Description: The article introduces a cashflow matching strategic asset allocation (SAA) framework for life insurers. Given the recent shift to higher interest rates after two decades of persistent low interest rates, insurers have an opportunity to enhance their asset liability management by rebalancing asset portfolios to narrow duration gaps and attain higher risk-adjusted yields. The framework aims to align investment objectives with economic, regulatory, and rating agency requirements. It prioritizes cashflow matching as the primary optimization goal and incorporates security-level asset information to assist portfolio managers in executing SAA seamlessly. The article highlights the benefits of the cashflow matching SAA framework, including greater attention to cashflow matching, unbiased results, readily executable strategies, and stable economic reserves. A case study is included to demonstrate the effectiveness of the framework in improving risk-adjusted return and cashflow matching for a representative liability block.

Description: The author discusses how the use of a weighted average dollar duration book yield, WADD, rather than the more traditional book yield determined by book value or market value weighting, can provide a better basis for determining the crediting rate on the liabilities.

Description: This article provides an update on the development of model regulations for synthetic GICs and guaranteed separate account products.

Description: What The Markets Should Reflect From The Victory In Iraq - A Candian’s Perspective

Description: 1999 Market Triathlon Results by Frank M. Grossman from Risks and Rewards Newsletter, September 2000, Issue No. 35.

Description: “Many commentators have suggested that firms need to do stress tests to examine their vulnerability to adverse situations that are not within the data set used to parameterize their risk models. We suggest the adop¬tion of a terminology to describe stress tests and also a meth¬odology that can be adopted by any risk model user to test and communicate a test of the stability of model results.”

Description: Feature article discussing arithmetic means.

Description: The August 2013 issue of Risks & Rewards newsletter—a member benefit for the Investment Section of the Society of Actuaries.

Description: Update to section members on recent initiatives: professional development tool EBSCO Business Source Corporate Plus; Investment Symposium; Investment Contest.

Description: 2013 Investment Contest challenges section members to assemble an asset portfolio which will prevail in one of three risk/return metrics.