NU Online News Service, Aug. 30, 1:58 p.m. EDT

A change in how companies account for their deferred acquisition costs will probably have a greater impact on life and health insurers than property and casualty carriers and will not affect companies’ bottom lines, a new report said.

In its weekly credit outlook, Moody’s Rating Service said the U.S. Financial Accounting Standards Board (FASB) issued a draft proposal to change the way insurance companies account for deferred acquisition costs (DAC). These are the costs insurers incur in the acquisition or renewal of insurance contracts.

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