Insurers increasingly feel the need to consider their strategic policy, risks, objectives and constraints in an integral way. This is primarily instigated by recent developments in the field of reporting and governance (in particular IFRS and Solvency II). But growing competition between insurers and the rapidly-changing economic circumstances also call for the adoption of a wide-ranging and comprehensive policy.

ALM for life insurance companies

Asset Liability Management (ALM) is a proven method to balance the long-term liabilities with the invested capital, thereby taking into account the macro-economic developments and national and international legislation and regulation. Ortec Finance has developed an Asset & Liability Scenario model that is tailor-made for life insurers. ALS Life serves as the foundation for the professional advice of our ALM consultants, and we also offer this software through user licenses. Using this advanced model, insurers can answer questions such as:

• What is the optimal investment and interest rate policy?
• How can we refine the strategic asset mix and construct an actual asset portfolio?
• What is the impact of various reporting systems on the balance sheet and profit and loss account?
• What kind of influence does the size and nature of new production have on the existing policy?
• What are the consequences of the Solvency II guidelines?

In addition to ALM studies, insurance companies use ALS Life for specific calculations related to Risk-based Capital (RBC), Market-Consistent Embedded Value (MCEV) and Solvency II. Furthermore, in the fields of accounting and product development currently great emphasis is placed on the market valuation of liabilities. Such market-consistent valuations can also be carried out successfully with ALS Life.

ALM for non-life insurance companies

ALS Non-Life is our tailor-made ALM model for non-life insurance companies. It has been developed in particular for property and casualty and disability insurers. Just like life insurance companies, they look for answers to questions concerning optimal investment policies, impact of reporting systems on the balance sheets and profit and loss accounts, and the consequences of Solvency II. In addition, non-life insurers also focus on the integral impact of the reinsurance policy and the investment policy on important risk-return measures.

Ortec Finance also provides Asset Liability Management solutions for Pension Funds and Financial Planners.