Numerous committees, task forces and working groups of the NAIC have been busy at work over the past three years compiling data, reading legal documents, studying actuarial models and consulting with outside advisors, in each case keenly focused on the life insurance industry’s use of captive reinsurers for so-called AXXX and XXX reserve financing transactions. At the NAIC’s Fall National Meeting, the organization’s exhaustive efforts finally began to pay dividends for state insurance regulators as on November 17, 2014, the Principle-Based Reserving Implementation (EX) Task Force adopted a draft of Actuarial Guideline 48 (dated November 14, 2014, “AG 48”), which defines the rules to be followed for new life reserve financing transactions after a January 1, 2015 effective date (subject to detailed grandfathering rules). While the version of AG 48 that was so adopted is clearly still a work in progress, it should give regulators, industry participants and financing parties more clarity than they have seen at any time since 2011.

Please join Mayer Brown partners David Alberts, Keith Andruschak and Lawrence Hamilton, as they discuss the implementation of the recommended framework set forth in AG 48 as guided by the Rector Report.

The call will cover the following areas:

  • Overview and History
  • The original Rector Report and Rector 2.0 
  • Primary versus Other Security
  • AG 48, Grandfathering and Evolving Regulatory Attitudes
  • Potential Impact on Existing Markets and Deal Structures
  • PBR Inevitability and Reserve Financing Sunset?
  • The Next Targets for Regulators