Case Study: Phoenix Group achieves optimized asset-liability management and reduced market risk with FINCAD F3

Phoenix Group Uses F3 for Asset Liability Management

The Phoenix Group, the largest UK consolidator of closed life assurance funds with over 5 million policyholders, faced the challenge of optimizing risk-adjusted returns on its £7bn annuity book while preparing for Solvency II. FMG needed analytics that could bridge actuarial regulatory metrics and asset-management models, allow bespoke fixed-income modeling, and enable on-demand scenario analysis. After reviewing multiple options, Phoenix selected FINCAD’s F3 for its flexibility, APIs and ability to create custom ALM models.

Using FINCAD F3, Phoenix modeled its annuity assets under both actuarial and asset-management assumptions, performed fast scenario and stress tests, and evaluated hedging strategies (including swaptions and DV01 approaches). FINCAD’s F3 delivered scalable, on-demand analytics that improved monitoring frequency, supported better investment decisions, enabled material reductions in market risk and helped strengthen Phoenix Group’s balance sheet.

Phoenix Group

Prasun Mathur

Deputy Head of Investment Risk & ALM Strategy Deputy Head of Investment Risk & ALM Strategy