Best's Special Report: Disclosures Suggest Wide Variation in IFRS 17 Impact on Shareholders’ Equity

The impact on shareholders’ equity of transition to the new IFRS 17 accounting standard is considerably more pronounced for life insurers than their non-life counterparts, according to analysis from AM Best.

A new Best’s Special Report, “Disclosures Suggest Wide Variation in IFRS 17 Impact on Shareholders’ Equity,” indicates that the range of outcomes for life insurers under IFRS 17 is wide, and biased to the downside, although a reduction is far from automatic. For non-life insurers, the impact is considerably narrower and biased to the upside, the report notes. The report discusses some sources of the transition impact.

In recent months, several (re)insurers accompanied their usual investor presentation with early estimates of a few major selected measures under the new standard.

AM Best’s new special report analyses disclosures from certain larger (re)insurers to identify some of the more significant changes, with a focus on shareholders’ equity. The report then comments on inputs for non-life reserve risk into Best’s Capital Adequacy Ratio (BCAR) under IFRS 17.

To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=331513.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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