Illinois Eases Statutory Accounting Rules For 3

The Allstate units can use either the gross DTAs expected to be realized within 3 years of the balance sheet date or an amount equal to 15% of statutory capital and surplus.

The usual rules would limit Allstate to using the amount of DTAs expected to be realized within 1 year, or an amount equal to 10% of statutory capital and surplus, McRaith writes.

The Illinois division will let Continental Casualty use the amount of DTAs expected to be realized within 3 years, or an amount equal to 25% of statutory capital and surplus, through Sept. 30, 2009, McRaith writes.

Division representatives could not immediately be reached for comment on the permitted practices letters.

Analysts with Standard & Poor’s Ratings Services., New York, today said during a conference call that state insurance department moves to grant capital and surplus reporting exceptions will lead to inconsistency and raise questions about comparability.

S&P will look at the companies granted exceptions on a case-by-case basis, according to S&P analyst Kevin Ahern.

Representatives for insurers have argued that the capital and surplus exceptions simply accelerate implementation of changes already under serious consideration by state insurance regulators.