The U.S. insurance industry is undergoing a major shift in how it calculates statutory reserves for fixed annuity products. Leading this transformation is VM-22, a new reserving standard that officially became mandatory in 2025 for many non-variable annuities. With its adoption, insurers are moving away from traditional formula-based methods and embracing a more nuanced, principle-based approach—one that better reflects the complexity and risks of modern annuity products.