Complimentary White Paper → Principles-Based Bonds for Statutory Insurers
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This guide provides a comprehensive implementation overview for the NAIC’s Principles-Based Bond Definition (PBBD) Project, a significant milestone that modernizes statutory accounting principles for bonds. Effective January 1, 2025, the new definitions require insurance companies to re-evaluate their bond portfolios to ensure compliance with the updated guidance.
Key Points
- The PBBD provides specific criteria for evaluating bond features and enhances financial statement transparency.
- Insurers must thoroughly analyze bond characteristics and may need to adjust reporting.
- Clear documentation and consistent application of the new principles are crucial.
- The NAIC offers resources for a smooth adoption, with a January 1, 2025 effective date.