies and Assessments Notes to Financials #22 Modification of PY Affordable Care Act (ACA) assessment information Now covered under new SSAP No. 106 (formerly under SSAP No. 35R) StoneRiver, Inc. 3

4 Notes to Financials #24 Risk sharing provisions of the Affordable Care Act (ACA) Currently INT 13-04, SSAP No. 35R Separate SSAP being developed ACA Risk Sharing Programs Disclosures Requires quarterly and annual disclosures of balance amounts Quarterly disclosures made retroactive to 1 st quarter 2014 Requires quarterly and annual roll-forward balances Beginning annual 2014 and thereafter Examples of roll-forward included as an Appendix Investment Schedules Schedules A, B, BA Add postal code electronic column Schedule A location of real estate Schedule B location of real estate securing mortgage loans Schedule BA location of properties for investments having the underlying characteristics of real estate and/or mortgage loans If multiple properties, list all zips from highest to lowest in property value Investment Schedules Schedules A, B, BA Property type electronic column Primary use of property OF Office RT Retail MU Apartment/Multifamily IN Industrial HC Medical/Health Care MX Mixed use LO Lodging OT - Other StoneRiver, Inc. 4

5 Investment Schedules Schedule A, B, BA State column now accepts 3-character country code Schedules B, BA Maturity date electronic column Mortgage loans and those investments having the underlying characteristics of mortgage loans State date mortgage loan matures Supplemental Compensation Exhibit New format for Part 2 Officers and Employees Listing still for top 10 employees/officers, but now must include PEO, PFO; next 3 most highly compensated executive employees if >$100,000; next 5 most highly compensated employees if >$100,000. Supplemental Compensation Exhibit New format for Part 3 Directors Applies to all Directors StoneRiver, Inc. 5

6 Supplemental Compensation Exhibit New Part 4 Narrative Description of Material Factors Provide a narrative description of any material factors necessary to gain an understanding of the information disclosed in the tables. LAH and Fraternal Actuarial Opinion Actuary must be appointed directly by, or by the authority of, Board of Directors; and report to Board or Audit Committee Actuary must meet certain qualifications Opinion must follow guidelines and standards Separate Actuarial Opinion for each company filing an annual statement Exhibit 5 Modified definition of contingent deferred annuities (CDA) in instructions LAH and Fraternal Asset Valuation Reserve (AVR) New format for calculating mortgage loan and underlying characteristics of mortgage loan portion of AVR Utilized RBC mortgage loan division and treatment Supplemental Exhibits & Schedules Interrogatories Will Regulatory Asset Adequacy Issues Summary be filed with state by March 15? Will Actuarial Memorandum required by Actuarial Guidelines be filed with state by April 30? StoneRiver, Inc. 6

7 LAH & Fraternal Statement New reinsurance supplement for XXX/AXXX products LAH, Fraternal, Health General Interrogatories Part 2 Question to capture direct written premium, incurred claims, and number of covered lives for CY ordinary life By product type New question regarding captive affiliates reported on Schedule S Part 3 as authorized reinsurance LAH, Fraternal and Health Schedule S Part 3 format changes Insert available code to indicate type of business 6 Type of Reinsurance Ceded 7 Type of Business Ceded Does NOT completely align With Analysis of Ops by Line Of Business For 2014, must provide for captive reinsurance, A&H products; may report Other for other non-captive reins StoneRiver, Inc. 7

8 Health Formal adoption of Exhibit 3A instructions issued in 2013 as guidance Property/Casualty Actuarial Opinion and Actuarial Opinion Summary Supplement (also Title companies) Includes revised reporting for pooled companies and other technical changes Add new line (2.4) to state page, IEE - Parts II and III for Private Crop Combined Statement Add statement contact person s address Will be shown on printed copy Will be data captured Risk-Based Capital Proprietary 2014 StoneRiver, Inc. StoneRiver, Inc. 8

9 All RBC Formulas No RBC permitted practices allowed. No changing of formulas, factors, or adjusting of action levels. All RBC Formulas ACA Fee RBC Ratio Sensitivity Test Deducts ACA fees from TAC Computes RBC ratio of TAC less ACA fees to Authorized Control Level RBC All RBC Formulas Operational Risk Format different for each of the formulas FYI only for 2014 No factors will be used for 2014 Currently would not be subject to covariance calculation Current total RBC after Covariance + Operational Risk = Total RBC after Covariance StoneRiver, Inc. 9

