Portfolios' valuation

  • Economic Valuation - Fair Value
  • Embedded Value
  • Value of Options and guarantees

What?:

It is extremely important for a financial body with future engagements spread in time to be capable of fully grasping the timings of its engagements. In addition, a financial body, to strengthen its management, has a certain interest in installing those tools which allow it to evaluate the different elements of its balance sheet while retaining an economic approach based on the actualisation of its cash flows.

Why?

  • Calculate the Embedded Value of an insurance company ("Traditional EV", "European EV" or "Market Consistent EV")
  • Determine the value of portfolios in case of a transfer of part, or all, of its activities
  • Valuate the options and guarantees accorded to clients.
  • Valuate the liabilities and equity under IFRS norms.
  • Valuate the "Best Estimate" of liabilities and the "Net Asset Value" under Solvency II
  • Calculate the future profitability of business (VIF or VNB)
  • Measure the a posteriori profitability of a new product or of future production.

Who?

AChief Financial Officers (CFO) and Chief Risk Officers of insurance companies, pension funds and mutual insurance bodies.

How?

  • Analyse the valuation processes and tools already in place
  • Analyse the utility of introducing and/or developing an internal valuation model in function of the working environment and the specificities of the company.
  • Offer support in the selection of a working tool.
  • Establish a timetable for the project
  • Develop and/or adapt the tool within the selected software.
  • Model the financial flows and future liabilities
  • Define the plan and tests of the model
  • Test the model
  • Validate the model
  • Prepare the roll-out of the model
  • Draft the methodology
  • Ensure the transfer of the "know-how"

The Elips Actuarial Services teams are available to intervene and provide support for one or several of the stages described above. Elips Actuarial Services can also offer its expertise for an analysis and an optimisation of procedures within a "Fast Close" closing scenario.

The advantages of Elips Actuarial Services ?

Our experience

  • A team of actuaries with significant experience in this domain. Experience acquired by our specialists during their previous functions within insurance companies and during their various missions for Elips Actuarial Services with different clients, all market leaders in their respective markets.
  • Our team of specialists has a profound experience in the different market-recognised tools for valuation modelling: SAS, ReMetrica, Prophet, Matlab, ...
  • Our specialists can also work directly on the tools you have already installed.

Guaranteeing results

We offer undertakings on deliverables, budget and planning.

Project management

We can manage all the organisation, delivery and follow-up on a project

Know-how transfer - and training

We operate a mixed project management approach involving our consultants and your staff teams. Those teams, at the end of the project, are thus capable of maintaining the works carried out, and of adapting them in function of future portfolio evolution.

Elips Actuarial Services References

  • Implementation and development of a model for MCEV calculation for one of the top 10 Belgian life insurance companies. The model we currently employ was developed using "Prophet" software. It is also used today for IFRS calculations.
  • Valuation of the insurance portfolio for an insurance group among the top 10 in Belgium.