Emerging Opportunities
We have experience in managing emerging opportunities in a commercial way, across complex environments. Examples are M&A activity, SAM and IFRS changes, as well as product development opportunities. We also provide support for managing problematic areas related to market risks and balance sheet matters.
Product Development and Review
Experience in with-profit, non-profit (covered) and non-covered product development. We can assist with incorporating specific balance sheet related aspects such as: funding, origination capability, capital efficiency, ALM, hedging, structured solutions, market pricing, basis selection. This allows for building products that are well suited to the balance sheet and business strategy. Notably, our integrated approach can help with building and structuring the product so that it has a strong business case to ensure the product delivers the required capital allocation metrics and business objectives (e.g. top vs bottom line). We also can assist with validation of the product's shareholder value, and review products for enhancements to optimise value.
Regulatory changes
Experience in managing capital across different, and changing regulatory regimes, often as a result of M&A or tax changes. Actions include integrating these evolving constraints into treasury and capital allocation functions, and restructuring of internal allocation of funds to optimise the balance sheet. Aspects such as fungibility, tax, and business strategy are factored in.
Accounting changes/IFRS17
We can assist with unpacking and pro-actively handling the balance sheet and product management (asset side and market risk) aspect of IFRS17. In particular, managing the market-related exposures of products which will be more visible, and handling investment and strategic aspects of the Contractual Services Margin, in the context of the balance sheet.
Product mix changes
Assistance with managing changes in the shape of the book, such as handling funding, investment and market exposures as a product matures, or new products and product types are added to the book. As with product development, we can assist with integrating these aspects into the broader business context from a balance sheet and capital allocation angle.
Shifting business focus
The business may shift its key strategic focus from time to time, such as top or bottom-line focus, or M&A growth. We can assist with the balance sheet aspects, from supporting product asset strategies linked to pricing and value, to treasury and integration of value metrics, as well as capital raising to support the capital requirements.
Analysis of problematic areas
Review deeply technical areas that have material impacts to unpack key issues and resolve with input from top level steer. The focus is on product management from an asset management, market-related factors, balance sheet or funding perspective only (and not underwriting or similar). We can also provide and independent view if necessary.
Line-2 Support
We can assist Line 2 with unpacking the risk areas emerging areas and specific changes, and help with evolving the risk frameworks to manage these. This can include specific items such as model validation and independent view of risks.
Practice Areas
Specialised actuarial consulting. Experienced in capital and value management, ALM, hedging and guarantees, financial modelling, investment strategy and creating commercially attractive solutions.
Workworth is a Level 4 BBBEE Contributor.