Guide to raising capital with Mutual Capital Instruments & Co-operative Capital Units
In this paper, Finity's Jon Tindall and Sen Nagarajan discuss:How an Australian Prudential Regul...
Capital management
Sophisticated, risk-based, decision-making frameworks and strategies for managing drivers of variability in financial performance.
Capital modelling & capital management
We take a holistic approach to analysing and modelling the key risks and financial drivers of insurer performance and capital needs (such as premium, claims, catastrophic events, investments, and operational risks).
Sophisticated advice on key drivers
Our capital modelling expertise allows you to deeply understand risk profile, profit volatility, capital needs and financial management strategies open to you.
Our models are sophisticated, yet flexible to simulate the financial performance of a company. Our deep expertise brings a wide range of advice tailored for an ever changing climate.
Used to assist or review your own internal capital models for governance and improvements.
Our capital management expertise supports...
Capital management framework (including ICAAP)
Risk appetite
Risk measures and risk informed performance benchmarks
Dividend strategies
Capital structure
Asset return & economic modelling
Our proprietary asset model simulates asset returns for a variety of different asset classes, as well as simulating economic variables such as discount rates and inflation rates. They underpin our internal capital models and are used to analyse general economic linkages to insurance variables, for example between unemployment rates and claim frequencies. Such analyses feed into pricing and reserving decisions for products such as lenders mortgage insurance and Workers Compensation.
Investment strategy
Our detailed modelling of financial risks informs strategic advice for insurers wishing to use asset mix to adjust their risk profile. Using models of asset return volatility we are able to determine the impact of asset mix on the risk profile and profitability of the company and to assess optimal asset mixes that improve capital efficiency.
Meet the experts
Scott Collings
Principal & Managing DirectorScott Collings
Principal & Managing DirectorPh +61 2 8252 3378
Mob: +61 418 451 425
LinkedIn: https://www.linkedin.com/in/scott-collings-0b88359b/
Qualifications
BE (Hons), FIAA
Scott is a Principal and the Managing Director of Finity Consulting with over 30 years of experience in general insurance. He is a consulting actuary specialising in the financial and strategic management of General Insurance companies and Accident Compensation Schemes. Scott has been responsible for delivering actuarial advice across the spectrum of general insurance products with particular emphasis on reserving, pricing and capital management advice. His key focus areas include Appointed Actuary roles and leadership of Finity's Capital and Risk Management practice.
Areas of Expertise
- Financial management of general insurance businesses
- Appointed Actuary – reserving and financial condition reporting
- Capital management and internal capital models
- Capital allocation and portfolio performance monitoring
- Business plan development
- Investment strategy
- Reinsurance program design
- Product expertise in Lenders Mortgage Insurance, Public Liability, CTP, Commercial Motor, Medical Indemnity, SME Business Packages, Builders Warranty, Retail Warranty and Multi-Peril Crop Insurance
Talk to me about
- Capital & risk
- Internal capital models
- Asset return & economic modelling
- Reinsurance strategy
- Capital allocation
- Investment strategy
- Enterprise Risk Management
Francis Beens
PrincipalFrancis Beens
PrincipalPh +61 2 8252 3388
Mobile +61 434 105 192
LinkedIn: https://www.linkedin.com/in/francis-beens-a6a5193b/
Qualifications
BActStud, LLB, FIAA
Francis is a Principal at Finity with 15 years’ experience in general insurance, specialising in financial analysis, reporting, capital, and risk for insurers. He holds a double degree in actuarial studies degree and law. He is also Finity’s IFRS 17 (the new insurance accounting standard) expert. Francis’ law degree has proved to be a valuable asset to Finity. In addition to quickly grasping technical legislative issues, he also understands how the legal environment plays out in general and health liability claims costs over time.
Areas of Expertise
- Volatility and Capital Management
- Financial Projections and Budgeting
- IFRS 17
- Appointed Actuary
- Workers Compensation
- CTP
Talk to me about
- Financial forecasting
David McNab
PrincipalDavid McNab
PrincipalPh +61 3 8080 0903
Mobile +61 402 064 630
LinkedIn: https://www.linkedin.com/in/david-mcnab-05727528/
Qualifications
BComm (ActSt), FIAA
David is a Principal at Finity. He is an Actuary and has 25 years’ experience consulting in General Insurance, specialising in Appointed Actuary roles, capital, risk and volatility management for long tail classes of insurance, including latent liabilities such as asbestos. He is currently the Appointed Actuary for three insurers and the primary advisor to six organisations in relation to their asbestos liabilities. David previously jointly led Finity’s team working with the National Asbestos Safety and Eradication Agency in development of a projection model for Australia wide mesothelioma and particularly, third wave exposures.
Areas of Expertise
- Volatility and Capital Management
- Medical Indemnity
- Health analytics
- Asbestos
- Workers Compensation
- Appointed Actuary
Talk to me about
- Capital Management
- Asbestos liability reserving
- Appointed Actuary roles
Reinsurance strategy
Our internal capital models capture all the nuances of reinsurance programs and their impact on risk and capital needs. Optimise reinsurance arrangements and maximise the efficiency of capital use.
- Treaty analysis
- Analysis of reinsurance treaties impact on the risk profile and profitability of the business
- Internal pricing and cost allocation
- Optimal program design and reviews (with respect to cost and protection provided, using risk and return measures as the decision variables)
- Determine the contribution to profit volatility of each business unit and how to equitability allocate the cost of reinsurance among business units.
Capital allocation
Allocation of capital to specific sub-divisions of an insurer’s business enables the setting of profit targets at a group, company and product level in a manner consistent with overall return on capital targets. This process allows targets for return on capital to properly reflect the risk profile of the products or business concerned, and allows clients to:
- understand the impact of the mix of products on the risk profile and profitability
- identify the sources and value of diversification with the company.
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