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Income Generation

Enabling Growth


Strategic & Tactical Asset Allocation

Optimized to regulatory requirements (e.g., RBC), varying earnings measures (e.g., SAP or GAAP)
Liability-driven, differentiated across core and surplus, and aligned with the market cycle
Managed to ESG, climate and emerging risk (pandemic, cyber, supply chain,…) factors
Economic scenario playbooks for opportunistic investments
Guidance on performance metrics, business use and best practice

Emerging Investment Vehicles & Interplay with Industry Trends

Greenwashing and assessing ESG, Climate & DE&I aware investments
Crypto, NFTs and DeFi
Captive and third party offshore and domestic reinsurance
Structured assets (liability, regulatory capital and accounting aware)
Interplay with demographic trends, policy innovation and Insurtech

Synthetic Asset Replication Strategies

Efficient use of Treasury and Agency holdings needed for liquidity and counterparty requirements
Structure synthetic credit exposure using Treasury and Agency holdings along with Credit Derivatives
Appropriately designed to be treated as a bond by SVO, with associated RBC C1 factor
Counterparty risk and program size treated through derivatives use plan
Limited need for private rating if referenced credit is publicly rated or traded security

Hedge Accounting

Qualified/non-qualified hedge tests for losses recognition and tax treatment
Income impact assessment, with qualified hedges having more favorable tax treatment and flowing through balance sheet (typically as "Other Invested Assets") while gains/losses from non-qualified hedges flow through income (typically as "Other Comprehensive Income")

Managing Collateral and Derivatives Book

Efficient use of collateral
Incremental Independent Amount funding, adverse ATE triggers, and counterparty mitigation strategies 
Efficient collateral use, Credit Support Annex (CSA) and Additional Termination Event (ATE) terms
SIMM modeling for initial margin

Capital Markets Programs

Risk appetite frameworks facilitating prudent growth of securities lending and term repos programs

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