IFRS 17 - INSURANCE CONTRACT ACCOUNTING

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1 IFRS 17 - INSURANCE CONTRACT ACCOUNTING AN IN-DEPTH EXAMINATION FOR LIFE, PROPERTY AND CASUALTY INSURERS 9:00 a.m. 9:05 a.m. Opening Remarks from the Chair December 11-13, 2018 Toronto Conference Agenda Program December 11 Janice Deganis, Partner, Ernst & Young LLP (Proposed) 9:05 a.m. 10:00 a.m. IFRS 17 Transition Resource Group Issues Update Neil Harrison, Partner, Deloitte LLP (Invited) Review of important issues discussed to date Upcoming meetings and agenda items Looking at specific issues and TRG consideration those issues including 10:00 a.m. 11:00 a.m. Financial Information and Data Actions Being Taken Around Data, Systems and Technology James Zante, Ernst & Young LLP Keep the end-state in mind -striking a balance between tactical compliance with IFRS 17 -In Practice: Legacy systems issues weighing the cost/benefits -implications for all of your non-insurance accounting and reporting? Emphasize Data! -Setting a dataa governance commitment and creating a dedicated data workstream -In Practice: establishing a data governance model where none exists -leveraging the model into a data workstsream -defining the most important data controls and how to avoid overdoing it? Partner with your key vendors -understand their ability to complete the full solution and bet on those you trust -In Practice: avoiding costly RFP/RFI process by focussing on real capabilities and use cases -how vendors line up in terms of software vs. slide-ware -how can you leverage your relationships to get commitment? Elevate IT -appoint an IFRS 17 IT Owner on the leadership team role, responsibility, authority -In Practice: -what does the IFRS 17 IT Owner profile include -responsibilities in the overall program? -what team members, owners, skills, and third-party support should be defined and staffed immediately? Don t underestimate change management incorporating this into a plan that addresses your target system architecture - In Practice: -what does the plan look like and how does it tie into the overall plan -using the program governance models and helping to design/identify effective controls?

2 11:00 a.m. 11:15 a.m. Morning Networking Break 11:15 a.m. 12:15 p.m. Meeting the Communication/Disclosure Challenge Financial Statements, Internal and External Reporting Dana Chaput, Partner, KPMG LLP Anthony Buonaiuto, Manager, KPMG LLP Understanding the disclosure requirements - reported amounts for long and short duration contracts Internal and external reporting considering the target audience Change management how to educate and involve various stakeholder groups Early observations from global and local first-movers 12:15 p.m. 1:15 p.m. Luncheon 1:15 p.m. 4:45 p.m. Streamed Life and Property/Casualty Session Part A (There will be a 15 minute refreshment break during this session) OR Life Insurance - Part A -1 CSM A Deeper Dive Into Practical Issues Using Examples Bobby Thompson, Senior Manager, Ernst & Young LLP An interactive workshop whereby participants will work through a live example to determine and record journal entries required for compliance with IFRS 17. Topics will include: - Journal entries to record cash impacting transactions - Journal entries to roll forward BEL, RA and CSM - Journal entries for a change in discount rates - Journal entries for differences between expected and actual results - Journal entries for an assumption change - Journal entries for reinsurance Participants will use journal entries to derive a set of financial statements to help enhance understanding of the mechanics of IFRS 17 allowing for practical insights for your organizations. Property and Casualty - Part A -2 P&C Implementation Hot Topics and Acquired Books Dana Chaput, Partner, KPMG LLP Amit Chalam, Senior Manager, KPMG LLP Issues and solutions for implementation hot topics: -balance sheet presentation -insurance acquisition cash flows differences from DAC -reinstatement premiums -materiality and the application of judgment GMM for P&C products claims acquired in the settlement period -initiation -Year 1 contracts behave as expected -Year 2 experience adjustment -Year 3 change in expectation relating to cash flows 4:45 p.m. End of Day 1

3 9:00 a.m. 9:05 a.m. Opening Remarks from the Chair Janice Deganis, Partner, Ernst & Young LLP Program December 12 9:05 a.m. 12:00 p.m. Streamed Life and Property/Casualty Session Part B (There will be a 15 minute refreshment break during this session) OR Life Insurance - Part B -1 Variable Fee Approach, Transition Approaches and LICAT Interaction Variable Fee Approach Issues and Worked Example Simon Couture, Actuarial Senior Manager, PricewaterhouseCoopers LLP Applying the VFA model Key issues in practice Illustrative example with journal entries Transition Approaches Owen Thomas, Partner, PricewaterhouseCoopers LLP Illustrative examples of transition approaches and adjustments Full retrospective approach Modified retrospective approach Fair value approach Interaction with LICAT Mike Palmer, Actuarial Director, PricewaterhouseCoopers LLP Interaction of IFRS 17 with LICAT Draft LICAT guidance for 2021 Considerations for your transition project Property and Casualty - Part B -2 Calculating Claim Liabilities Including Discounting and Offsetting Raj Matharu, Senior Manager, Deloitte LLP Lingling Liu, Manager, Deloitte LLP Measuring claim liabilities under the PAA Understanding when discounting is not required Top-down vs. bottom-up why results may differ Discounting for longer tail contracts

