|[January 21, 2013]
BestWeek: AM Best Expects Accounting Changes to Impact Companies With Defined-Benefit Pension or Post-Retirement Plans
OLDWICK, N.J. --(Business Wire)--
Two new Statements of Statutory Accounting Principles will change the
method by which companies calculate and record retirement obligations,
A.M. Best reports in the latest issue of BestWeek U.S./Canada.
The changes will most likely impact statutory financial statements for
property/casualty and life/health companies with defined-benefit pension
plans or other post-retirement benefit plans. Before SSAP 92 and SSAP
102 were adopted, under-funded pension and other post-retirement
employee benefit obligations may not have been recognized on insurance
companies' statutory balance sheets. The new standards also require that
benefits expected to be earned by unvested participants be included in
service cost. In addition, unrecognized actuarial losses/gains,
unrecognized prior transition obligations/assets and other unrealized
gains/losses now must be reflected in benefit plan costs.
Both BestWeek U.S./Canada and BestWeek Europe feature an
A.M. Best special report looking at how Africa's diverse insurance
markets offer opportunities for growth. Insurers are attempting to
make insurance more accessible through microinsurance and, to a lesser
extent in certain countries, through takaful products that comply with
Islamic Shariah law. The insurance market is relatively concentrated,
with premiums from South Africa, Morocco, Egypt, Nigeria, Algeria and
Kenya representing 89.2% o total non-life and life premium on the
continent in 2011. A.M. Best has examined three of Africa's largest
insurance markets and notes:
As part of an ongoing series on the Latin American insurance market, BestWeek
U.S./Canada takes a look at the insurance market in Colombia. The
country has improved its reputation and begun aligning its approach
with international financial standards. The influx of investment
capital has resulted in widespread development and plenty of growth
opportunities for the more than 40 companies that operate in
Colombia's insurance market.
BestWeek can be accessed on iPads and mobile devices at www.bestweek.com.
BestWeek is published by A.M. Best Co. for insurance
professionals. To subscribe, visit www.ambest.com/sales/BestWeek.
View the new weekly video program BestWeek Live at http://www.ambest.com/media/MA.asp vid=bwl1133.
In this episode, Senior Associate Editor Meg Green discusses how some
insurance executives at the recent Property/Casualty Insurance Joint
Industry Forum spoke out against Solvency II, while BestWeek
Europe Editor Dave Pilla looks at the slow progress surrounding the
regulatory framework; Washington Bureau Manager Jeff Jeffrey talks about
the future of the federal terrorism insurance backstop and whether it
may encompass cyber coverage; and Senior Business Analyst Carol
Demyanovich details how the A.M. Best stock indexes performed in 2012.
Founded in 1899, A.M. Best Co. is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
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