10 Health RBC New page XR012-A FYI only For 2014 Health RBC Revisions to Credit Risk ACA recoverables shown separately; same factor ACA Risk Adjustment & Risk Corridor Sensitivity Test 25% factor HRBC and RRBC Additional lines added to Asset Concentration Receivables for Securities Factor changed from.050 to.024 StoneRiver, Inc. 10

11 Property RBC Underwriting risk factors updated Annual occurrence Adopted underwriting risk premium factors for Line 4 (ex-cat factors), PR018A Still FYI page Instructions for PR026 Catastrophe Risk Charge Expands upon instructions in footnotes Attestation for catastrophe modeling Modeling used for RBC catastrophe same as used internally If exceptions, must disclose and explain why Property RBC Schedule P catastrophe amts Instructions for clarity added as footnotes 24A & 28A - Only include losses from events included on the US catastrophe list posted by the Cat Risk Subgroup available on website or numbered and labeled US by PCS as hurricane, tropical storm, or earthquake. 24B & 28B - Only include losses from events included on the non-us catastrophe list posted by the Cat Risk Subgroup available on website or numbered and labeled Non-US by PCS as hurricane, tropical storm, or earthquake. Property RBC New FYI PR003A that uses RBC After Covariance including Catastrophic Risk to calculate affiliated risk Also new FYI PR004A to summarize affiliated risk with catastrophic numbers included StoneRiver, Inc. 11

12 Life RBC & Fraternal RBC Interest Rate Risk and Market Risk (Alternative) Only to collect information, at this time Companies to include description of proprietary generator used, calibration criteria and number of scenarios AAA scenario required for companies with reserves of $1b or more and admitted assets > $10b; optional for other companies Life RBC & Fraternal RBC AVR limited for inclusion in Total Adjusted Capital Only AVR not used in asset adequacy testing Not readily apparent reporting format; noted in instructions and as footnote at bottom of page Other Accounting Updates Proprietary 2014 StoneRiver, Inc. StoneRiver, Inc. 12

13 Adopted Accounting Changes Preamble, Appendix D, Issue Paper 99 AICPA SOPs no longer reviewed for statutory accounting; not considered authoritative accounting guidance Add reference to original SSAP and current authoritative guidance on face of each Issue Paper SSAPs No. 3 Changes/Corrections & No. 68 Business Combinations Merger footnote clarification SSAP No. 16R EDP Equip & Software Disclosure of Capitalization Adopted Accounting Changes SSAP No. 86 Derivatives Adopts ASU with modifications Reconciliation of DB to balance sheet SSAP No. 97 Investments in Subs.. Clarification to decision tree SSAP No. 104R Share-Based Payments Equity based payments to non-employees Adopts GGAP fair value with modifications Adopted in 2013, but effective December 31, 2014 Exposed Items Investment Classification Review Discussion topics and prioritization Issue Paper 149 Revisions to SSAP No. 40 Real Estate and SSAP No. 48 Joint Ventures, Partnerships & Limited Liability Companies Wholly-Owned Single Real Estate Property in an LLC StoneRiver, Inc. 13

14 Exposed at August Meeting SSAP No. 1 Disclosure of Accounting Policies, Risk and Uncertainties, and Other Disclosures and SSAP No. 4 Asset and Nonadmitted Assets Restricted assets clarification Restricted assets does not mean nonadmitted assets SSAP No. 41 Surplus Notes Comments on revising thresholds SSAP No. 54 Individual and Group Accident & Health Contracts Medicare Advantage and Medicare Part D Risk Adjustment Premium Receivables and Payables Exposed at August Meeting SSAP No. 55 Unpaid Claims, Losses and LAE Extra contractual obligations & bad faith lawsuits SSAP No. 56 Separate Accounts Disclosure clarifications SSAP No. 57 Title Insurance New premium disclosure categories SSAP No. 62R - Reinsurance Asbestos & Pollution Reinsurance Reporting Exception SSAP No. 69 Statement of Cash Flows Treatment of non-cash items in the Cash-Flow Statements Exposed at August Meeting SSAP No. 101 Income Taxes Clarification of income tax footnote SSAP No. 104R Share-Based Payments Adopt ASU Appendix A Updates to allow the 2012 Group Long-Term Disability Table Appendix C Health Actuarial Guideline XLVII StoneRiver, Inc. 14

15 Questions Connie Jasper Woodroof NAIC Liaison ext StoneRiver, Inc. 15