Delta Lloyd has over 200 years of history as a reliable financial services provider in the Netherlands. Risk management is challenging given the volatile economic environment and changing regulatory landscape. Solvency II will introduce risk-based capital requirements instead of the current volume-based approach of Solvency I. This represents a major change that affects how available capital and required capital are calculated. Delta Lloyd aims to balance risk and return through tools like interest rate and equity hedging, while controlling multiple capital regimes and an increasing number of regulators.
FX Risk Advisors is the premier consulting firm created to capitalize on the unmet and growing need for companies to identify, quantify, and hedge their foreign exchange exposure. Our combined 40+ years of global market experience provides our clients with unparalleled access to foreign exchange risk management, pricing and liquidity.
FX Risk Advisors is the premier consulting firm created to capitalize on the unmet and growing need for companies to identify, quantify, and hedge their foreign exchange exposure. Our combined 40+ years of global market experience provides our clients with unparalleled access to foreign exchange risk management, pricing and liquidity.
Liquidity Risk is normally a crucial issue in a banking crisis, however, during the 2007-2010 period, Liquidity has not been as difficult for us as we may have thought. There are many reasons for this, but number one is the fact that today’s community bankers simply have a better understanding of the various techniques for raising both retail deposits and wholesale funds. What does make this crisis a bit different is the relative pricing efficiencies in the wholesale or non-core funding arena these days and our session will focus on how bankers can avoid those difficult examiner discussions about the use of FHLB Advances and Brokered Deposits. It’s all about process and we will provide guidance on what needs to be in your ALCO Policy as it relates to wholesale funding. We will also explore the April 2010 Liquidity and Funds Management Guidance to ensure your bank is up to speed on those requirements. Finally, we will provide specific guidance on both Ratio Analysis and creating your Contingency Funding Plan and will review a sample CFP.
The factsheet provides a concise description of the function and benefits of managed futures, while also explaining some of the key differences between public and private pools. This resource explains the purpose of managed futures, their role for investors, how they are regulated, and what fees are charged and disclosed to investors.
A brief overview of financial risk management strategies which will be covered in a 2 day workshop on Emerging Markets Investment & Risk Management Strategies on Sept 15-16 2011 in Singapore.
This presentations chalks out in detail information about ALM in Indian Bank. It starts with the basics of Balance sheet; applicability of ALM in real life; Evolution and then starts with main topics of ALM like structured statement; Liquidity risk, its management; currency risk and finally ends with Interest Risk management.
Links to Video’s in the ppt
Balance Sheet
http://www.investopedia.com/terms/b/balancesheet.asp
NII/NIM
http://www.investopedia.com/terms/n/netinterestmargin.asp
www.abhijeetdeshmukh.com
Today bankers and other financial service managers have learned to look at their asset and liability portfolios as an integrated whole. This type of coordinated and integrated decision making is known today as asset-liability management (ALM). This thesis is prepared on ‘The Hong Kong and Shanghai Banking Corporation’- HSBC, in Bangladesh. With its symbol of a Hexagon and the illustrative theme ‘The world’s local bank’ –HSBC is known to a lot of countries and territories of the world as a leading financial service institution. Although the history of its operation in our country is relatively new, yet HSBC already commands a great deal of respect and reputation in our banking community.
Every Financial Institute irrespective of its size is generally exposed to market liquidity and interest rate risks in connection with the process of Asset Liability Management. Failure to identify the risks associated with business and failure to take timely measures in giving a sense of direction threatens the very existence of the institution. It is, therefore, important that the strategic decision makers of an organization assume special care with regard to the Balance Sheet Risk management and should ensure that the structure of the institute’s business and the level of Balance Sheet risk it assumes are effectively managed, appropriate policies and procedures are established to control the direction of the organization. The whole exercise is with the objective of limiting these risks against the resources that are available for evaluating and controlling liquidity and interest rate risk.
Solvency II presentation Dublin July 2010kingphilip1
Mazars held a Solvency II update seminar recently. As the Solvency II programme rolls on and with QIS5 just around the corner, this seminar reviewed the recent developments and considered major challenges that insurers are likely to face between now and the end of 2012.
