Principle-Based Reserves and Captives – The Controversy Continues: The Latest Developments in Principle-Based Reserving and Bridging the Gap in State Regulation of Insurance Company-Owned Captives

February 26, 2015 12:25pm

Cynthia J. Borrelli

Bressler Amery & Ross P.C.

Michael P. McTigue
Assistant General Counsel

Bryan R. Newcombe
Vice President, Secretary and General Counsel
Legal & General America, Inc. Banner Life Insurance Company William Penn Life Insurance Company of New York

  • Increased regulatory focus on the use of captive companies in life insurance and captive-based financing transactions
  • Examining the latest strides taken towards a permanent fix for the regulation of captives
  • The latest compliant structures and arrangements and determining what is and isn’t “shadow insurance” / “shadow banking” – is it the captive or the collateral?
  • The controversy over individual state adoption of the NAIC’s Principle-Based Reserving methodology; and taking a look at rival state systems for calculating reserves for certain types of life business
  • Analyzing the recommendations made by the Rector Report on reforming reserve financing transactions – what has been the industry response? What are the potential implications?
  • Recent activity taken by NAIC Task Forces, and what is on the horizon?