Enhancements to existing AXIS liability modules

Enhancements to the base AXIS liability modules are focused on the core calculations required both for current period actuarial balances and financial projections. The base liability modules now contain the enhancements required to calculate actuarial balances required by the ASU with grouping of contracts and historical data input by cohort.

The base liability modules have been enhanced to include new "US GAAP" sections in both "Cell" and "Higher Level" object screens leaving existing Reserve sections for current US GAAP modeling and other purposes.

New Cohort and Subcohort objects have been provided, allowing for user to create desired grouping of contracts for the US GAAP calculations.

New US GAAP history tables, specifically designed for each contract type defined within the ASU standard, are provided which are loaded with cohort history from transition or cohort inception through a conventional DataLink process.

Current period direct balances for the Liability for Future Policyholder Benefits (LFPB), Deferred Profit Liability (DPL), Other Additional Liability (OAL), Market Risk Benefit Liability (MRB), Sales Inducement Liability (SIL), Terminal Dividend Liability (TDL), and Unearned Revenue Liability (URL), as well as a Deferred Acquisition Cost (DAC), Sales Inducement Asset (SIA), and Values of Business Acquired (VOBA) assets.

Additionally, current period balances for either an integrated Cost of Reinsurance (CoR) or separate ceded Liability for Future Policyholder Benefits (Ceded LFPB) and residual Cost of Reinsurance (CoR) liability, Cost of Reinsurance Other Additional Liability (CoR OAL), Ceded Market Risk Benefit Liability (Ceded MRB), and net balance for Deferred Acquisition Cost (DAC) and Sales Inducement Asset (SIA) may be determined.

Using the base liability modules functionality, full projection of GAAP style financials with dynamic revaluation using actual and projected history, assumption unlocking, and balance amortization as defined by the standard can be performed in the Liability Subfund, Fund, or Office Levels. The actuarial balances are determined based on the "Reporting Frequency" selection in the "US GAAP" section of Dataset parameters.

Additionally, using the base liability modules functionality, the calculated actuarial elements of current period income reporting can be determined through a combination of:

• Separate pre-runs to enable the calculation of the amortization and experience adjustments for DAC, sales inducement assets, and unearned revenue liabilities
• Separate batch calculations to revalue the starting liability and a post run process to determine the resulting gain or loss
• A separate batch run to determine the OCI through post-run calculations

Similarly enhanced disclosures required under ASU 2018-12 are supported through a multiple run attribution analysis approach combining results from separate AXIS calculations. Component steps can be defined through multiple overrides and batch processes and results saved for subsequent extraction and assembly.