Welcome to Alm. Brand on our ALM Projection Model
Alm. Brand and Keylane have entered into an agreement on the implementation of Keylane’s ALM (Asset Liability Management) Projection Model for calculating stochastic provisions. This will help Alm. Brand comply with the expected guidelines from the Danish FSA.
The Danish Financial Supervisory Authority (FSA) are about to issue guidelines in April 2018 on how to quantify the provisions for solvency purposes under “Solvency II compatible methods” in order for Denmark to follow the European standards in the area. Based on these expected guidelines, the Danish pension provider Alm. Brand has decided to take the necessary steps to stay ahead of legislative requirements by entering into agreement with Keylane.
Keylane has already developed a solution – Keylane ALM Projection Model – for calculating stochastic provisions, that supports the Danish FSA’s regulations, and we are delighted that Alm. Brand again acts as a visionary company in terms of compliance.
For some time, Alm. Brand has had a wish to implement an ALM model for projection with focus on budgeting and risk management. The project has been given high priority now due to the Danish FSA’s announcement of new guidelines.
“Our close co-operation with Keylane was initiated in 2013 with the implementation of the Valuation solution for cash flow calculations where Alm. Brand was first mover in the pension market. We continue this trend as both companies once again act as front runners in developing digital pension solutions to the benefit of our customers,” says Claude Reffs, CEO, Alm. Brand.
Staying ahead of legislative requirements
With Keylane’s ALM Projection Model Alm. Brand achieves a consolidated and transparent solution that provides the following:
- Calculation of Solvency II balance by stochastic methods
- Determination of forecast interests, cf. the new industry standard for pension forecast calculations
- Consolidation of budget projections, capital plan, definition of depot interests, ad hoc analysis, etc.
- Advanced risk management regarding linking the investment strategy to customer’s actual commitments
Appointed Actuary at Alm. Brand Niklas Lindholm explains: “Initially, we will focus on complying with the new regulations from the Danish Financial Supervisory Authority by the end of 2018. We are convinced that the standard solution from Keylane will help us succeed with the project. Following this, we will explore the many application possibilities of the model within the risk management and investment areas.”
The perfect match at the perfect time
Keylane’s complete offer to the market is a full ALM Projection Model containing the following three main elements:
- Cashflows for modelling customer obligations – Keylane Valuation
- Economic Scenario Generator (ESG) for generating future financial market conditions – CphSim ESG (offered by Copenhagen Simulations, which Keylane has partnered up with in February 2018)
- A projection engine – Keylane ALM – that links assets and liabilities with customer-specific business rules, applicable law and industry standards (the Keylane ALM solution is integratable with other ESG solutions and cash flow generators)
“We are highly pleased with the new co-operation with Alm. Brand – it is the perfect match at the perfect time. Alm. Brand is a professional, visionary and focused customer with well-defined goals – Keylane has the solution, the plan and the expertise,” says Mads Storgaard, Chief Actuary, Keylane.
“We appreciate the trust Alm. Brand shows in us by enhancing our co-operation in the ALM area, and we look forward to supporting the actuarial as well as the entire pension area with this project,” states Lars Sønderby, VP Sales Life & Pension Nordics, Keylane.
More information
Please contact Mads Storgaard at mads.storgaard@keylane.com or Lars Sønderby at lars.sonderby@keylane.com if you would like to hear more about the Keylane ALM Projection Model and how you stay ahead of legislative requirements.
Alm. Brand – is a Danish pension fund which is part of a financial services group consisting of a listed holding company and a number of subsidiaries operating within non-life insurance, banking and life and pension insurance. In addition, the Group operates an investment business in the ordinary course of its operations. The Group has a turnover of approximately 7.5 billion. and approx. 1600 employees. For more information visit www.almbrand.dk
Keylane – is a leading European supplier of standard SaaS solutions for the insurance, life and pension industry. Keylane is headquartered in Utrecht, The Netherlands, and has over 750 employees across offices in Europe. In April 2017, Keylane acquired Schantz, a supplier of standard software solutions for life and pension companies and holistic financial planning tools for banks.