Economic Balance Sheet Seminar

December 7, 2017
Chicago Marriott O’Hare
Chicago, IL


Technical Skills & Analytical Problem Solving


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Economic measurement-the key to really understanding risk and reward.

There has been an increasing interest and need for economic metrics in life insurance companies. The growing sophistication of enterprise risk management (ERM) programs and global regulatory requirements have resulted in most life insurance companies implementing some form of economic capital to measure risk. Actuaries with the skills to design, build and communicate economic results are in high demand.

While these economic measurements come in different variations, such as International Financial Reporting Standards (IFRS), U.S. generally accepted accounting principles (USGAAP), Market Consistent Embedded Value (MCEV), Solvency II and internal view, the basic principles are identical. Experts at this seminar will explore these basic concepts, while incorporating theoretical concepts and a practical hands-on Excel worksheet. Participants will practice what they have learned about economic measurement to develop components used in balance sheets. They can then implement this knowledge of economic metrics upon returning to their respective companies.

Presenters will review the concepts of economic value and capital, along with the main existing accounting frameworks and their building blocks. They will use spreadsheet examples for both term-life and deferred-annuity blocks of business to apply the concepts learned, while analyzing the impact of assumption changes to the economic values of assets and liabilities. Various methods for determining economic capital, including approaches to analyzing risk distributions and considering correlations across risks, will also be addressed. This seminar will conclude with an experiential spreadsheet application, as well as a mock communication of results to executive leadership.

Prior to the in-person seminar, attendees will be asked to attend a 90-minute pre-seminar webcast on Dec. 4 at 12:00 p.m. ET to better prepare them for the concepts that will be covered.

Educational Objectives

After completing this seminar, attendees will have a deeper knowledge and understanding of the current and emerging topics and issues in economic measurement.

Who Should Participate

Early to mid-career actuaries who are interested in or in line for economic balance sheet and/or economic capital calculations.

Level of Difficulty

The seminar is designed for participants with low to moderate level experience .