Statutory vs gaap in regards to MTM losses.?

Question

Can anyone give me a clear explanation of the difference between statutory vs gaap accounting methods when it comes to mark-to-market losses especially for monoline insurers. Does statutory accounting require the losses to directly reduce capital while gaap doesn't? Or how exactly does it work.

Answer 1

Guess there aren't many actuaries here.

I tried reading your question, but frankly don't understand most of it.  Maybe an accountant would be more helpful?