NU Online News Service, Oct. 20, 1:57 p.m. EDT
New accounting rules effective in the 2012 first quarter will impact life insurers more than property and casualty companies, says Moody's Investors Service, and the rules, by themselves, will not impact the rating agency's view of insurers' creditworthiness.
But Moody's adds, "However, the adoption of the new rules could have secondary effects, for example if they reveal that a firm's previous DAC [deferred acquisition costs] policies have been more aggressive than those of peers, or if their impact on equity or earnings negatively affects an insurer's bank covenants, investor demand or access to capital."
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