Risk and Capital

The management and modelling of risks is one of the most important areas for our clients. A firm’s risk profile – and how this is managed – not only affects the security of policyholders, but also drives returns to shareholders.

We have extensive experience of developing, building and validating risk-based capital models – including Solvency II Internal Models and Economic Capital models. We also have experience of performing model review and simplification – covering asset models, liability models and bonus setting models. We provide straightforward, practical advice that is based on our knowledge and experience from across the industry. We can provide insights and advice to help you optimise your balance sheet, whilst complying with your regulatory requirements.

We provide straightforward, practical advice that is based on our knowledge and experience from across the industry.

We are highly experienced and deeply knowledgeable in matters of Solvency II prudential regulation and FCA conduct of business. Whether it be developing a solution for you, giving an independent second opinion on a solution you’ve already developed, or providing the experienced back-up you need to get the regular jobs done, we have the right people to support you in solving the technical actuarial problems confronting your business.

We’re able to act as Chief Actuary and With-Profits Actuary on an outsourced basis, having directly acted in these roles, and other senior support roles, for several UK insurers. We offer a full range of service options from a Chief Actuary supported by your in-house team through to a fully outsourced function.

We also have the skills and experience to act as Independent Expert and Independent Actuary on business transfers and transformations. Our team of specialists have played various key roles in some of the most high-profile transfers, restructuring projects and business reorganisations in the UK insurance industry.

Our team of specialists have played various key roles in some of the most high-profile transfers, restructuring projects and business reorganisations in the UK insurance industry.

The past ten years has seen a lot of mergers & acquisitions (M&A) activity in the life insurance sector – alongside broader capital management activity. The drivers of this activity (primarily low interest rates and inefficient operating models for run-off portfolios) do not look likely to change in the short- or medium-term. Combined with changing solvency regulation in the UK (post-Brexit) and Europe (via the EIOPA 2020 review), we fully expect this activity to continue both in the UK and in Europe.

We can support insurers in all aspects of capital and M&A transactions from the design or identification stage, through the due diligence and pricing process, to the post-transaction implementation, integration and monitoring.

We have also been helping a number of potential new entrants to the UK insurance market by supporting with business cases, target operating model support and producing key financials.

We can support insurers in all aspects of capital and M&A transactions from the design or identification stage, through the due diligence and pricing process, to the post-transaction implementation, integration and monitoring.