Clarification

s

–An article by Frederick S. Townsend in the July 16 issue, “Accounting Changes Triggered By Codification Increased Insurers’ Surplus,” included the statement that “Largest capital losses were reported by Teachers with $1,035 million.”

Townsend says Teachers Insurance and Annuity points out that National Association of Insurance Commissioners Codification required a restatement of prior years’ gains (of prepayment penalties on mortgage loans and private placement bonds) from capital gains to investment income. This cumulative effect adjustment created an $895 million adjustment as part of the $1,035 million capital loss reported for Teachers in the article.