Capital management


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We are experts at assessing capital requirements under a multitude of frameworks both Australian and international in nature. Our risk management expertise uniquely positions us to provide advice on strategies to manage capital. Our Daily Solvency Monitoring (DSM) system is a unique, complete end-to-end solution that enables our clients to value their entire balance sheets, assess their risk exposures, and calculate available and required capital on a daily basis. This is proving to be a key requirement for our clients to tangibly demonstrate that they are solvent at all times and that their risk management processes are actively used to manage the business, which are key requirements of modern regulatory capital frameworks.

As best practices evolve in this rapidly changing field, Milliman remains a valued source of insight on methods for managing risk and capital.

The rise of more complex products has brought more risk to the industry and a greater need to protect insurers from such risks. Milliman offers expertise with new measurement tools that provide more precise assessment of available and required economic capital. We are experienced in making the economic capital calculations needed to conform to the requirements of new regulatory frameworks such as those being introduced in Australia by APRA, and Solvency II by CEIOPS in Europe.

We advise on a wide range of capital management services, including reinsurance, asset liability modelling, M&A, securitisation, and hedging.

We have our own industry-leading tools for capital assessment that are built and used by our consultants to create sophisticated capital models designed for each individual client. This includes:

  • MG-ALFA®: A globally leading financial modelling platform with cloud computing capabilities
  • MG-Hedge®: A globally leading system for valuation, risk, and capital including nested stochastic capabilities
  • DSM: A system for the daily monitoring of the balance sheet, risk exposures, and capital requirements

Next Steps

For more information, contact: