Prophet comes with standard US GAAP functionality, both for seriatim FAS60 calculations and cohort-level FAS97 calculations, and offers a number of additional features. These include:
GAAP Long Duration Targeted Improvements
Prophet provides functionality around the new US GAAP Long Duration Targeted Improvements including cohort level Benefit Reserves and DPL as well as cohort and seriatim level DAC, Sales Inducement Assets, and Unearned Revenue Reserves. Read more on our GAAP LDTI micro-site.
Prophet’s out-of-the-box functionality supports FAS133 embedded derivative calculations for variable annuities with riders and fixed-indexed annuity products – allowing users to hit the ground running with minimal configuration. Learn more about our actuarial libraries.
SOP 03-1 reserves
Prophet supports SOP 03-1 for variable annuities with riders, out of the box, as well as universal life with secondary guarantees. It also calculates SOP 03-1 cash flows at the seriatim level, as well as aggregates these cash flows into user-defined cohorts to calculate cohort-level SOP 03-1 reserves. Learn more about our actuarial libraries.
Get a clear picture of how your company will fare under a variety of economic or non-economic conditions. Using Nested Structures, you can project future GAAP balances such as DAC and UREV, SOP 03-1 and FAS 133 reserves, under any variety of potential scenarios, as well as the future unlocking (both retrospective and prospective) impacts in the projection. Learn more about our Nested Structures functionality.
Asset liability modeling
Because US GAAP is incorporated into Prophet's asset modeling, you can calculate and project full GAAP balance sheets, including the accounting standards and impacts associated with classifying assets at trading, AFS or held-to-maturity. Prophet also lets you calculate future crediting rates based on the asset earned rate for interest-sensitive products. Learn more about our ALM capabilities.