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  #1  
Old 10-21-2010, 01:17 PM
ishing ishing is offline
 
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Default HGAAP and PGAAP

Can someone give me a quick idiots guide to the difference between the 2. I am looking at the situation of one Life company being bought by another. I think HGAAP is what the purchase company was reporting on before the purchase. Thanks!
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Old 10-21-2010, 01:22 PM
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Both the US GAAP for Life Insurers and the Life Insurance Mergers and Acquisitions books can describe the differences for you.
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Old 10-21-2010, 02:00 PM
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You could also do a search of the Outpost. I am sure this question has been asked before.
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Old 10-21-2010, 02:21 PM
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Quote:
Originally Posted by ishing View Post
Can someone give me a quick idiots guide to the difference between the 2. I am looking at the situation of one Life company being bought by another. I think HGAAP is what the purchase company was reporting on before the purchase. Thanks!
H = historic
P = purchase
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Old 10-21-2010, 02:26 PM
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Quote:
Originally Posted by California View Post
H = historic
P = purchase
The block of business that was purchased is done on PGAAP. Anything they put on their books AFTER the sale is done on HGAAP. This is not intutitively obvious, though.
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Old 02-25-2020, 03:44 PM
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Bumping a decade old thread to ask about setting assumptions after a purchase.

I know that assumptions are reset to estimate the PGAAP liabilities and that DAC gets set to zero (DAC Asset is part of the VOBA calculation as I understand it).

Are GAAP Reserve assumptions able to be unlocked and reset? That would then carry-over to DAC too, since FAS 60 requires them to be the same?

And if assumptions can be unlocked and reset how is the net premium ratio calculated for inforce policies? From the purchase date or from the issue date of the policy?
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