scholarly journals Accounting for European Insurance M&A Transactions: Fair Value of Insurance Contracts and Duplex IFRS/U.S. GAAP Purchase Accounting

2013 ◽  
Vol 38 (2) ◽  
pp. 332-353 ◽  
Author(s):  
Karsten Paetzmann ◽  
Christine Lippl
Keyword(s):  
Fair Value ◽  
Insurance Contracts ◽  
European Insurance ◽  
Purchase Accounting

scholarly journals Economic Scenario Generators and Solvency II

2011 ◽  
Vol 16 (1) ◽  
pp. 121-159 ◽  
Author(s):  
E. M. Varnell
Keyword(s):  
Internal Model ◽  
Building Blocks ◽  
Solvency Ii ◽  
Capital Requirements ◽  
Insurance Companies ◽  
Senior Managers ◽  
Insurance Contracts ◽  
Insurance Firms ◽  
Market Consistent Valuation ◽  
European Insurance

AbstractThe Solvency II Directive mandates insurance firms to value their assets and liabilities using market consistent valuation. For many types of insurance business Economic Scenario Generators (ESGs) are the only practical way to determine the market consistent value of liabilities. The directive also allows insurance companies to use an internal model to calculate their solvency capital requirement. In particular, this includes use of ESG models. Regardless of whether an insurer chooses to use an internal model, Economic Scenario Generators will be the only practical way of valuing many life insurance contracts. Draft advice published by the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) requires that insurance firms who intend to use an internal model to calculate their capital requirements under Solvency II need to comply with a number of tests regardless of whether the model (or data) is produced internally or is externally sourced. In particular the tests include a ‘use test’, mandating the use of the model for important decision making within the insurer. This means that Economic Scenario Generators will need to subject themselves to the governance processes and that senior managers and boards will need to understand what ESG models do and what they don't do. In general, few senior managers are keen practitioners of stochastic calculus, the building blocks of ESG models. The paper therefore seeks to explain Economic Scenario Generator models from a non-technical perspective as far as possible and to give senior management some guidance of the main issues surrounding these models from an ERM/Solvency II perspective.

scholarly journals WEWNĘTRZNY RYNEK UBEZPIECZEŃ A HARMONIZACJA KONTRAKTU UBEZPIECZENIOWEGO

2017 ◽  
Vol 4 (2) ◽  
pp. 41
Author(s):  
Zdzisław Brodecki ◽  
Katarzyna Malinowska
Keyword(s):  
Product Liability ◽  
Contract Law ◽  
Insurance Contract ◽  
Private Law ◽  
European Contract ◽  
Insurance Contracts ◽  
General Contract Law ◽  
European Insurance ◽  
The Impact ◽  
European Contract Law

Tendencies on Internal Insurance Market vis a vis Harmonization of European Insurance Contract LawSummaryIn the paper, the authors describe the main contemporary process which takes place w ithin the insurance contract law in Europe - viz the Euro-merge of private law, as well as the evolution of the insurance contract law during the last decades. The process o f the unification of European private law will also affect the insurance contract law. First of all the impact o f the development o f the ideas shaped in a form of general contract law drafted as the Restatement of the Principles of European Contract Law by the „Lando Group” is undeniable. These rules also applicable to some extent to insurance contracts show that the process of the unification o f insurance contract law cannot be stopped and that it will constantly develop. There can also be observed a process of a specific European com m on law being developed in Europe in different branches, such as product liability, consumer protection, etc. This already influences the harmonization o f the European insurance contract law, and the obstacles to harmonization, existing even ten years ago, have disappeared. The Restatement o f Insurance Contract Law being in preparation by the „Group of Innsbruck” will probably constitute a basis for a future codification o f the insurance contract law.

PHILOSOPHICAL BATTLE AGAINST MORAL HAZARD: DO WE NEED LAW METHODOLOGY CHANGE FROM “ALL OR NOTHING PRINCIPLE” TO “PRINCIPLE OF PROPORTIONALITY”?

