U.S. life insurer use of non-standard accounting practices was common in 2007 as well as in 2008, but it seems to have had a bigger effect on 2008 capital and surplus figures.

Non-standard practices increased the users’ total capital and surplus by a total of 0.07% in 2007 and by a total of 5.1% in 2008, according to an analysis of new 2007 and updated 2008 accounting practices data from the National Association of Insurance Commissioners, Washington.

The NAIC released a list of most of the U.S. life insurers using non-standard accounting practices in 2008 statutory financial statements earlier this week. The NAIC followed up later with a more complete list of the 2008 users of non-standard practices and a list of 2007 users of non-standard practices.

The report for 2008, which includes information from statutory filings and amendments processed by the end of the day on March 10, now includes some companies left out of the original draft and corrections of the figures for some of the companies.

To capture filings and amendments processed later, “this spreadsheet will be updated on a weekly basis during March 2009,” the NAIC says. “The data is furnished to the NAIC by third parties and is provided ‘as is.’ The NAIC does not guarantee the truth, accuracy, adequacy or completeness of the data.”

Some columns in the reports describe use of non-standard practices “prescribed,” or required, by state insurance regulators.

The reports also include separate columns describing use of non-standard practices permitted by state insurance regulators.

The latest figures show that 64 U.S. life insurers have used prescribed practices in a way that affected their 2008 statutory capital and surplus, and 78 used permitted practices. The companies are reporting a total of $33 billion in net losses for 2008 on $165 billion in capital and surplus. Prescribed practices added $31 million to capital and surplus, and permitted practices added $8.8 billion to capital and surplus.

In 2007, prescribed practices affected capital and surplus results at 69 insurers, and permitted practices affected capital and surplus at 24 insurers. The companies reported $17 billion in net income on $162 billion in capital and surplus. Prescribed practices added $87 million to capital and surplus and permitted practices subtracted $315 million from capital and surplus.

Links to the 2007 non-standard practices report and the updated 2008 non-standard practices report are available here.