Milliman's financial risk management team has developed substantial expertise in portfolio valuations. Our experts gauge not only a portfolio's value in the current environment, but its potential future value as interest rates, credit spreads, default probabilities, and other market factors change.

Employing sophisticated Monte Carlo analysis, our consultants are able to value or simulate price performance for highly structured, securitized investments. Our figures allow clients to perform required cash-flow testing, as well as the economic projections they might need to assess likely performance or to calculate capital reserves.

We've assisted numerous clients on embedded value calculations of complex assets, involving tens of thousands of simulations for thousands of discrete investments. Clients rely upon the resulting figures and risk measures for their financial reporting and to fulfill regulatory requirements.

Increasingly, complex investment vehicles can't be valued by traditionally available software. Milliman's expertise and advanced technology fill this gap.

Our consultants excel in valuing a broad range of investments with option- or path-dependent characteristics, including:

• derivatives—in markets including equity, interest-rate, foreign-exchange and credit, or hybrids thereof
• callable bonds
• mortgages
• structured debt
• alternative assets such as hedge funds or REITs
• mortality bonds

Sharper focus on value

Clients with crude valuation models often come to Milliman seeking a more precise analysis of how their portfolios' values are changing over time. Our methods yield a more accurate picture and assist clients in better managing their portfolio risks.