Case Study: a top-20 global life insurer improves capital planning and risk-adjusted returns with Moody’s LifeRisks

Putting Strategic Growth Plans Under the Analytical Microscope

The customer, a top-20 global life insurer, needed to understand the impact of its strategic growth plan in the bulk annuities market on its overall risk profile and capital requirements. The challenge was to assess the interaction between new longevity risk from annuities and its existing mortality risk to ensure it held sufficient, but not excessive, capital. They engaged Moody's Analytics to utilize its LifeRisks platform for an independent analysis.

Moody's Analytics implemented its cloud-based LifeRisks platform and consulting services to conduct an in-depth analysis, validating the client's internal economic capital model and providing a portfolio-specific view of risk. The solution delivered a detailed breakdown of risk capital and the offset between annuities and life businesses, enhancing decision-making. As a result, the insurer gained a better understanding of its risk profile and the ability to maximize its risk-adjusted return on capital, which increased shareholder comfort and embedded a robust framework for future enterprise risk management.