Reserve calculations may be made from factor or first principles, including waiver of premium reserves for all traditional, term, and endowment policies and associated riders. All current regulations are supported, including VM-20 and Accounting Standards Update (ASU) No. 2018-12 as prescribed by the Financial Accounting Standards Board.

The MG-Triton® Traditional Life valuation system performs all of the necessary statutory, tax, and GAAP reserve calculations for term and permanent life insurance base policies and riders as defined by U.S. regulatory standards, including:

• Statutory methods include support for all established methods including Guideline XXX, New York Regulation 147, and VM-20
• GAAP methods include Accounting Standards Update (ASU) No. 2018-12, as well as legacy SFAS 60; SFAS 97 (Limited-Pay); SFAS 113, SFAS 115, and SFAS 120

To support statutory and tax valuations, MG-Triton Traditional Life provides:

• A seriatim results file with statutory and tax reserves and results of supporting calculations
• Change in reserve report
• Exhibit 5 report
• In-force projections of exhibit of life, statutory and tax reserves, and statutory net income
• Detailed audit reports on a per-policy basis

For GAAP, MG-Triton Traditional Life provides:

• A seriatim results file with GAAP reserves and DAC and results of supporting calculations for legacy GAAP calculations
• Change in reserve and change in DAC asset reports, based on seriatim-level calculations for legacy GAAP, or cohort-level calculations for Accounting Standards Update (ASU) No. 2018-12
• In-force projection of cash flows, pretax profits, source of earnings, and loss recognition
• Detailed audit reports on a per-policy basis

A wide variety of contractual features are available as well, including:

• Premium schedule: level, limited-pay, step, graded and re-entry
• Dividends: annual policyholder dividends and terminal dividends
• Benefit structure: level, increasing, decreasing
• Number of insureds: single, joint, joint and last survivor ("second-to-die")
• Special features: premium vanish, retirement income, pre-need, long-term care combination products, deferred maturity, extended term, reduced paid-up, reinsurance

Valuation of fixed, variable, and fixed-indexed deferred annuities is provided. Broad coverage for guaranteed minimum benefits is available. Full multi-scenario calculations are offered for SOP 03-1 and DAC corridor analysis. FIAs supported by AG35 and, for GAAP, by the budget method. In addition, a wide range of options are available to support CARVM calculations and current regulations, including AG43’s Standard Scenario.

The MG-Triton® Deferred Annuity (DA) valuation system provides comprehensive valuation calculations as defined by current U.S. regulatory standards, including:

• Statutory and tax: Standard Valuation Law:
• CARVM: AG 33, 34, 35
• VACARVM: AG43 (Standard Scenario, & CTE Allocation)
• GAAP: SFAS 97, 115, and 133 (for FIA contracts); SOP 03-1 and 05-1; and Accounting Standards Update (ASU) No. 2018-12 as prescribed by the Financial Accounting Standards Board

To support statutory and tax valuations, MG-Triton DA provides:

• Summary reports including aggregate reserves, AG43 Standard Scenario reserve components, control report, and exhibit of contracts
• Reasonableness tests of reserves
• A seriatim results file with statutory and tax reserves and results of supporting calculations
• In-force projection capabilities of statutory and tax reserves
• Detailed audit reports on a per-contract basis

For GAAP, MG-Triton DA provides:

• Extensive summary and projection reports
• Gross profit margins and amortization ratios
• Amortization under ASU No. 2018-12
• Benefit reserves and bonus liability
• Loss-recognition analysis
• Market Risk Benefits
• In-force projection of pretax profits and cash flows
• Detailed audit reports by contract, cohort, and subcohort groups

A wide variety of contractual features are available within MG-Triton DA. Highlights include:

• Extensive options to cover credited interest methods in the market today
• Guaranteed minimum death benefits, with the flexibility to define benefit formulas on a modular basis and to specify formulas on a contract-by-contract basis
• Guaranteed living benefits: GMWBs (including Lifetime payouts), GMABs and GMIBs
• Bonuses, on a wide variety of bases

Valuation of fixed and variable immediate annuities, and structured settlement contracts is provided. Coverage for variable annuity guaranteed living benefits is supported. Features such as early retirement, preretirement death benefits, and mortality improvement are easily accessible in the user interface.

