Volatility and Capital Management

Our services

Dynamic financial analysis
Stochastic asset return modelling
Capital allocation
Investment strategy
Reinsurance strategy
Risk margins
Financial forecasting for business plans and budgeting

We can:

Work with you to develop risk measures that are relevant and that can be used as decision making benchmarks.
Establish a risk based framework tailored to your specific business that can be used to measure your current and ongoing capital needs.
Develop a risk sensitive methodology for allocating capital to product lines, and for setting performance benchmarks that are consistent with company level return on capital targets
Provide advice on how to set your investment strategy in a way that is consistent with your profit volatility and capital targets
Design reinsurance strategies for optimal capital efficiency
Provide financial models to enhance business planning and budget processes.

Finity regularly works with clients who want to understand and develop strategies for managing the drivers of variability in their financial performance. We do this by:

Developing sophisticated stochastic models which enable us to simulate the financial performance of your company
Working with you to define risk measures that are relevant and can be used within your decision-making framework
Using models to devise and test alternative strategies for managing risk profile and optimising performance.

We have helped develop sophisticated risk-based decision-making frameworks for general insurers of all sizes, from small run-off reinsurers to very large financial services conglomerates and major government-run accident compensation schemes. This illustrates the flexibility of our modelling approach, which uses a range of specialised software tools we have developed in-house.