As a result of C3 Phase 2, most companies with variable annuity business calculate risk-based capital for these products using the principles-based approach specified in the American Academy of Actuaries' June 2005 report. Actuarial Guideline VACARVM would require that companies use a similar principle based approach to determine variable annuity reserves. The implementation efforts and issues for both these processes depend on the type and significance of guaranteed benefits associated with a company's VA products and the diversity of the in-force business.

During this session an expert panel will provide an update on recent developments and discuss the following topics:

• The current status of AG VACARVM
• The LHATF AG VACARVM survey conducted in the Spring of 2007
• Implementation issues
• Standard scenario issues
• Challenges in building a fully integrated model
• Practical issues in determining prudent estimate assumptions
• Ideas for improving the process

At the conclusion, you'll have a better understanding of the status of AG VACARVM, the challenges of implementing a principle based approach for variable annuities, as well as ideas for improving the process for future years.