Asset Liability Management for Insurance Industry

The programme

Programme overview

Ratomac Asset Liability Management for Insurance Industry programme has been designed to discuss concepts and case studies on Asset Liability Management (ALM) for the insurance industry. The course covers ALM concepts such as cash flows and risks of insurance products (assets and liabilities), applicable regulatory and capital guidelines, case studies, and current trends and developments. The workshop is both conceptually sound

This course delivers both conceptual grounding and hands-on, practical application throughout.

Who should attend

Who is this programme for?

• ALCO Members
• Asset Liability Managers
• Liquidity Managers
• Non-Executive Directors
• Audit Committee and Risk Committee Members
• Chief Risk Officers of Insurance Companies and Asset Management Companies
• Treasurers and Treasury Management
• Chief Financial Officers
• Finance Managers and Financial Controllers
• Management Accountants and Treasury Analysts
• Financial Accountants
• Insurance Industry Regulators
• Pension Fund Managers
• Investment Professionals
• Budgeting and Planning Executives

Learning outcomes

What you will learn

• Benchmark your institution by examining ALM success factors
• Understand key performance indicators for ALM and Risk Management
• Gain practical insights into how leading institutions are utilising ALM for value creation
• Examine how cash flows and risks of insurance products affect ALM, including the impact of IFRS 17
• Discuss global and South African best practices in ALM, including SAM (Solvency Assessment and Management)
• Provide optimal oversight of the Risk Management function

Explore the programme

Detailed programme outline

• Key terms; ALM defined
• Benefits and limitations of ALM
• On and off-balance sheet risks
• Introduction to insurance regulation, and regulatory measures
• Capital regulation and future advances
• Solvency II requirements (EU framework)
• South Africa's Solvency Assessment and Management (SAM) framework — broadly aligned with, but not identical to, Solvency II and IFRS 17
• Asset portfolio and liability portfolio
• Balance sheet optimisation and ratios
• Pillar I: ALM Organisation
• Pillar II: ALM Management Process and Measurement Tools
• Pillar III: ALM Information Systems
• Level of top management involvement
• Governance structures and decision-making (Asset-Liability Management Committee, ALCO)
• ALM role-players
• Link between ALM and Enterprise Risk Management
• Link between ALM and Capital Management
• The ALM process
• Measurement tools: yield curve analysis, interest gap analysis, simulation and scenario analysis, duration analysis, and other tools
• Management information systems, data quality, and reporting
• Hedged items and hedging instruments under IFRS 9, General Hedge Accounting — the current operative standard, which replaced IAS 39 for most entities
• Background: the previous IAS 39 approach, retained here for historical context and legacy comparisons
• Cash flow hedges and fair value hedges
• Hedges of a net investment in a foreign operation
• New hedge accounting model and changes from the IAS 39 approach
• Risk management objective and hedge strategy
• Hedge effectiveness requirements
• Hedge ratio: measurement, adjustments, rebalancing
• Discontinuance of hedge accounting
• Effective 1 January 2023, replacing IFRS 4 as the primary accounting standard for insurance contracts — a fundamental change directly affecting ALM practices, risk exposure, capital requirements, and strategic capital planning
• The General Measurement Model, Premium Allocation Approach, and Variable Fee Approach
• Contract boundaries and their impact on measurement of insurance liabilities, capital, and solvency
• Discount rate determination and its interaction with Solvency II/SAM and existing embedded value reporting
• Interaction between IFRS 17 and South Africa's SAM framework
• Classification of financial instruments
• Treatment of financial assets, including equity instruments
• Treatment of financial liabilities
• Control, power, variable returns
• Substantive and protective rights
• Reviewing shareholders' agreements and identifying salient points
• De facto control: dispersion of shareholdings
• Decision makers: principal or agent?
• Definition of Investment Entity: the three requirements
• Business purpose and exit strategy
• Investment entities as subsidiaries and parents
• Amendments to IFRS 10, IFRS 12, and IAS 28: investment entities and consolidation exception
• Joint arrangements: joint ventures or joint operations
• Consideration of separate vehicles
• Joint control and the link with IFRS 10
• Accounting for joint ventures: equity accounting
• IAS 28 revised: equity accounting
• Accounting for joint operations
• Equity method in separate financial statements: IAS 27 amendment
• IFRS 14, Regulatory Deferral Accounts
• IAS 16 & IAS 38: depreciation and amortisation
• IAS 19: discount rate and regional market issues, and treatment of employee contributions
• IFRS 3 and IAS 40: businesses and investment properties
• IAS 24: related party disclosures, key management personnel service
• IAS 34, Interim Financial Reporting: disclosure
• IAS 36: recoverable amount disclosures
• IAS 16 & IAS 41: accounting for bearer plants
• IFRIC 21, Levies
• Consolidated case study: applying IFRS 17, IFRS 9, and SAM/Solvency II considerations to a sample insurer's ALM framework
• Group discussion: current trends and developments in insurance ALM

Learning approach

How you will learn

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.– Course Material: Access well-crafted supporting resources.– Group Work: Collaborate on discussions and case studies for practical insights.– Workshops & Role-Play: Participate in immersive, scenario-based activities.– Practical Application: Focus on applying theoretical knowledge in real situations.– Post-Training Support: Receive extensive support after training for skill implementation.

Discuss your requirements

Dates, duration & arrangements

Contact Ratomac to confirm dates, duration, delivery format, entry requirements and any applicable assessment or certification before booking.