Michelle’s Learning Platform

Insurance Investment Accounting & SAP

Why one security produces several different numbers, and what that means operationally. US statutory accounting principles alongside US GAAP and IFRS, life and unit-linked business, and the platform and data context around insurance investment accounting.

Terminology note

In this stream, SAP means statutory accounting principles — the solvency-focused basis used for US insurance regulatory filings. Where the software vendor of the same name is meant, it is named explicitly.

Module

Insurance investment accounting foundations

Why one security produces several different numbers, and what that means for insurers' investment operations.

Foundation entry point55 min guided lesson

Multi-basis accounting: STAT, GAAP and IFRS on one portfolio

Learn the idea first. Then see a model, walk through a case, practise with support and test recall.

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lesson progress

1. Learn the idea

An insurer's investment portfolio is reported on several bases at once. US statutory accounting (SAP) serves solvency supervision and is deliberately conservative. US GAAP and IFRS serve investors and measure performance. The same bond can therefore be carried at amortised cost on one basis and fair value on another.

What you will be able to do

  • • Distinguish statutory, GAAP and IFRS measurement objectives
  • • Explain amortised cost versus fair value classification
  • • Describe why parallel ledgers exist
Accounting mismatch
Practitioner entry point50 min guided lesson

Life, unit-linked and the asset-liability connection

Learn the idea first. Then see a model, walk through a case, practise with support and test recall.

0%

lesson progress

1. Learn the idea

In unit-linked business the policyholder carries investment risk and assets are held to back specific unit funds. In general-account business the insurer carries the risk and invests to match long-dated liability cashflows.

What you will be able to do

  • • Explain how unit-linked business differs from general-account business
  • • Describe asset-liability matching in a life portfolio
  • • Identify where accounting mismatch originates
Accounting mismatch

Coming in weeks 3–8

  • —NAIC designations and capital treatment of investments
  • —Investment accounting platform architecture and data lineage
  • —Solvency II and the EMEA capital lens
  • —Impairment and expected credit loss on insurance portfolios
  • —Private assets inside insurance general accounts
  • —Insurance asset-management outsourcing models