Asset liability management

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In today's increasingly sophisticated life insurance marketplace, asset liability management (ALM) is essential in helping companies understand the risk level in their portfolios. ALM is critical in analysing and monitoring the relationship between insurance liabilities and the assets covering them, and in studying the interaction between assets and liabilities.

Milliman clients benefit from our Swiss life team's extensive experience working with European companies in the development of ALM models. We supply insight in valuing financial guarantees, analysing inforce portfolios, and monitoring investments through duration gap and sensitivity analyses, using deterministic or stochastic approaches.

Recent regulatory developments and methodology changes, including the Swiss Solvency Test and European embedded value, require companies to value the financial guarantees in their inforce portfolio, employing more precise stochastic modelling than was previously needed. Milliman offers expert assistance in the creation and analysis of these advanced models.

Advanced software and unbiased insight

Our financial projection software, MG-ALFA™, is one of the few available models designed from inception to carry out complex ALM analysis, allowing companies to implement powerful models on a smaller budget and significantly shorter timeframe than that of competing tools. We also can assist companies in developing models using third-party software.

In Europe and around the globe, Milliman is a trusted source of independent thought leadership on best methods for performing asset liability management. Our unbiased approach allows us to focus solely on achieving client objectives.