Fair valuation of life insurance company liabilities

  • Douglas C. Doll
  • C. Phil Elam
  • James E. Hohmann
  • Jacqueline M. Keating
  • Douglas S. Kolsrud
  • Karen Olsen MacDonald
  • S. Michael McLaughlin
  • Thomas J. Merfeld
  • Stephen D. Reddy
  • Robert R. Reitano
  • Richard S. Robertson
  • Edward L. Robbins
  • David Y. Rogers
  • Henry W. Siegel
  • David F. Babbel
Part of the The New York University Salomon Center Series on Financial Markets and Institutions book series (SALO, volume 1)

Abstract

Historically, accounting authorities have prescribed a high degree of consistency between the asset and liability sides of balance sheets. However, a significant departure from that premise occurred in May, 1993 with the issuance of Statement of Financial Accounting Standards (SFAS) No. 115. According to SFAS 115, certain classes of assets are to be carried at ‘fair value’, while other assets and all liabilities remain at book value. The scope of SFAS 115 includes financial institutions and consequently, insurance companies are also required to abide by the standard.

Keywords

Interest Rate Cash Flow Option Price Market Interest Rate Generally Accepted Accounting Principle 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media Dordrecht 1998

Authors and Affiliations

  • Douglas C. Doll
    • 1
  • C. Phil Elam
    • 1
  • James E. Hohmann
    • 1
  • Jacqueline M. Keating
    • 1
  • Douglas S. Kolsrud
    • 1
  • Karen Olsen MacDonald
    • 1
  • S. Michael McLaughlin
    • 1
  • Thomas J. Merfeld
    • 1
  • Stephen D. Reddy
    • 1
  • Robert R. Reitano
    • 1
  • Richard S. Robertson
    • 1
  • Edward L. Robbins
    • 1
  • David Y. Rogers
    • 1
  • Henry W. Siegel
    • 1
  • David F. Babbel
    • 2
  1. 1.John Hancock Life Insurance Co.USA
  2. 2.The Wharton SchoolUniversity of PennsylvaniaUSA

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