State Street Global Services

Services for Variable Insurance Products

Facing new operational challenges brought on by the changing demands of regulation and reporting, you need accurate, timely and cost-efficient information related to your variable insurance products. While your focus must be on designing and underwriting insurance products and providing high-quality client service, your insurance business model can often get weighed down by the burdens of accounting, reporting and unitization tasks.

State Street has been providing the insurance industry with market-leading accounting and reporting services for variable insurance products since 1984. As a market leader, we are engaged in industry-wide discussions on new regulations that are significantly impacting your business, such as Solvency II and FATCA, and we are focused on developing products and services that help you meet the challenges of these new regulations.

Our robust, integrated applications help you manage back-office accounting and reporting requirements for the newest and most complex variable insurance products. In our product offering, we leverage Princeton Financial® Systems’* PAM® platform to support your accounting, trade placement and reporting needs. Our extensive capabilities and specialized knowledge let you focus on your core business, while benefiting from cost-effective solutions.

Our service for variable insurance products helps you reduce the potentially high cost of your accounting and reporting through:

  • Daily placement of trades with mutual fund complexes

  • Daily receipt of NAV and dividend factor information

  • Daily computation of unit valuations

  • Monthly and ad hoc reporting

  • Integration of expenses, valuation, and transactional activity with client’s general ledger

  • Regulatory and financial reporting, and performance calculations

  • Automated recalculation and roll-forward process for clients using the net investment factor method

  • Fully scalable solution; services offered à la carte or as an end-to-end solution

  • Flexibility to support rollout of new products

Our service combines a wide range of reporting functions with consistent daily processing of policyholder/contract holder activity for each investment option and for each insurance product. We utilize highly automated processes for both the balance sheet, and net investment factor methods of accumulation and annuity unit value computations.

State Street receives and processes policyholder/contract holder activity from our clients’ administration systems, managing daily investment activity data of investment options and insurance products. We convert this dollar activity to a net subscription/redemption for each mutual fund and product, and then communicate the trade to the mutual fund transfer agent through the NSCC (or any other preferred means). Our product accrues expenses daily to compute precise accumulation and annuity unit values in addition to consistently obtaining the NAV and dividend information for each of the funds.

*Princeton Financial LLC ® is a wholly owned subsidiary of State Street.


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