Summary: Gurugram (Haryana) [India], Feb 14 (ANI): The Guardian Life Insurance Company, one the largest mutual life insurance companies in the United States, has organised a two-day aACAyGuardian Leadership ConclaveaACAO in Haryana's Gurugram on Thursday.Ee
Gurugram (Haryana) [India], Feb 14 (ANI): The Guardian Life Insurance Company, one the largest mutual life insurance companies in the United States, is organising a two-day aACAyGuardian Leadership ConclaveaACAO in Haryana's Gurugram from Thursday.Ee
* The number of mutual life insurance companies is shrinking because of the growth of independent agents and demutualization/consolidation within the mutual sector.
* Fifteen years ago many mutual life insurance companies chose to demutualize.
The Finance Ministry is considering applying the corporate rehabilitation law to failed mutual life insurance companies
to better protect policyholders, ministry officials said Monday.
The Financial Accounting Standards Board and the American Institute of CPAs have issued statements concerning the ways mutual life insurance companies should account for and report certain contracts.
"Until now, mutual life insurance companies have reported financial information to policyholders and creditors on a statutory basis that is prescribed by state insurance regulators," said FASB practice fellow Kevin Mead.
* Voluntary reserves under IRC section 809 (mutual life insurance companies
reviewed the stock-price performance of six mutual life insurance companies that converted to stock companies and sold shares through an IPO and measured the change in share price from the date of public offering to the six-month anniversary of that offering.
The research shows the average first-day appreciation in share price for converted mutual life insurance companies exceeded 12%, demonstrating a fair-market value well above the underwriter's determined price.
"Earlier this year," Mead explained, "the American Institute of CPAs issued a proposal that would establish how mutual life insurance companies
should report insurance in financial statements prepared according to GAAP.
An exposure draft issued by the Financial Accounting Standards Board clarifies that all applicable authoritative accounting pronouncements, including those of the FASB, must be followed by mutual life insurance companies
that describe their financial statements as in conformity with generally accepted accounting principles.