Measurement
Under LDTI, traditional products cash flow assumptions will be updated at least this often.
What is annually?
MetLife's new effective date for LDTI.
What is 2022?
In addition to US participating products, these less lengthy class of products are also excluded from the scope of LDTI's liability measurement changes.
What are short-duration products?
Not to be confused with MetLife's Bermuda captive, this three letter acronym describes certain guarantees that will be required to be measured at fair value under LDTI.
What is an MRB?
This new IASB-issued standard, effective January 1, 2022, replaces the current standard on insurance contracts (i.e., IFRS 4)
What is IFRS 17?
Under LDTI guidance, the famed insurance asset that is no longer subject to impairment testing.
What is DAC?
Under LDTI, this is where the financial impact of discount rate changes on reserves will be reported.
What is Other Comprehensive Income or OCI?
LDTI will impact the definition of this very important management reporting metric...and possibly your wallet.
What is adjusted earnings?
Under IFRS 17, a contract in which the aggregate cost required to fulfill the agreement is higher than the economic benefit to be obtained from it.
What is an onerous contract?
In July 2019, this FASB decision made the AIM Program team happy campers.
What is the one-year deferral of the effective date?
The interest rate required to be used to discount traditional liabilities under LDTI.
What is a single A?
For IFRS 17, this is the level of aggregation one level below the portfolio.
What is product grouping or grouping?
One example of a liability that is only in scope for the new disclosures under LDTI.
What are policyholder account balances? Or What are separate account liabilities?
Unlike this creature of the night, business units utilize this form to document how they are applying LDTI accounting policies to their products.
What is a BAT or Business Application Template?
Cash paid to a subsidiary's immediate parent, which may be impacted due to changes in profit release under IFRS 17.
What are dividends?
Under LDTI, this is the maximum % that net premium ratio can be for a particular cohort.
What is 100%?
Under LDTI, the "possessive" portion of the change in fair value for MRBs attributable to this will be reported in Other Comprehensive Income.
What is "own credit", "instrument-specific credit risk" or "non-peformance risk"?
Under IFRS 17, products that are classified as short-duration under US GAAP will generally fall into this measurement model.
What is PAA? or What is Premium Allocation Approach?
A three-letter acronym to describe the unearned profit liability under IFRS 17
What is CSM or Contractual Service Margin?
DAILY DOUBLE!!
What is the modified retrospective approach?
A "designated" basis for DAC amortization under LDTI.
What is a driver?
Nutella and jam cannot compete with this new PAB disclosure requirement?
What are "spreads" or "interest rate spreads"?
Removing your coat, scarf, and earmuffs can be easier than this step that needs to be completed prior to applying the provisions of IFRS 17.
What is unbundling?
January 1, 2020
What is the "transition date" for LDTI?
The last month the AIM program will be in Amber status for the remainder of the implementation
What is October 2019?