Solvency II presents a number of options in respect of capital management, including internal models and partial internal models, Volatility Adjustment, Matching Adjustment, use of ancillary capital, Own Funds restructuring, management actions, the Loss-Absorbing Capacity of Deferred Taxes, and USPs.

An effective market risk and credit risk hedging program is critical from a standpoint of both solvency and earnings stability for (re)insurers, and for managing counterparty exposures. Hedging strategies can also be implemented to manage lapse, longevity, mortality, and morbidity risk.

Reinsurance remains a key capital management tool for (re)insurers to find ways to manage risks and the related capital requirements, and to optimise solvency balance sheets. We can help identify, structure and model an effective reinsurance arrangement.

An independent review of investment strategies, utilising techniques such as asset-liability matching and risk-return optimisation, can help improve efficiency with your capital management strategy, while preserving sufficient liquidity.

The potential capital benefits arising from under-funding of unit-linked liabilities represent a significant opportunity for many life insurers, which may lead to lower capital requirements, and greater stability of the Solvency II balance sheet

We have experience implementing innovative capital management solutions for clients, such as: embedded value in-force securitisations and monetisation, overcoming contract boundary constraints, and structuring of contingent capital.