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SSAP 101 Adopted

Statutory Accounting Principles Working Group Adopts SSAP 101 Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10.  On August 31, 2011 the Statutory Accounting Principles Working Group adopted SSAP 101. As adopted this replacement of SSAP 10R...

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Organizing Reinsurance in Receiverships and Troubled Companies

Protecting Your Largest Asset by Getting a Handle on It: A Brief Checklist It’s a dark and stormy night!! (Really) The Department of Insurance is in the midst of an examination of The ABC Troubled Company (“Troubled Company”). Among other...

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Redefining the World of Deferred Acquisition Costs (DAC)

No doubt you have read about and gone through the exercise of familiarizing yourself with the new fair value definitions from the Financial Accounting Standards Board (FASB). Well, the FASB continues to move forward by redefining Deferred Acquisition Costs (DAC)...

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Accounting for Insurance Contracts — A Joint Movement to IFRS

As the insurance industry moves ever closer to an accepted set of International Financial Reporting Standards (IFRS) - many uncertainties remain related to the nature, timing, and extent of accounting considerations for insurance contracts. Insurance companies will likely be facing...

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NAIC Proposes Uncertain Tax Positions

Have you recently completed your annual statement and thought to yourself, when will these footnote disclosures end?At the National Association of Insurance Commissioners (NAIC) 2011 Spring Meeting held in Austin, TX, the NAIC proposed more potential disclosures in the area...

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Fair Value Disclosure Improvements
(SSAP 100 - Fair Value Measurements - Modified)

“Fair Value” has become as common as “Google,” “Twitter,” or even “Facebook.” No matter if you’re watching your favorite business TV show or reading various business periodicals, you are sure to run across this topic. Fair value accounting and disclosures...

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Fall NAIC Updates: Potential Changes to SSAP 100 and SVO Task Force Status

Potential Changes to SSAP 100 – Fair Value MeasurementsOn Monday, October 18, 2010, the Statutory Accounting Principles Working Group (SAPWG) discussed potential amendments to SSAP 100 – Fair Value Measurements.Recurring vs. Non-Recurring SchedulesThe focus of the amendment surrounded the elimination...

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Insurance Broker Acquisitions: Contingent Considerations & Commissions

If you’re considering or already in the process of acquiring an insurance broker, you’ll want to read the latest article by Brian Gore, Rebecca Nelson, and Jagesh Shah of Duff & Phelps, a national financial advisory and investment banking firm.They...

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Fair Value Measurements: SSAP 100 versus ASC 820 (fka “FAS 157”)

[Updated: Oct.27, 2010 to reflect the NAIC's proposed disclosure changes]Fair value accounting has been a part of US Generally Accepted Accounting Principles (GAAP) since the early 1990s. In its relatively brief history, fair value accounting, or “mark-to-market” accounting, has racked up...

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Senator Dodd's Financial Reform Bill Includes Provisions for Regulation of Reinsurance and Surplus Lines

The following article summarizes the current activity surrounding possible regulation of Reinsurance and Surplus Lines Insurance as contained in Senator Dodd’s bill. In an environment where federal regulation to avoid future bail outs is the order of the day, it’s...

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Preparing Your Organization for Risk, Threats and Opportunities: The Importance of Enterprise-Wide Risk Management (ERM) Education

This article points out how ERM can address both strategic and operational issues. While ERM is often thought of as a different way to look at risk management, the author elaborates on how ERM enhances overall decision making, improves acceptance...

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Benefits of Membership in the Federal Home Loan Bank System

We often read articles that are interesting, but have little practical application related to the problems our clients face. This article however, has both. For insurance companies that are experiencing cash flow issues, the following article may provide valuable assistance....

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Risk-Focused Exams for Reinsurance: What's Going On?

Beginning in 2010, state insurance examiners will be conducting “Risk-Focused Examinations” per the new Financial Condition Examiners Handbook. This is a revised approach to the exam as examiners will be concentrating on reviewing a company’s procedures and internal controls over...

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SSAP 43R-Revised Loan-Backed and Structured Securities

On September 14, 2009, the Statutory Accounting Principles Working Group adopted SSAP 43R, which provides guidance on recording other-than temporary impairments (OTTIs) on loan-backed and structured securities. The new pronouncementwill supersede SSAP 98, “Treatment of Cash Flows When Quantifying Changes...

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Insurance SAS 70: A Move Toward Action in Governance

In this era of heightened compliance and governance, an insurance organization’s ongoing assessment of its internal control structure and effectiveness is a critical business initiative. Many leaders within the insurance industry have concluded that setting the proper tone at the...

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FDIC Policy Changes Offer Insurers Added Protection

Katherine Duckworth, Vice PresidentCitibank, N.A. Commercial Business Groupkathy.duckworth@citi.com, 312-­­­627-5024 With today’s economic conditions, everyone is worried about the safety and soundness of their financial assets. This concern has made commercial and consumer banking customers nationwide increasingly aware of the significant...

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Corporate Bonds: Can Default History Predict the Future?

Elizabeth Henderson, CFA Director of Corporate Credit AAM Insurance Investment Management ehenderson@aamcompany.com, 312-263-2900 The rating agencies are predicting that defaults for speculative-grade bonds will peak somewhere between 14% and 16% in 2009. Many analysts and pundits are quick to point...

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Maximizing Tax Benefits of P&C Insurers’ Capital Losses

Douglas J. Youngren, JD, CPA Tax Partner dyoungren@BlackmanKallick.com, 312-980-2944In a year fraught with so many losses, is there anything in the current tax code that allows realized capital losses to offset underwriting income? Can those losses be carried back to offset...

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ACH: The New Wave of Bank Fraud

Jeffery A. Dertz, CPAPartner, Insurance Practice jdertz@BlackmanKallick.com, 312-980-3224This Blackman Kallick article was published some time ago, but it has taken on new relevance in light of the changes in the U.S. economy and the corresponding increase in online fraud. The Automated...

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Winning the Pricing War Against Industry Giants: Offensive Strategies for Regional Insurers

Chris Hurst Towers Perrin chris.hurst@towersperrin.com, 314-719-5846 Klayton Southwood Towers Perrin klayton.southwood@towersperrin.com, 309-828-8351  Gone are the days of pricing personal auto insurance using only "traditional" rating variables such as driver age, gender, marital status and vehicle use. More than a decade...

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What Is the Value of Financial Planning to an Insurance Enterprise?

In some respects, financial planning for an insurance company is like running a manufacturing assembly line. As long as people work ahead of themselves, things tend to go smoothly. Assembly line workers run into trouble when they try to manage...

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FAS 157 Changes Fair Value Definition, Measurement and Disclosure

Jeffery A. Dertz, CPAPartner, Insurance Practicejdertz@BlackmanKallick.com, 312-980-3224In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157). This new standard is effective for fiscal years beginning after Nov. 15,...

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This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.