Liquidity & Funding
We provide proven solutions to optimise the use of liquidity across the insurance balance sheet. This unlocks internal synergies, such as reduced funding costs for new business strain, or higher yields on surplus liquidity
New Business Strain
Fund new business strain from cost efficient sources, including internal and external sources. This allows for optimal use of capital on the balance sheet.
Internal transactions
Increase profitability with internal transactions to to unlock cross-product synergies. We also provide assistance with desiging the product mix to create synergies.
Liquidity management framework
Liquidity management frameworks to ensure adequate risk and line-1 management. This gives a measure of how much liquidity there is..
Multiple Balance Sheets
Assistance with managing product funds in an optimal way under multiple balance sheets, notably: SAM, IFRS & Tax . See our Capital and Treasury practice area for related aspects to this.
Incentives & Accountability
Ensure fair accountability and aligned incentives in various business units through internal pricing mechanisms such as FTP (funds transfer pricing).
Structured solutions
Advanced structured solutions to enhanced the use of existing assets for funding purposes.
Hedging MtM
Manage the funding required for hedging solutions, notably the Mark-to-Market of hedges matching (illiquid) liabilities.
Collateral optimisation
Ensure efficient use of collateral for structured trades across the balance sheet. Typically includes integration across the organisation, including the investment professionals and balance sheet management team.
External Solutions
Cost-efficient solutions for external funding sources, and management and setting of total gearing ratios.
Liquidity optimisation
Ensure all excess liquidity is deployed adequately to deliver an enhanced return.
Line-2 Support
Support to build frameworks and analysis of funding and liquidity risks.
Product Development
Incorporate liquidity premium by way of vanilla or advanced structures in the product design to enhance product returns. Assistance developing products which target specific liquidity needs, or synergies that could be developed in the existing book.
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.