2021 ◽  
Vol 3 (3) ◽  
pp. 124-138
Author(s):  
Olavi-Jüri Luik ◽  
Mats Volberg
Keyword(s):  
Moral Hazard ◽  
Insurance Contract ◽  
Comparative Approach ◽  
Insurance Law ◽  
Insurance Contracts ◽  
The People ◽  
Principle Of Proportionality ◽  
The Baltic ◽  
European Insurance ◽  
Legal Methodology

Introduction: this article looks into the central problem in insurance law, where the principle of “all or nothing” applied by insurance providers and legislators to moral hazard (if the risks of people are covered with insurance contracts then the people often change their risk behavior to involve higher risks by presuming that the concluded insurance contract always covers the loss incurred) is being replaced by the principle of proportionality in the modern insurance law of Western countries. Purpose: to identify significant methodological changes in determining the scope of performance of an insurance provider’s obligation caused by the application of the principle of proportionality. Methods: the authors use the approach of the Baltic Sea States (e.g. Estonia, Lithuania, Russia and Finland) and PEICL (Principles of European Insurance Contract Law1) in a comparative approach, analyzing the respective paradigmatic methodological shift (which currently among the named countries is directly reflected only in the Finnish Insurance Contract Act2) in the context of practical philosophy. Results: the paper demonstrates the necessity to change the paradigmatic legal methodology, according to which the principle of “all or nothing” would be replaced by the principle of proportionality.

Accounting Rules and Post-Acquisition Profitability in Business Combinations

2016 ◽  
Vol 30 (4) ◽  
pp. 427-447 ◽  
Author(s):  
Victoria Dickinson ◽  
Daniel D. Wangerin ◽  
John J. Wild
Keyword(s):  
Research And Development ◽  
Fair Value ◽  
Process Research ◽  
Data Availability ◽  
Financial Statement ◽  
Business Combinations ◽  
Downward Pressure ◽  
Accounting Rules ◽  
Acquisition Method ◽  
Purchase Accounting

SYNOPSIS: Prior studies report a decline or no change in acquirers' profitability after a merger or business acquisition. Those studies, however, do not consider the downward impact on profitability that stems from use of the “purchase accounting” (and in later periods, “acquisition”) method for business combinations. Drawing on financial statement data from both targets and acquirers, we estimate the effects of the application of purchase/acquisition method accounting rules on post-acquisition profitability. We find that recognition rules for acquired inventories, deferred revenues, in-process research and development (IPR&D), and depreciation and amortization expense resulting from writing acquired assets up to fair value vis-á-vis purchase/acquisition accounting methods are all important sources of downward pressure in post-acquisition profitability. We find that investors and analysts appear to recognize the effects of IPR&D in assessing post-acquisition profitability of the combined entity. The findings also suggest that investors and analysts do not appear to fully incorporate the accounting effects related to inventories, deferred revenues, and depreciation and amortization expense for post-acquisition profitability. Data Availability: All data are publicly available from sources identified.

scholarly journals Group Insurance and Reinsurance Business in the Legal Relations with an International Element

2016 ◽  
Vol 16 (2) ◽  
pp. 209-220
Author(s):  
Petr Dobiáš
Keyword(s):  
Legal Regulation ◽  
Contract Law ◽  
Insurance Contract ◽  
Legal Regulations ◽  
Insurance Contracts ◽  
Group Insurance ◽  
European Insurance ◽  
Conflict Of Law

Summary Currently, no internationally unified legal regulation of group insurance contracts and reinsurance contracts is available. As a result, a national legal regulation determined according to conflict-of-law rules is applied to both types of contracts in legal relations with an international element. The differences between national legal regulations could be overcome through the application of optional instruments, namely the Principles of the European Insurance Contract Law and the Principles of Reinsurance Contract Law.

scholarly journals International Diversity in Measuring the Fair Value of Life Insurance Contracts

2009 ◽  
Vol 34 (2) ◽  
pp. 197-227 ◽  
Author(s):  
Paul J M Klumpes ◽  
Christopher D O'Brien ◽  
Andres Reibel
Keyword(s):  
Life Insurance ◽  
Fair Value ◽  
Value Of Life ◽  
Insurance Contracts ◽  
International Diversity

scholarly journals A Reliable Fair Value for Insurance Contracts

2006 ◽  
Vol 31 (3) ◽  
pp. 512-527 ◽  
Author(s):  
Stefan Engeländer ◽  
Joachim Kölschbach
Keyword(s):  
Fair Value ◽  
Insurance Contracts

Fair-Value

Controlling ◽  
2003 ◽  
Vol 15 (3-4) ◽  
pp. 209-210
Author(s):  
Reinhard Heyd
Keyword(s):  
Fair Value

Fair Value Accounting

2015 ◽  
Author(s):  
Thomas Schildbach
Keyword(s):  
Fair Value ◽  
Fair Value Accounting
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