ASSET LIABILITY MANAGEMENT (ALM)

Knowledge of Insurance Liabilities Sets Us Apart.

Most insurance company CFOs would describe ALM as crucial and we consider it one of our very best value-added management factors. Minimizing volatility of total income without materially reducing return is only possible if the measurable drivers of risk in the liability portfolio are understood.

An important part of our process involves the dissemination of data from a client’s actuary, treasurer, financial statements and industry benchmarks to develop model assumptions that form our existing liability modeling framework. We then produce a liability dashboard for each product line. Here is a sample for a P&C company, on a renewal calculation basis (assuming 90% of existing business renews which captures the optionality of renewal cash flow).