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As the holidays approach, JLK Rosenberger is taking a new perspective on a holiday classic – the Twelve Days of Christmas. Rather than filling your head with turtle doves and gold rings, we are focusing on the latest changes to SSAP and how they will impact your insurance company in 2019 and beyond.
Investments in Subsidiaries
Nonsubstantive changes to SSAP No. 97 – Investments in Subsidiary, Controlled and Affiliated Entities to clarify how to account and disclose when an entity’s share of losses in their investments in an SCA exceeds their investment. Added language explains that entities whose share of losses in an SCA exceeds its investment shall continue to reduce its investment in the SCA to zero and shall not provide for additional losses. The additional language clarifies that the reporting entity shall track and disclose its share of the SCA losses, as well as the overall investment in the SCA. The tracking begins at the time the investment falls below zero and is required to continue for two annual periods following the investment recovering to a surplus position.
If you have questions about how this clarification will impact your insurance entity, please contact us at 818-334-8623, or click here to contact us.