Our actuaries and consultants combine a comprehensive understanding of business management issues with insight into your most complex challenges. We offer the insurance and financial industry’s latest products, and know how to manage myriad risk factors in the face of emerging laws and standards.
Used by top insurance and financial firms worldwide, our software tools reflect the latest thinking in hedging, product pricing and projection, and accurate reserving. Moreover, Milliman software offers a balance of secure control and flexibility, bolstered by frequent updates.
This report explores several aspects of universal life products with long-term secondary guarantees from a pricing and financial reporting perspective and covers a variety of topics, including:
- The relationship of internal rate of return (IRR) to return on equity (ROE)
- The American Institute of Certified Public Accountants (AICPA) Statement of Position (SOP) 03-1
- Stochastic projections
- Sources of profit
- Cost of the secondary guarantee
- C3 Phase III
As a global market leader in the fields of product development, risk management, and outsourced hedging support services, Milliman provides consulting and outsourced services to clients that lead the market and define global best practices. Milliman has assisted companies with hundreds of product development initiatives, including numerous high-profile launches in new markets and market segments.
More than 30 major financial institutions around the world trust Milliman to manage risk in their portfolios. We currently value and hedge more than six million investor accounts every day, relating to guarantees on assets worth more than US$500 billion. Our economies of scale enable us to deliver industry best practices at low operational risk, enabling efficient dynamic replication strategies at the minimum cost.
