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Capital Management

Insurers are increasingly recognizing how strategic capital management can be used to enhance business performance. Astute management of capital can, through maximizing regulatory and tax efficiency, enable a company to become more competitive and flexible.

The tools used to implement these strategies include changes to corporate structures, establishing new entities in appropriate jurisdictions and intra-group and external reinsurance deals. But, to identify key areas of capital allocation and volatility, and guide strategic choices about capital, it’s vital that reliable and relevant “what if” management information is available in a timely manner.

You need to be able to quantify the impact of given capital management actions across a range of metrics. The modeling of the financial impact of capital management actions is often limited to a subset of the financial metrics used to manage the business, and the impact on capital requirements can be overly simplified.

We support clients with our capital modeling consulting advice, software and product offerings, including:

  • Advising on the capital requirements of different regulatory regimes
  • Working with companies to use their internal enterprise risk management processes to assess appropriate levels of capital to maintain in each business, taking account of business plans and market environments
  • Identifying opportunities for maximizing the diversification benefits of pooling risks
  • Assisting with the implementation of the necessary governance processes
  • Supporting the execution of external and internal transactions
  • Implementing our market-leading modeling software, which enables companies to quickly see how decisions might impact the risk and performance of their business
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