Liquidity Risk is normally a crucial issue in a banking crisis, however, during the 2007-2010 period, Liquidity has not been as difficult for us as we may have thought. There are many reasons for this, but number one is the fact that today’s community bankers simply have a better understanding of the various techniques for raising both retail deposits and wholesale funds. What does make this crisis a bit different is the relative pricing efficiencies in the wholesale or non-core funding arena these days and our session will focus on how bankers can avoid those difficult examiner discussions about the use of FHLB Advances and Brokered Deposits. It’s all about process and we will provide guidance on what needs to be in your ALCO Policy as it relates to wholesale funding. We will also explore the April 2010 Liquidity and Funds Management Guidance to ensure your bank is up to speed on those requirements. Finally, we will provide specific guidance on both Ratio Analysis and creating your Contingency Funding Plan and will review a sample CFP.
The factsheet provides a concise description of the function and benefits of managed futures, while also explaining some of the key differences between public and private pools. This resource explains the purpose of managed futures, their role for investors, how they are regulated, and what fees are charged and disclosed to investors.
A brief overview of financial risk management strategies which will be covered in a 2 day workshop on Emerging Markets Investment & Risk Management Strategies on Sept 15-16 2011 in Singapore.
This presentations chalks out in detail information about ALM in Indian Bank. It starts with the basics of Balance sheet; applicability of ALM in real life; Evolution and then starts with main topics of ALM like structured statement; Liquidity risk, its management; currency risk and finally ends with Interest Risk management.
Links to Video’s in the ppt
Balance Sheet
http://www.investopedia.com/terms/b/balancesheet.asp
NII/NIM
http://www.investopedia.com/terms/n/netinterestmargin.asp
www.abhijeetdeshmukh.com
Today bankers and other financial service managers have learned to look at their asset and liability portfolios as an integrated whole. This type of coordinated and integrated decision making is known today as asset-liability management (ALM). This thesis is prepared on ‘The Hong Kong and Shanghai Banking Corporation’- HSBC, in Bangladesh. With its symbol of a Hexagon and the illustrative theme ‘The world’s local bank’ –HSBC is known to a lot of countries and territories of the world as a leading financial service institution. Although the history of its operation in our country is relatively new, yet HSBC already commands a great deal of respect and reputation in our banking community.
Every Financial Institute irrespective of its size is generally exposed to market liquidity and interest rate risks in connection with the process of Asset Liability Management. Failure to identify the risks associated with business and failure to take timely measures in giving a sense of direction threatens the very existence of the institution. It is, therefore, important that the strategic decision makers of an organization assume special care with regard to the Balance Sheet Risk management and should ensure that the structure of the institute’s business and the level of Balance Sheet risk it assumes are effectively managed, appropriate policies and procedures are established to control the direction of the organization. The whole exercise is with the objective of limiting these risks against the resources that are available for evaluating and controlling liquidity and interest rate risk.
Solvency II presentation Dublin July 2010kingphilip1
Mazars held a Solvency II update seminar recently. As the Solvency II programme rolls on and with QIS5 just around the corner, this seminar reviewed the recent developments and considered major challenges that insurers are likely to face between now and the end of 2012.
Annual Report 2012 – Credit Suisse Group AG Credit Suisse
Consolidated financial statements, Information on the company, Operating and financial review, Treasury and risk management, Corporate governance and Compensation.
Download the 2012 Annual Report: http://bit.ly/1jXsjvE
Klöckner & Co SE Analysts' and Investors' Presentation FY 2014 ResultsKlöckner & Co SE
Analysts' and Investors' Presentation for the full year results on March 5, 2015
More at http://www.kloeckner.com/en/press-releases-5268.php?langswitched=1
For a german version of the presentation please visit:
http://www.kloeckner.com/de/index.php
Morgan Stanley European Financials Conference (London)Aegon
Aegon CFO, Darryl Button provides an update on Aegon's successful strategy execution. For further information contact Aegon Investor Relations email: IR@aegon.com or Telephone + 31 70 344 83 05.
Aegon CFO, Darryl Button provides an update on Aegon's successful strategy execution. For further information contact Aegon Investor Relations email: IR@aegon.com or Telephone + 31 70 344 83 05.
