Principles-Based Bond Definition

The intent of the NAIC’s ongoing Principles-Based Bond Definition project has been to clarify definitions, accounting methods, and reporting.  The project has included revisions to Statement of Statutory Accounting Principles (SSAP) No. 26R — Bonds, SSAP No. 43R — Loan-Backed and Structured Securities, and other related SSAPs.

The NAIC Blanks Working Group version of investment schedules related to this project, 2023-06BWG Modified, is open for comment until 10/12/23, and SAPWG has an issue paper open for comment until 9/29/23 related to SSAP No. 21R.

The project implementation is expected Q1 2025 and will include significant changes in bond reporting.

What you need to know now:

• Schedule D – Part 1 will be split into two schedules, one for Asset-Backed Securities (ABS) and one for all other bond types
  • Both schedules will have all new lines/categories
  • Certain columns will be moved from printed to electronic and several new reporting columns will be added
• Additional information will need to be reported for all bond holdings, but the most significant impact will be on ABS bonds

If your company performs investment accounting internally, you’ll need to work with your investment manager to obtain additional security details.  We also recommend contacting your software provider regarding their plans for this transition.  If your company outsources investment accounting, we recommend contacting your provider regarding their plans for this transition.

Strohm Ballweg Employee News

SB is excited to announce a well-deserved employee promotion!  Hannah Langworthy, CPA has been promoted to supervisor.  We are lucky to have you as part of our team – congratulations, Hannah!

After 17 years of devoted service to NOLHGA (National Organization of Life and Health Guaranty Associations) and the guaranty association community, Mark Femal will be leaving Strohm Ballweg at the end of 2023.  Mark still plans to continue providing limited consulting services to NOHLGA in the coming years.  SB is forever grateful for the contributions Mark has made to serving these clients, as well as leaving a great legacy and connections to NOLHGA and the guaranty associations.  We wish Mark all the best as he transitions to this next stage of his storied career!

Strohm Ballweg is pleased to announce that Jacob T. Salzmann will become a partner in our firm on January 1, 2024.  Jacob is a CPA with more than 11 years of experience in public accounting, specializing in serving insurance entities.  Congratulations, Jacob!