Ohio IASA. Annual Statement Update Statement Reporting Changes. Ohio IASA November 23, 2015 Connie Jasper Woodroof StoneRiver, NAIC Liaison

Transcription

1 Annual Statement Update Ohio IASA November 23, 2015 Connie Jasper Woodroof StoneRiver, NAIC Liaison Proprietary 2015 StoneRiver, Inc. Agenda 2015 Statement 2015 RBC Investment Projects 2015 Statement Reporting Changes Proprietary 2015 StoneRiver, Inc. StoneRiver, Inc. 1

2 2014 Items No Longer Deferred Schedule A, B, BA Electronic columns for Postal Code, Property Type Reporting was deferred in 2014 for Property/Casualty and Health companies Must report for 2015 All Statements Removal of document identifier codes listing (bar codes) from statement instructions Assets page New description for Line 15.3 Accrued retrospective premiums ($ ) and contracts subject to redetermination ($ ) From revisions to SSAP No. 54 Cash flow Do not include non-cash items Additional disclosure on page for reporting non-cash operating items included From revisions to SSAP No. 69 Notes to Financials Note 1D Summary of Significant Accounting Policies and Going Concern On going disclosures and Note title change Annual and interim statement requirement Implementation date for statements prepared for reporting periods on or after 12/31/2016 However early adoption encouraged, so included in 2015 instructions Revision to SSAP No. 1 Disclosure of Accounting Policies.. Also revisions to SSAPs No. 48, 68, 97 Affiliate holdings whose financials indicate substantial doubt as to going concern ability must be nonadmitted StoneRiver, Inc. 2

3 Notes to Financials Note 5 Investments New part 5A(8) for disclosure of mortgage loans derecognized as a result of foreclosure Revisions to SSAP No. 37 Additional 5G disclosure for low-income housing tax credits Changes to SSAP No. 93 Notes to Financials Note 5J Offsetting and Netting of Assets & Liabilities Notes to Financials Note 11 Debt Crosschecks added to 11B and instructions for 11B(2)b clarifying the inclusion of FHLB Class A and B membership stock not eligible for redemption Note 12 Retirement Changes to defined benefit plan disclosure From revisions to SSAP No. 11 StoneRiver, Inc. 3

4 Notes to Financials Note 22 Events Subsequent Changes to the ACA assessment disclosure Adds ties to 5-Yr Historical Data Investment Schedules Schedule A Part 1 New code to use for reporting of certain real estate owned by a LLC, meeting SSAP No. 40R requirements! in code column Schedule D Part 1 New electronic columns for name of issuer, issue, ISIN identification, capital structure code New instructions for CUSIP and Description columns Investment Schedules Schedule DB Part D Section 1 StoneRiver, Inc. 4

5 Supplemental Health Care Exhibit Remove aggregate 2% column; replace with column for Medicare Part C and D reporting Clarify reporting for retrospectively rated contracts (contracts subject to redetermination) Additional section for reporting of ACA 3R s receivables Cautionary Statement to be added to Blanks website Numbers reported not exact numbers used for rebate purposes and or MLR filing Property/Casualty Statement Schedule P Changes in pooling agreement percentages If impacts prior accident years, historical data in Schedule P Parts 1 thru 6 to be restated Use new pooling percentages If only impacts current/future years, no restatement necessary Property/Casualty Statement Definitions of LOBs to appear only in Appendix Cybersecurity and Identity Theft Insurance Coverage Supplement Due April 1 Possible reporting problems StoneRiver, Inc. 5

6 LAH Statement Notes 32 and 34 Modifications to correct inconsistencies in the use of market value and fair value within the instructions Now aligns with terminology used in SSAP No. 56 Changes to XXX/AXXX supplement Numerous instructional changes Previous Part 2 divided into Part 2A (grandfathered or special exemption) and Part 2B (non-grandfathered) Health Statement U&I Part 2B, Line 10 Instructions revised to provide methodology of tying Part 2B to Exhibit 3, Health Care Receivables Health Statement Line 3, CY amount should equal Gen Int - Part 2, Line 11.4 StoneRiver, Inc. 6

7 2015 Risk-Based Capital Proprietary 2015 StoneRiver, Inc. All Formulas No RBC specific permitted practices allowed No changing of statement classifications, no factor changes, no formula changes No restating in RBC company discussion Signatures for RBC Jurat signatures State designates who can sign TAC adjustment for subs subject to AVR Federal ACA Risk Adjustment and Risk Corridor Sensitivity Test Updated Receivable for Securities Factor LRBC, 1.4; PRBC, 2.7; HRBC, 2.6 All Formulas All information pages still in formula Some have new factors for testing New information only pages Underwriting risk for health coverages Added to LRBC and PRBC; was already in HRBC StoneRiver, Inc. 7

8 PRBC Checklist Asset Concentration Updated premium and reserve factors Updated ex-cat premium factors Change in affiliated investments calculation New exemption criteria for catastrophe risk Two new columns for catastrophe risk reporting Footnotes added to catastrophe risk AEP and OEP curve sorting Changes in catastrophe risk modeling attestation New information only page Credit Risk for Reinsurers LRBC Checklist New treatment for derivate collateral and centrally cleared derivatives Interest Rate Risk and Market Risk can continue to decrease factors by 1/3 if qualified actuarial opinion due solely to Actuarial Guideline XLVIII New question for determination Two new additions for captive reinsurance One could increase amount of Total Adjusted Capital needed One could increase actual RBC requirement Previous information only page for C3 Phase 1 modeling still there but do not need to complete HRBC Updated terminology from MCO or managed care organization to health entity Factor for investment subs now.30 Affiliated instructional change indicating pro-rata amounts based on percentage of ownership to be used Removed pandemic and biological risk questions Other column of XR012, Underwriting Risk- Experience Fluctuation Risk to include LAH and P&C business, where appropriate, as well as other health Underwriting Fluctuation information only page still there, but with additional lines StoneRiver, Inc. 8

9 Investment Projects Heads Up Proprietary 2015 StoneRiver, Inc. Investments, Investments, Investments With emphasis on risk exposure, investments being scrutinized again Several groups leading the charge Investments RBC Working Group Statutory Accounting Principles Working Group Investment Reporting Subgroup Valuation of Securities Task Force What Possibilities Are We Looking At? Recalibration of RBC bond factors may result in additional NAIC designations to be utilized in statement reporting Will this result in changes to which bonds are carried at amortized cost and which are lower of amortized cost or fair value? All research was done on only corporate bonds, but now recommending apply to all bonds All research has been done on LAH companies, but other RBC formulas will need to consider Changes in RBC treatment for real estate exposed for comment Overall lower factor, but process more complicated StoneRiver, Inc. 9

10 SAPWG Developed investment matrix as basis to outline project posted on website All accounting for invested assets covered in every SSAP being reviewed Have several proposals out for comment at the present time May result in new investment schedules or expansion of current schedules November National Meeting discussions Investment Reporting Subgroup To review any Blanks proposal for investment schedules Had been reviewing investment schedules for reporting efficiency Put on hold until SAPWG completes their review process On current agenda Use of bond characteristics field Review description field vs. new issue field on Schedule D Part 1 Foreign securities code column StoneRiver, Inc. 10

11 NAIC November National Meeting Update Proprietary 2015 StoneRiver, Inc. Questions? Please contact: Connie Jasper Woodroof x5761 StoneRiver, Inc. 11