Recent alarming reports by the Intergovernmental Panel on Climate Change (IPCC) show that climate change is “a grave and mounting threat” to our wellbeing and the health of our planet. A swift transition to a sustainable economy is required to prevent physical climate risks like floods and heatwaves from rapidly increasing, both in frequency and severity. However, the transition itself also entails risks.
Financial institutions – and banks in particular – are uniquely positioned to play a pivotal role in the transition to a sustainable economy. The transition is providing a wide range of opportunities for banks, from large financing needs to the introduction of green bonds and sustainability-linked derivatives. At the same time, it is of paramount importance for banks to adopt a climate change-resilient strategy and to integrate climate change risk into their risk frameworks. This is underlined by the increased scrutiny of this issue by regulators in recent years.
During this year’s edition of the Zanders Risk Management Seminar on September 8, 2022, speakers from various backgrounds shared their views on climate change risk. They provided insights into the climate changes that are anticipated for the decades to come, shared possible approaches for climate risk quantification and stress testing, discussed the need for new data sources, and explained how climate change risk can be integrated in existing risk frameworks.
For more information on climate risk, please visit our website: https://www.zanders.eu.
Presentation on Zanders NGO event, 4 dec 2014.
Carmen Hett (Treasurer, UNHCR)
“How UNHCR is centralizing Cash Management in a decentralized organizational structure”
EMIR draft regulatory technical standards on contracts having a direct direct, substantial and foreseeable effect within the Union and non-evasion of provisions of EMIR
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
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Here is the what'sapp contact of my personal pi vendor
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What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
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STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataChampak Jhagmag
In this presentation, we will explore the rise of generative AI in finance and its potential to reshape the industry. We will discuss how generative AI can be used to develop new products, combat fraud, and revolutionize risk management. Finally, we will address some of the ethical considerations and challenges associated with this powerful technology.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
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Presentatie Theo Berg - Delta Lloyd voor Zanders Risicomanagement Seminar 2014
1. Risk management in a challenging environment
Zanders Risico management seminar
Theo Berg ,, 27 maart 2014
2. Agenda
I. Over 200 years of reliability and trust
II. Delta Lloyd’s view on risk management
III. Changing regulatory environment
IV. Questions & answers
3. Building on 200 years of history
1807
1967
1969
1999
2002
2003
Hollandsche Societeit Nedlloyd
Delta
Nuts / OHRA
Delta Lloyd
Delta Lloyd Nuts OHRA
Amstleven
Delta Lloyd NV
ABN AMRO Insurance
IPO2009
1973
delisting
4. • A strong Group: Dutch market leader in
new Life business (NAPI € 431m)
• An €4.7bn GWP/76 bln. AuM company:
• Life & Pension
• General Insurance
• Asset Management
• Banking
• Brands: Delta Lloyd, OHRA and ABN AMRO
• Approx. 5,200 permanent staff, focus on
the Netherlands and Belgium
• Listed in Amsterdam and Brussels
Delta Lloyd Group: reliable partner since 1807
FY 2013FY 2012
IGD Group solvency ratio
184%177%
Net operational result (€m)
430404
FY 2013FY 2012
7. 97 63 41 28
164
140
114
76
71
50
43
40
251
224
210
183
75
76
77
72
181
149
127
69
0
100
200
300
400
500
600
700
800
900
2009 2010 2011 2012
Mortgages
Term
Annuities
Funeral
Pension
Saving
• Unit-linked misseling, total compensation exceeds € 2 billion, 95% drop in sales
• Market CAGR -/- 18% a year!, New production halved in 4 years
• Bank savings increased with 39% in 2011 and exceeds individual life market
• Only in 2009 positive technical result
New Business (APE) in €m
Individual life market fastly contracting,
Group life market moving from DB to DC
839
702
612
468
8. Challenging Non-life market
• Sales volume follow GDP
• Limited profit on insurance
coverage
• Gradual decrease in CoR
• Crisis effects claims culture
• “In de brand, uit de brand”
