Actuarial Partners has been active in conventional insurance consulting since 1977 from pricing to valuation roles, feasibility studies to M&As.
We have been the Appointed or Signing Actuary for companies in Malaysia, Singapore, Brunei and the Middle East. Aside from the statutory role, we are also involved, among others, in the due diligence of merger & acquisition exercises (appraisal valuations), pricing and product development of Malaysia national products, in the development of Malaysia’s mortality tables, and have led research into Long Term Care (“LTC”) and the protection gap.
- Company operating structure
- Product range/operations
- Selection of administration arrangements
- Necessary capital levels
- Financial modeling and projections
- Investment policy
- Fulfilment of regulatory requirements
- Assistance in the establishment of the IT system
- Financial investigation and actuarial valuation
- Potential sellers/purchasers identification and evaluation
- Brokering negotiations between parties
- Due diligence on financial as well as strategic and operational aspects
- Identifying synergies
- Company restructuring prior to and after the sale
- Independent opinion to regulators
- Identification of the factors affecting the deal price, with a view to maximising the value from the seller's point of view or assessing potential risks from the buyer's point of view
- Relevant industry benchmark
- Developing industry surveys to ascertain industry standards and the reinsurer’s position
- Analyzing the reasons for the insurer’s position in the industry
- Company profitability projections, both for the company as a whole under various scenarios as well as by business subsets.
- It is also used to determine the appropriateness of existing, new or proposed products
- Capital requirements projections under various scenarios. This can be used in assessing the cost of capital in order to give assurance to participants and maximize the return on capital to the operator.
Asset and Liability Modelling (ALM)
- Project invested assets and policy liability cash flows using deterministic or stochastic modeling. Projections are performed using different economic scenarios, risk level of assets, new business written and level of capital requirement. They are used to understand and quantify the level of investment risks due to mismatching between assets and liabilities.
- This analysis can also be used to assess the impact of falling sukuk (Islamic bonds) yields and volatile equity markets on benefits to the participant as well as managing investment risks by product redesign.
Premium < Tariff
Premium > Tariff
- Identification and research of the target market
- Policy design and pricing with sensitivity testing
- Competitive analysis
- Business plan projection
- Asset share and cash flow analysis
- Policy illustration
- Management of risk including the use of reinsurance and other financial instruments
- Analysis of capital required
- Measurement of return to policyholders and shareholders
- Analysis of existing experience for mortality, lapsation, investment and expenses