Reinsurance Asset Adequacy Testing Update

On Monday, July 14, 2025, the National Association of Insurance Commissioners’ (“NAIC”) Life Insurance and Annuities (A) Committee (the “(A) Committee”) voted to adopt the draft of Actuarial Guideline LV titled “Application of the Valuation Manual for Testing the Adequacy of Reserves Related to Certain Life Reinsurance Treaties” (“AG55”). AG-55, which proposes enhancements to the asset adequacy testing (“AAT”) methodology for assets supporting life and annuity reinsurance transactions, has been under development for nearly a year by the (A) Committee’s Life Actuarial (A) Task Force. Please see the attached copy of the draft AG-55, along with a more detailed description of the guideline covered in our NAIC Spring National Meeting report here.

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