• WGA-ER (disability) coverage
misperceived by insurers, effecting
capital ratio’s
Results of Non-life insurers, Combined operating Ratio
95
96
97
98
99
100
101
102
2006 2007 2008 2009 2010 2011 2012 2013
Investment result important part of surplus generation insurance
9. Agenda
I. Over 200 years of reliability and trust
II. Delta Lloyd’s view on risk management
III. Changing regulatory environment
IV. Questions & answers
10. History of Value reporting
• Dutch GAAP, using amortisation method
• Liabilities value @ historical cost price : 4% interest
• Embedded Value concept started in early ’90s
19/20th Century
2002/2005
• Introduction IFRS and regulatory reporting on market values
• Delta Lloyd decided to use market interest for valuing liabilities
• Assets at marked value
2010+
• New mortgages valued @ amortised cost
• Minimum replicating cost introduced for market interest
• Valuation difference with regulatory reporting
2008/2009
• Alignment with Solvency II
• Back to EEV/Cash flow reporting
• Introduction of UFR, IFRS and regulatory
11. Mismatch liability valuation and assets
1. What is the value of the liability?
2. Can we invest in the same curve?
Do we want to?
SWAP ECB – AAA
Collateralised –
AAA
Swap +
liquidity
premium
3. What is our actual investment
strategy?
Mix of debt, credit, equity and real estate
Difficult Possible Difficult
Possible, but
no exact
match
Mismatch volatility; required capital
15. Align all balance sheet elements
Duration analysis impacted by valuation concept
Balance sheet of Delta Lloyd Group (Q3 2012 in bn)
Life Liabilities
Bank, GI, Germany,
AM, and Other
Shareholders’ Funds
UL Liabilities
Life Equity
Life UL
Life FI €29
€13
€3
€34
€23
€13
€3
€34
Life mortgages,
property
€6
ASSETS LIABILITIES
• Duration
13
• Duration
15
• Duration
0
Bank, GI, Germany,
AM, and Other)
16. Exit price vs. discounted cash flows
Exit price assets:
Transaction value assets:
• Representative similar
market instruments
• Sales value house, based
on similar transactions
• Sales value mortgages,
based on funding spreads
Exit value liabilities:
Value of liabilities for a
willing buyer:
• Expected value
• Option price
• Margin for uncertainty
Discounted cash flows, or matching adjustment:
• Matching cash flows of assets and liabilities per duration
• In case cash flows emerge in same time frame similar valuation
• Buffer needed for defaults and fluctuations in cash flows
Latest Solvency II proposals allow this mechanic, but not for rental income
17. Interest rate risk: limited downside risk
Interest rates ‘Normal’ times:
•Interest rate risk is non-
rewarding
•Hedging is cheap
In extremely low interest
rate environment: higher
probability of significant
increases than decreases
Current models already
reflect non-negativity of
interest rates
18. Equity hedging: downside protected, upside left open
• Derivatives on equity indices
― better liquidity and lower premium than
on individual stocks
― hedge against market risk, confident
about portfolio
• Preference for listed derivatives and long
puts, other instruments if needed in case of
high volatility
• Sensible spread
― different exercise dates (roof tile
construction)
― different exercise prices
• Hedge reduced after underlying equity
portfolio decreased
Equity derivatives - value scenarios
19. Matching spread risk is vitally important
•Exposure to credit spreads is vital for
supporting long-term guarantee business
•Investments by insurers are also important
for the Dutch and European economy,
especially with banks lending less
•As long as defaults are negligible, spread
risk should not ‘hurt’
•We strongly support the Volatility and
Matching Adjustment concepts
20. Agenda
I. Over 200 years of reliability and trust
II. Delta Lloyd’s view on risk management
III. Changing regulatory environment
IV. Questions & answers
21. Changing capital regimes
• Since beginning ’70’s Solvency I regime:
— legal framework, volume based required capital
— Liability Adequacy Test (“LAT”) in The Netherlands
— Europe: cost-price +
Solvency I
(current
regime)
Solvency II
(regime
as from
1-1-2016)
• End ’90’s decision to move to new European framework
— market value based, risk weighted capitals
— governance, risk management and information are
