Asset and Liability Matching

This is a dynamic forward-looking risk management application. For each Pension Fund, it makes use of a specific parametrization of the benefits, so that risk managers can concentrate on what really matters and test whatever scenarios they think necessary. Includes the Portuguese public schemes and some private schemes from Insurance and Banking.

alm1Even for large populations with complex pension benefits, it will be possible to have a full insight of the expected behavior on the long term, for liabilities and assets.

Using a desktop application, offers a very easy way for testing strategies to finance and manage assets in order to comply with regulatory and company policies. Controlling, this way, the total balance sheet management risk.

follows an approach of “everything counts”, so that the risk manager, after collaborating in the parameterization, can fully understand what liabilities are being valuated and how they are being valuated. Each person, liability or burning cost can be isolated and analyzed.

Ease of Use:
With a Desktop Application, to test the most demanding scenarios is just to choose the right assumptions. You can easily export results to the usual office applications as spreadsheets.

Fast Valuations:alm2 Making use of a specific IT infrastructure, even for very large populations and complex pension schemes, all scenarios will be valuated in a very fast way, allowing the risk managers to test all scenarios, without time concerns. Since frequently the size of the populations is a concern, when necessary, the populations are partitioned into smaller ones, following a divide and conquer algorithm.

The mathematical calculations involved are supported by a computational cluster easily upgraded. The hardware is criteriously chosen and adapted so as to achieve maximum efficiency of the algorithms. On top of this physical optimization, there is a logical optimization with memory management and quickness of the valuations as primary goal.
We use optimization algorithms for accessing and storing data in an efficient and rational way.

Drag and drop support, context menus, usability heuristics and many other features are used to produce a natural interaction. Population’s management is a tree-based familiar interface, visualization of the results is also very dynamic, and it’s almost instantaneous to change the parameters and start a new simulation.

Always a Taylor Made Solution :

Being prepared specifically for each Pensions Fund, the specificity and flexibility will allow the definitions of whatever views each risk manager define as more important, as well as, the report format. So, the graphics displayed have the information that really matters to the risk manager, allowing to survey every detail.

A more detailed view or the access to the results in spreadsheet format, with the possibility to export the results to Excel, are just a click away. 


Analysis for Regulatory Compliance:

Allows risk managers to test all scenarios specific for regulatory compliance and produce reports accordingly.

Solvency Analisys:

In an integrated way, the risk manager or actuary can analyze the liabilities, assets and solvency. In each meaningful analysis the manager will have not only the expected value but also the risk associated, in this manner, easily evaluating the importance of each of the variables for the total risk.

allows for deterministic and stochastic analysis, helping the risk manager to concentrate on what are the real important factors to monitor, either on the short-term or on the long-term view.

Allows the projection of longevity or other contingencies, using prospective or dynamic tables. In this way producing a more realistic measure of the Pensions Fund liabilities.