Skip to main content
White paper

Similar memorandum requirements under AG 55 – Summary and analysis

8 September 2025

The National Association of Insurance Commissioners (NAIC) recently adopted Actuarial Guideline 55, which covers reinsurance asset adequacy testing. AG 55 focuses on life insurers that engage in certain reserve-financing or “asset-intensive” reinsurance treaties, effective Dec. 31, 2025, on a reporting basis. It aims to ensure that ceded reinsurance does not undermine reserve adequacy. In this report, we outline the following key components of a similar memorandum and their significance:

  • Asset descriptions
  • Assumption documentation
  • Methodology
  • Rationale for degree of rigor
  • Materiality thresholds used
  • Asset adequacy criteria
  • Changes from prior year’s analysis
  • Summary of results
  • Conclusions
  • Relevant aspects of AG 53
  • Scope of the memorandum
  • Qualified actuary and standards of practice

About the Author(s)

We’re here to help