Our team provides derivatives execution, operations support, and performance attribution to clients.

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Hedging


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Worldwide, Milliman manages one of the largest derivatives positions in the insurance industry. Our Australian team brings expertise from other markets around the globe and offers insight tailored to the specific needs of local firms. Our local practice members worked on some of the first forays into hedging undertaken by Australian wealth managers, so we stand at the forefront of emerging industry practices.

Our hedging team has a wide range of complementary backgrounds including trading, quantitative finance, risk management, technology, and actuarial practice. This group offers expertise on par with any leading capital markets firm. Our independence ensures that clients benefit from international best practices and transparancy when assessing the cost and performance of alternative risk management strategies.

As we work each day in the derivatives markets, we gain insight and sharpen our skills, offering services such as reinsurance administration, derivatives execution, operations support, and performance attribution. Our innovative MG-Hedge® software enables product design and execution employing the most advanced hedging theory and techniques.

Hands-on risk management

We have supported some of the largest and most complex hedging programs in the industry, utilising dynamic, static, or semi-static approaches. Armed with our expertise, many Milliman clients have rapidly launched sophisticated new products, confident in their ability to successfully manage the inherent risk. Milliman has also taken over responsibility for major hedging programs to manage turnaround efforts and provide economies of scale to clients.

In addition, we specialise in the administration of risk transfer to third parties, providing a convenient service that relieves organisations of the task of managing multiple relationships and ensures the transparent and independent review of such arrangements.

Performance analysis to optimise effectiveness

Providing an essential counterpart to our hedging services, we offer sophisticated performance analysis into the effectiveness of hedging programs. Our detailed, customised reports identify potential issues and provide specific recommendations for improvement.

We can provide reports on an annual, quarterly, monthly or daily basis to company traders, risk managers, or senior management. Milliman excels at creating simplified reports that allow management to easily understand how market events are affecting their hedging program's performance.