The Statutory Accounting Principles Working Group (“SAPWG”) met virtually and in person at the NAIC Summer National Meeting held on August 12, 2026. This post is intended to provide an informative snapshot of what was accomplished during the meeting, as well as help accelerate your determination of the impact the adoptions and modifications will have on your financial statements.
Adopted Items
The SAPWG reviewed and adopted the following items that were previously exposed for comment. The items were adopted with minor revisions recommended by interested parties or regulators during the exposure period and discussed during the meeting. The adopted items apply to all lines of business (Life/Fraternal, Property, Health and Title) and all revisions are effective immediately, unless otherwise noted.
- Ref #2026-05: Securities Lending Restricted Asset Reporting – This item adopts revisions to SSAP No. 1 – Accounting Policies, Risks & Uncertainties and Other Disclosures to clarify that the securities lending restricted asset reporting category should reflect the security lent, as reported in the insurer’s investment schedules, rather than the collateral received. The Working Group will sponsor a blanks proposal to update the Note 5.L instructions and refer the matter to the Capital Adequacy (E) Task Force to align the RBC requirement with the lent assets remaining on the reporting entity’s books.
- Ref #2025-22: IMR Impact to Reinsurance Collateral – This item adopts revisions to SSAP No. 61 – Life, Deposit-Type and Accident and Health Reinsurance to clarify that derecognized net positive IMR should increase reinsurer collateral requirements, while net negative IMR should not reduce those requirements (asymmetrical method). The Reinsurance (E) Task Force agreed that this asymmetrical approach is appropriate at this time. (Life/Fraternal)
- Ref #2026-07: Referral on AVR affiliated common stock – This item includes no SSAP revisions. The adoption supports a proposal to the NAIC Blanks Working Group (BWG) to update the 2027 Life, Accident & Health/Fraternal Annual Statement blank and instructions for the Asset Valuation Reserve (AVR), clarifying reporting for “Subsidiary, controlled or affiliated (SCA)-Certain Other” and “SCA-All Other”. The adoption notice was also referred to the Life RBC (E) Working Group. (Life/Fraternal)
- INT 23-01: Net Negative (Disallowed) Interest Maintenance Reserve – The adopted revisions extend the effective date to December 31, 2027 with nullification on January 1, 2028. (Life/Fraternal)
For additional information on the items adopted by the NAIC SAPWG throughout 2026, please click here.
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