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Meet growing needs for innovative insurance solutions while increasing operational health and improving compliance.
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Data-driven insight. Deep expertise. Transformative innovation. Since 1947, Milliman has delivered intelligent solutions to improve health and financial security.
Asset/Liability Modeling & LDI
The best ALM studies are developed using sound processes. We employ time-tested systems and methods at each step in our studies. These processes are bolstered by a rigorous review of the results. The resulting analysis provides our clients with a clear understanding of how their plans function under many different economic conditions and the confidence to know that the results were determined in a logical, proven manner.
Our analysis will be tailored to our clients' specific circumstances, liability characteristics, and financial objectives. It will provide an understanding of the tradeoffs between minimizing the volatility of contributions and maximizing returns to reduce the long-term cost of the plan. We employ a risk-budgeting framework that will help our clients identify the appropriate level of risk and the optimal allocation of risks to be taken.
Some of the key metrics used to quantify financial risks when determining the optimal investment policy for a corporate pension plan are as follows:
A summary diagram of our asset-liability modeling process is shown below.
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