Financial Analysis Support System

Need

Speeding up, optimizing, and simplifying the calculation processes carried out in Excel, in order to provide insurance companies, pension funds, and health funds with the amount of interest (e.g.: cash flows generated by the policy portfolio) for the purpose of demonstrating their adherence to certain regulations and standards.

Solution

We have developed an actuarial application dedicated to performing asset and liability analysis jointly or disjointly, in a deterministic or stochastic environment. The analysis system provided, among other things, optimized the calculation process of the following variables:

• Asset Liability Management – Cash-Flow matching analysis; Duration matching analysis; Predictable Yield estimation
• Corporate finance – Traditional Embedded Value; European Embedded Value; Appraisal Value
• Solvency II – Best estimate liabilities; Risk margin; Solvency Capital Requirement
• Stress Test – EIOPA; ISVAP Regulation 20
• IFRS/IAS – Liability Adequacy Test; Impairment Test
• Local GAAP – Profit test; Additional reserves for guaranteed interest rate risk; Additional reserves for expenses

Benefits

The solution allows for the customization of calculation rules, the access of several users at the same tim,e and the sharing of all data related to portfolios and valuation hypotheses. It also allows the user an easy customization of his or her own tasks, adapting to individual needs, and allowing quick modification of the settings of a valuation through the use of various templates. The digital archive of the analyses carried out is always available and, thanks to the study of the interfaces, the user can carry out an evaluation following a simple and intuitive workflow.

Methodology/Technology

Web application; multithreaded computing engine.