Description: A critical step in valuing a company for the purpose of financial reporting is the computation of the market value of economic surplus (MVES). This article provides a novel approach to the valuation of MVES that is stable and reasonably immune to “market noise.” Current approaches to the calculation of economic surplus of an insurance company generally define such surplus as the market value of the assets (MVA) supporting the liabilities less the market value of liabilities (MVL). While MVA is observable in the market, MVL is typically computed directly, without regard to the underlying supporting assets. Subtracting MVL from any value of assets that changes with market movements results in an unstable surplus. Consequently, a surplus that is not fully reflective of market sentiment has been rejected by many. This same approach is further used in the calculation of market consistent embedded value (MCEV) when a balance sheet approach is used .

Description: Economic Scenario Generator - Investment Section Web Series Session #1 - Fundamentals & Hot Topics This session will cover the following points: 1. Introduction: ESG Basics, What is Risk Neutral and Real World? 2. Interest Rate Modeling 3. Equity and Private Equity Modeling 4. Example use cases facing investment professionals and actuaries today

Description: This session explores where financial engineering is applied, who is “leading the charge,” and what are the current and future roles of actuaries. From the Record of the Society of Actuaries, Volume 27, No. 2, Session 55PD of the Toronto Spring Meeting.

Description: This panel of session 3PD of the Washington Annual Meeting discusses a range of topics which fall under a new professional label of financial engineer, and how this role relates to the role of the actuary. From the Record of the Society of Actuaries, Vol. 23, No. 3.

Description: This Chairperson's Corner article discusses the SOA becoming the pre-eminent risk management profession. The Chairman's message is that actuaries have the inside track on risk management positions in the insurance industry and have a basis for competing for similar positions in the broader financial services industry.

Description: The rapid and persistent rise in rates has increased many insurer's concerns around liquidity, disintermediation, and overall ALM risk management. Learn an overview of ALM, including the goals and reasons for performing it, common approaches, and real-world examples of common pit falls and mistakes that have been made in the industry. Explore the differences in approaches, and the pros and cons of these various approaches.Learn about the importance of understanding the ALM approach, with clearly defined strategic objectives. Additionally,discover an understanding of the value to both managing risk and optimizing enterprise value. Come away with a deep appreciation for the value that a well-constructed ALM program can bring to valuation/capital planning/asset adequacy testing/pricing (life and annuity).

Description: This session discussion is about deterioration in claims-paying ability, financial well-being of life insurance companies, benchmark surplus standards, key operation ratios, credit analysis of asset holdings, market view of stock companies, adequacy of capital in the industry, appropriate risk/reward posture in the industry, advice to management, outlook for the various business and views on surplus relief devices. From Record of the Society of Actuaries Vol. 15, No. 3A.

Description: "Hear AM Best rating analysts discuss the rating process and the best capital adequacy ratio (BCAR), a quantitative foundation for AM Best’s assessment of carriers’ financial strength. The benchmarking of BCAR scores for various company types (national MCOs, BCBS plans, smaller regional plans) will be discussed. Look at how changes in investment and underwriting environment impacted the results over the past several years. Further, AM Best’s view of the quality of capital and various factors impacting the overall assessment of the balance sheet strength will be discussed. By attending this session, you will: Gain an understanding of AM Best’s building block approach to ratings and how the BCAR results fit into the process. Learn the differences between RBC and BCAR models. Learn how various factors—e.g. liquidity, financial flexibility, financial leverage, the org structure—impact the final AM Best assessment of health companies' capital."

Description: Where once an insurer's chief investment officer (CIO) reigned supreme over assets-aided and sometimes hindered by the involvement of a chief risk officer (CRO)-these days managing portfolio risk and return seems to be an altogether more complex affair. No less of this complexity has come from the expansion by insurers into illiquid assets in the last decade. Moving away from traditional assets has raised scrutiny of liquidity risk management, but how do insurers tackle this? In a world 'brimming with large and growing portfolio allocations to illiquid private assets,' liquidity management concerns are distinct from a typical CRO's portfolio or asset risk orientation. There's a need to look at all aspects of a fund's liquidity demands and sources, such as top-down asset allocation, bottom-up private market deal-making activities, and internal and external operations. A dedicated liquidity management function should also be able to identify both explicit and potential liquidity demands and sources and, in particular, stay in touch with market movements and the regulatory environment. It should identify, evaluate and keep at-the-ready possible external liquidity facilities-for example, the secondary market for private equity stakes, a collateralized portfolio liquidity line, a repurchase agreement or a futures program. A high-quality liquidity management team can also identify when a fund has too much liquidity, the cost of being overly cautious and how to put excess liquidity to work.

Description: Reunite with members and non-members in the China actuarial community to discuss recent topics and related issues in areas such as macroeconomic sharing, IFRS 17, product strategy, cross-border communication and discussion, and more. Advance your career through learning and networking opportunities, and share your experiences in the finance and insurance industries, as well as other fields related to actuarial science.