2022 Life Meeting - Session 6C: It's Time to Be Explicit': LDTI and Implicit DPL 8.25.22 Recording

It is time to'go live with ASU 2018-12, otherwise known as long-duration targeted improvements (LDTI). For companies that have single premium limited payment contracts, additional work will be necessary under LDTI if the contracts are currently utilizing a break-even discount rate to defer the excess of the gross premium over the net premium, i.e. the deferred profit liability. This is mainly driven by requirements under LDTI to update for actual experience and review assumptions at least on an annual basis. This session is designed to cover LDTI implications specific to carriers of single premium limited payment contracts, including changes to how deferred profit liabilities are calculated going forward under LDTI and their impact to financial statements.
By attending the session, you will:
- Identify the LDTI implementation issues impacting their immediate annuity business.
- Determine how balances will be established at transition.
- Describe the explicit DPL calculations required going forward under LDTI, and their impact to financial statements.