Who may be interested: Insurance Companies
Quick Take: In an Industry Letter, the SEC’s Division of Investment Management stated that insurance companies may file financial statements prepared in accordance with statutory accounting principles permitted by the company’s domiciliary state regulator, and audited by an independent auditor (SAP financial statements), in their registration statements filed on Form S-1 for certain covered insurance products.
The SAP financial statements may be filed in place of GAAP financial statements in registration statements filed on Form S-1 for: (i) non-variable, index-linked life insurance policies, (ii) combination life insurance policies that offer variable investment options as well as index-linked investment options, and (iii) contingent deferred annuities. An insurance company using SAP financial statements must first file a letter on the SEC’s EDGAR system that states that the company intends to file SAP financial statements and includes certain representations and acknowledgements provided in the Industry Letter.
The Industry Letter can be found here.
Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.