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Valuation Analysis (E) Working Group

2022 Membership

2022 Adopted Charges

The Valuation Analysis (E) Working Group will:

  1. Respond to states in a confidential forum regarding questions and issues arising during the course of annual principle- based reserving (PBR) reviews or PBR examination, which also may include consideration of asset adequacy analysis questions and issues.
  2. Work with NAIC resources to assist in prioritizing and responding to issues and questions regarding PBR and asset adequacy analysis, including actuarial guidelines or other requirements making use of or relating to PBR, such as Actuarial Guideline XXXVIII—The Application of the Valuation of Life Insurance Policies Model Regulation (AG 38), Actuarial Guideline XLVIII—Actuarial Opinion and Memorandum Requirements for the Reinsurance of Policies Required to be Valued Under Sections 6 and 7 of the NAIC Valuation of Life Insurance Policies Model Regulation (AG 48), and the Term and Universal Life Insurance Reserve Financing Model Regulation (#787).
  3. Develop and implement a plan with NAIC resources to identify outliers/concerns regarding PBR/asset adequacy analysis.
  4. Refer questions/issues, as appropriate, to the Life Actuarial (A) Task Force that may require consideration of changes/interpretations to be provided in the Valuation Manual.
  5. Assist NAIC resources in the development of a standard asset/liability model portfolio used to calibrate company PBR models.
  6. Make referrals, as appropriate, to the Financial Analysis (E) Working Group.
  7. Perform other work to carry out the Valuation Analysis (E) Working Group procedures.


Support Information for Regulators Regarding 
Principle-Based Reserves or Asset Adequacy Analysis

NAIC Support - Regulators can submit questions or request assistance from NAIC support staff relating to Principle-Based Reserves (PBR) or Asset Adequacy Analysis. Assistance that may be provided by NAIC support staff includes, but is not limited to: modeling of insurance cash flows to assist in conducting analysis and examinations; verification of PBR exclusion test calculations; and verification of the components of the PBR (Net Premium Reserve, Deterministic Reserve, Stochastic Reserve) on a sample of the company's contracts. Regulators can submit questions and requests for assistance to the NAIC support for the Valuation Analysis (E) Working Group (VAWG) at:

VAWG Support - Regulators can also submit issues regarding PBR or Asset Adequacy Analysis directly to the VAWG. These submissions will typically relate to a significant concern regarding a PBR or Asset Adequacy Analysis review of a domestic company. However, there could be other reasons for a submission. To submit an issue to be discussed and addressed by the VAWG, regulators should complete the submission form and email the completed form to the NAIC support for the VAWG

Related NAIC Publications


Media Inquiries
(816) 783-8909

Pat Allison
Managing Life Actuary

Please see the current Committee List for a complete list of committee members.