Risk and capital

A firm’s risk profile, and how it’s managed, affects policyholders’ security and drives shareholder returns. That’s why managing and modelling risk is so important.  

Delivering the modelling required to manage the balance sheet, working alongside changes in regulation such as IFRS 17 and additional regulatory stress testing, means even more demand for modelling capacity.

We develop, build and validate risk-based capital models, including Solvency II internal models and economic capital models. We perform model review and simplification across asset models, liability models and with-profits funds.

Our straightforward, practical advice and market-leading insight helps you optimise your balance sheet while complying with regulatory requirements.

How we help

Our industry-leading specialists help clients make the most efficient use of capital. We use capital management and optimisation initiatives with capital modelling to help clients understand balance-sheet impacts in an ever-changing world.

Our services include:

• developing, validating, and using risk-based capital models
• acting as an independent expert or actuary
• supporting new entrants to the insurance market
• strategic support on the management of with-profits fund
• acting in regulated roles, such as Chief Actuary and With-Profits Actuary; and
• support in drafting and reviewing regulatory applications

We are experienced and knowledgeable in Solvency II prudential regulation and FCA conduct of business. Whether you need to develop a new solution, get an independent second opinion on an existing solution, or simply need experienced back-up to get the day job done, we have the right people to solve technical actuarial problems.

We can act as an outsourced chief actuary or with-profits actuary, carrying out these and other senior roles for several UK insurers. We’re flexible too and can offer a range of options, from chief actuary supported by an in-house team, through to a fully outsourced function.

We also act as independent expert and independent actuary on business transfers and transformations. Our specialists have played a part in some of UK insurance industry’s highest profile transfers, restructures and reorganisations.

How we help

Our team can act as:

• outsourced Chief Actuary and/or With-Profits Actuary 

• Independent Expert for Part VII transfers and Part 26 Schemes of Arrangement

• skilled Person for Section 166 regulatory reviews

• Independent Actuary for complex business transformations

• Independent actuarial peer review services

The past ten years have seen a lot of mergers & acquisitions (M&A) activity in the life insurance sector, driven by low-interest rates, priority re-alignment, inefficient operating models for run-off portfolios and internal fund restructuring or mergers.

We support insurers in all aspects of back book management and M&A transactions.

How we help

Our services include:

• buy-side and sell-side actuarial due diligence

• deal model support

• market scanning

• strategic buy-side and sell-side advice

• post-acquisition harmonisation and integration

• development and implementation of back book management strategies

• advising on fund mergers or acting as Independent Actuary

We expect interest in UK market entry to remain strong, thanks to unprecedented demand for defined benefit pension scheme de-risking and solvency UK reforms aimed at reducing barriers to entry. 

We have helped potential new entrants to the UK insurance market through support with business cases, target operating model support, regulatory applications and production of financials.

How we help

Our services include:

• developing a business case 

• models and analysis for financials, including Solvency II balance sheet and projections

• pricing bases and processes

• support for internal model and matching adjustment applications

• advice on targeting operating model including organisational design