Milliman FRM Services
Investment management and actuarial consulting services to life insurers and financial institutions
Life & annuity risk management
Milliman FRM offers an end-to-end annuity risk management solution. We start with each client’s seriatim inforce data, calculate liability risk exposures, execute derivatives transactions and provide performance attribution.
Universe of products
Expertise spans a range of products, including variable annuities, fixed indexed annuities, registered index linked annuities, as well as variable and indexed universal life.
Hedge strategies
Extensive experience designing and implementing strategies, ranging from daily intensive dynamic hedging strategies to fully static strategies, and hybrids of the two.
Risk management objectives
Strategies developed are built to account for key economic, GAAP, and statutory frameworks.
Considerations for LIBOR transition and U.S. Variable Annuity Guarantee Valuations
This paper discusses risk-free curve selection and setting of the discounting spread (over the risk-free rate) for variable annuity fair valuation.
Variable Annuity Guarantee Hedging maintains its effectiveness during COVID-19 market turmoil
This paper examines the hedge effectiveness of a wide range of Variable Annuity carriers.
Women and retirement
Women face unique obstacles in securing the necessary roadmap for retirement.
Hedging programs save insurers 40 billion during economic crisis
During the volatile months of September and October, the hedging programs developed to protect variable annuities (VAs) with guarantees were, based on an internal study, 93% effective, saving an estimated $40 billion in industry wide assets for the insurance companies
A closer look at volatility control funds and their place in the financial market ecosystem
Market observers have posited in recent years that Volatility Control funds represent a focal point of instability for financial markets.
Variable Annuity Guarantee Hedging maintains its effectiveness
This paper examines the hedge effectiveness of a wide range of Variable Annuity carriers.
Is it ever safe to downgrade a risk management strategy?
Behavioral finance lessons apply now more than ever as markets continue to climb and risk appetite increases by investors and institutions.
Milliman Derivatives Survey 2017
This report summarizes key findings from the 2017 update to Milliman’s survey of derivative usage by the global insurance industry.
The risk tolerance paradox
Reconciling the difference in investor risk tolerance between long- and short-term investments.
Variable annuity hedging: Effect on the value of a company
This article attempts to illustrate that hedging variable annuity guarantees can smooth company earnings.
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