Industry Updates

NALC Comment Letter, Actuarial Guideline for Reinsurance Asset Adequacy Testing

February 28, 2025

Submitted electronically to NAIC Life Actuarial (A) Task Force (LATF) and the Minnesota Department of Commerce

Chair Hemphill and Mr. Andersen:

This letter is submitted on behalf of the National Alliance of Life Companies (NALC).
a trade association of more than fifty life insurance companies and associates that represents the interests of smaller and mid-sized life insurers, specialty insurers, and their policyholders. Thank you for the opportunity to provide our comments on the most recent exposure draft of Actuarial Guideline for Reinsurance Asset Adequacy Testing (the guideline).

We appreciate concerns that have been expressed regarding U.S. based life insurers engaging in asset intensive, offshore reinsurance transactions. The NALC supports effective solvency regulation and giving regulators the tools they need to ensure that reinsurance assets are adequately tested to cover future liabilities.

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