“State regulators Sunday approved new rules for how U.S. life insurers set reserves for future claims, a decision that may ultimately free up billions of dollars for acquisitions, stock buybacks, dividend increases and other uses designed to boost the industry’s flagging returns.

Under the new rules, insurers would move to a “principles-based” system for determining the size of reserves. The current rules rely heavily on formulas the industry has long maintained are far too conservative.”

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