4 Applying the General Model rules for discounting incurred claim liabilities for property/casualty contracts Risk adjustments for non-financial risks Offsetting risks arising from product diversification Understanding and managing the scope of new information, and related data, required Reinsurance with risk attaching 10:45 a.m. 11:00 a.m. Morning Networking Break 12:00 p.m. 1:00 p.m. Luncheon 1:00 p.m. 1:40 p.m. Reinsurance Treatment Under IFRS 17 Rebecca Rycroft, Senior Vice President and Chief Financial Officer, Munich Reinsurance Company Canada Branch (Life) Outlining the position of -cedant (insurer) -reinsurer (issuer) Measurement of reinsurance contracts Differences from measurement of insurance contracts Determining CSM of the reinsurance and release of CSM Use of the PAA eligibility Other issues of significance to reinsurers -level of aggregation for reinsurance inwards -required modification to the general model -mismatches in timing of gains and losses -incorporating expected credit losses -use of different model than underlying contracts Working through examples to illustrate the process 1:40 p.m. 2:45 p.m. How IFRS 9 interacts with IFRS 17 Kathryn Gardiner, Partner, Ernst & Young LLP Bruce Langstroth, Actuarial Associate Partner, Ernst & Young LLP Bobby Thompson, Senior Manager, Ernst & Young LLP Overview of IFRS 17 and differences from CALM Introduce time value of money under IFRS 17 Bottom up versus top down (i.e. residual credit risk left in top down, discuss duration matching issues, etc.) Key differences in time value of money from CALM What is the risk free rate + illiquidity premium (discuss upcoming IBOR changes, discuss swap curve vs treasury curve, how will illiquidity be modelled) Discuss new income statement and how assets and liabilities emerge into income through subsequent measurement Why is IFRS 17 accretion and IFRS 9 classification and measurement so key Why portfolios for liabilities will determine asset portfolio mix on a product by product basis Practical issues including how OCI treatment of liability accretion can cause asset issues Practical issues on EIR for IFRS 9 versus curve accretion for IFRS 17 and mismatch that can cause Do assets backing CSM need to be structured differently from those backing FCF and RA? Segregated fund hedging derivative needs changes, IFRS 17 risk mitigation and the variable fee approach

5 2:45 p.m. 3:00 p.m. Afternoon Networking Break 3:00 p.m. 3:45 p.m. Income Tax considerations for IFRS 17 Jason Swales, Tax Partner, PricewaterhouseCoopers LLP Overview of principal tax areas that may be impacted by IFRS 17, for Life and P&C companies Anticipated process of dealing with tax authorities to address required rule changes, including role of industry working groups Where do we go from here? What Life and P&C companies should be thinking about... 3:45 p.m. 4:45 p.m. IFRS 17 Systems Solutions and Vendors Trends, Capabilities and Strategies Richard Brayley, Principal Braylson Group Eduardo D`Alma, Partner Q-PERIOR Inc. What are we seeing in the market (three case studies) Characteristics of an integrated IFRS 17 finance and risk solution Review leading vendors and their coverage of IFRS 17 requirements Target operating model and deployment strategies Implementation approaches and timelines Organizational readiness and how to enable your team

6 SAVE UP TO $500 REGISTER BY October 17, 2018! Priority Registration IFRS 17 Insurance Contract Accounting December 11-12, 2018 Toronto Registration Fees Registration Before October 10, 2018 Before October 17, 2018 After October 17, 2018 IFRS 17 Conference $1, HST $1, HST $2, HST Pre-registration fees include all documentation, continental breakfasts, lunches and refreshments. Parking and accommodation are not included. Please make all cheques payable to. Mr./Ms./Mrs. Title Mr./Ms./Mrs. Title Mr./Ms./Mrs. Title Company Address City Province Postal Code Telephone ( ) Extension Fax ( ) Register Now! Fax your completed registration form to (416) ; or Mail your completed registration form to, Suite 1100, 151 Yonge Street, Toronto, Ontario, M5C 2W7; your registration to info@acumeninformation.com; or Call (416) for registration assistance and additional information. Payment Options: Please invoice me Payment enclosed Charge to my Visa Mastercard Card number: Expiry date: Security No. Signature: HST No. R Location and Timing The conference will be held at a convenient location in downtown Toronto. Venue information and special conference pricing details will be provided upon confirmation of the venue. Delegates can register at the Acumen service desk beginning at 8:00 a.m. on the morning of the first day of the conference. Registration fees do not include hotel accommodation. The Acumen Guarantee If you find that this event does not meet the high quality standards you expect from Acumen, we will issue you a letter of credit equal to the value of your fees. The individual delegate or any member of his or her company may use this letter of credit for two years from date of issue. Write us a letter describing why you were dissatisfied and direct it to the General Manager. Cancellations Substitutions may be made at any time. If you are unable to attend, please make cancellations in writing and fax to (416) prior to 5 p.m. on November 27, A credit voucher will be issued to you for the full amount, redeemable against any other Acumen conference. You may request a refund of fees paid less an administration fee of $ Registrants who cancel after the above date will not be eligible to receive any credits or refunds and are liable for the entire registration fees.

IFRS 17 - INSURANCE CONTRACT ACCOUNTING

IFRS 17 - INSURANCE CONTRACT ACCOUNTING AN IN-DEPTH EXAMINATION FOR LIFE, PROPERTY AND CASUALTY INSURERS 9:00 a.m. 9:05 a.m. Opening Remarks from the Chair Janice Deganis, Partner, Ernst & Young LLP June