New Credit Loss Rules May Smudge Life Insurers’ Earning: Moody’s

February 1, 2020 by Allison Bell

New credit loss forecasting accounting rules could make life insurers’ earnings go up and down a little more, and make their earnings reports harder to compare, according to rating analysts at Moody’s Investors Service.

But, overall, the Financial Accounting Standards Board’s new Current Expected Credit Losses (CECL) reporting rules should have only a minor impact, and no impact on insurers’ ratings, Moody’s analysts write in a new commenter.

CECL Basics

FASB developed the CECL rules in an effort to help investors and others understand how changes in interest rates, consumer financial strength, and other factors might affect the performance of the credit arrangements companies have provided.

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Originally Posted at ThinkAdvisor on January 31, 2020 by Allison Bell.