This MG-Triton® Payout Annuity (PA) valuation system has the ability to calculate statutory, tax, and GAAP reserves. The system can also process in-force projections for a wide range of payout annuities, including:

• Certain and life
• Life only
• Certain only
• Temporary life
• Joint life
• Variable payout annuities
• Cash refund annuities
• Complex structured settlements including Actuarial Guideline IX-B carve-out and graded interest methods
• Increasing/decreasing payouts
• Substandard policies: percentage increase, constant extra deaths, rated age
• Mortality projection scale factors
• Early retirement
• Preretirement death benefits

Statutory

Statutory reserves are calculated in full compliance with the Commissioner's Annuity Reserve Method as defined by the National Association of Insurance Commissioners Model Standard Valuation Law. In addition, the following are fully supported:

• Actuarial Guideline IX, Classification of Individual Single Premium Immediate Annuities for Application of the Valuation and Nonforfeiture Laws
• Actuarial Guideline IX-A, Use of Substandard Annuity Mortality Tables in Valuing Impaired Lives Under Structured Settlements
• Actuarial Guideline IX-B, Clarification of Methods Under Standard Valuation Law for Individual Single Premium Immediate Annuities, Any Deferred Payments Associated Therewith, Some Deferred Annuities, and Structured Settlements Contracts
• Actuarial Guideline XLIII, CARVM for Variable Annuities
• Mortality projections, including "generational mortality" methodology
• Calculation of standard mortality reserves for substandard contracts
• Ability to group benefits within a contract together or treat benefits individually

For fixed immediate annuity contracts issued after December 31, 2017, the approaches described in Valuation Manual (VM) – 22: Maximum Valuation Interest Rates for Income Annuities are applicable.

Tax

Tax reserves recognize the above Statutory reserving methodologies and substitutes any assumptions specifically mandated by tax laws. Tax reserves are calculated in compliance with the 2017 Tax Cuts and Jobs Act changes to the Internal Revenue Code.

GAAP

GAAP reserves are calculated in compliance with the Statement of Financial Accounting Standards No. 97, No. 60, No. 91, and Accounting Standards Update (ASU) No. 2018-12 as prescribed by the Financial Accounting Standards Board. Deferred acquisition cost asset and unearned profit reserve components are presented in great detail. Annual and monthly projections of the GAAP values are provided.

Provides support for long-term care, long-term disability, disability income, critical illness, and Medicare supplement policies and their riders. The system calculates both active and claim reserves from either first principles or tabular claim costs, while maintaining multiple statutory bases.

The MG-Triton® Health valuation system performs all of the necessary statutory, tax, and GAAP reserve calculations for health insurance base policies and riders as defined by U.S. regulatory standards, including gross premium valuations.

To support statutory and tax valuations, MG-Triton Health provides:

• Support for claim costs and first-principle calculations, including both lives-based and length-of-stay-based
• Summary reports including aggregate reserves by line of business, control report, exhibit of contracts, and analysis of change in statutory reserves
• A seriatim results file with statutory and tax reserves and results of supporting calculations
• Exhibit 6 & Exhibit 8 reports
• In-force projections of exhibit of contracts, statutory and tax reserves, and statutory net income
• Detailed audit reports on a per-contract basis

For GAAP, MG-Triton Health provides:

• GAAP methods include Accounting Standards Update (ASU) No. 2018-12 as prescribed by the Financial Accounting Standards Board, as well as legacy SFAS 60
• Support for claim costs and first-principle calculations
• Historical GAAP and purchase GAAP
• Summary reports and projections, including change in deferred acquisition cost asset, change in benefit reserve, as well as change in deferred profit liability for limited-pay plans
• In-force projection of cash flows, pretax profits, and source of earnings
• Detailed audit reports on a per-contract basis

A wide variety of contractual features are available within MG-Triton Health, including:

• Premium schedule: level, limited-pay, step, and graded
• Benefit structure: level, increasing, decreasing, and multiple benefits (as many as five benefit streams)
• Policy riders: Social Security offset, cost-of-living increase, return of premium, waiver of premium, nonforfeiture, and shared care
• Other features: SOP 05-1 support, pivot reserving for premium increases