other key elements of this system
• 2013: DNB interim measures (Solvency 1.5)
— Theoretical Solvency Criterion (“TSC”) for dividend
payments of Dutch life insurance entities
— Dutch ORSA (“ERB”) included in regulatory returns
Solvency 1.5
(requirement
for 2014-2015)
22. Available
Capital
Build up of Solvency I capital
Assets Liabilities
Exit price
Best
Estimate
Liability
Best Estimate
Liability
Risk Margin2
Surrender
Floor1
Market Value
Buffer
Solvency I
• Required capital
― volume based
― 4% of life reserves; 18% of general
insurance premiums
• Available capital:
Market value of assets (based on exit price)
-/- Best Estimate Liability
-/- Risk Margin
-/- Surrender Floor
• Available capital ≠ embedded value
• Solvency ratio =
1. Safety margin against policyholders liquidating their assets
2. Margin for uncertainty around Best Estimate Liability
Available capital
Required capital
Required
Capital
(100%)
23. Build up of Solvency II capital
Assets Liabilities
Best
Estimate
Liability
Solvency II
• Required capital
― risk based
― based on 99.5% confidence interval
― based on BBB level (100%)
― buffer provides insight in credit standing
above BBB level
• Available capital:
Market value of assets (based on exit price)
-/- Best Estimate Liability
-/- Risk Margin
• Surrender Floor included as available capital
• Available capital ≠ embedded value
• Solvency ratio =
Available capital
Required capital
Available
Capital
Marktwaarde
Exit price
Best
Estimate
Liability
Best Estimate
Liability
Market Value
Buffer
Risk margin
Required
Capital
(100%)
24. Solvency I to Solvency II: from volume to risk based
Capital
elements
Solvency I
(current regime)
Solvency 1.5
(requirement for 2014-2015;
dutch life entities only)
Solvency II
(regime as from 1-1-2016)
Available Capital Excludes future value of UL
business (Surrender Floor)
Excludes future value of UL
business
Includes future value of UL
business
Liability
valuation
ECB AAA/Swap Curve ECB AAA/Swap Curve Swap + Volatility Adjustment,
or Matching Adjustment
Assets Market value Market value Market value
÷ ÷ ÷ ÷
Required Capital
(SCR)
Volume based, 4% of life
reserves, 18% of non-life
premiums
Risk based, using Solvency II,
with risk changes to
mortgages and loans
Risk based, but possibility to
use internal model to better
reflect risks
=
Solvency Ratio (%) Available / Required capital Available / Required capital
* scaling factor (0.90)
Available / Required capital
25. Dealing with multiple capital regimes
Insurance NL Insurance Foreign Other Bank
Local GAAPWFT: market value Basel II/IIIIFRS: market value
Insurance NL Insurance Foreign Other Bank
Delta Lloyd Group
Local GAAPWFT: market value Basel II/IIIIFRS: market value
Insurance NL Insurance Foreign Other Bank
Delta Lloyd Group
Local GAAPWFT: market value Basel II/IIIIFRS: market value
IGD Group
solvency
Regulatory
solvency
insurance
entities
Regulatory
solvency
Delta Lloyd
Levens-
verzekering
Delta Lloyd Group
27. Same risk, same rules principles should be applied
UWV
Banks
Pension funds
28. Effects of differences in prudential supervision
• OFS Q1 2013 : “Insurers provide high guarantees”
• Banking annuities based on funding (mainly mortgages)
• Insurance annuity based on risk free curve (exit value)
• Revenues move from insurance to banking sector
29. Capital regimes determines consumer price
t=0 t=10
premium
payment
S-II
S-I
S-II*
ECB AAA
Swap
Swap + VB of
MA
110
104
100
2,0%
1,8%
1,6%
Bank Mortgages 90
2,8%
30. Need to stay in control ourselves
• More rule leads the wrong mindset, and draws
attention away from the real risks
• In the end, it is not about models and systems, but
about people taking the right decisions at the right time
• In practice, it’s a small group of people taking the ‘real’
decisions, requiring:
Risk-intelligent’ people (Dylan Evans): experience and
knowlegde to balance risk and return
• Transparency (market valuation)
• Act swiftly between Board, investment and risk
specialists
Risk / Return tradeoff very important:
‘It is not so much about what you know, but about your
sense of reality what you don’t know’
31. Agenda
I. Over 200 years of reliability and trust
II. Delta Lloyd’s view on risk management
III. Changing regulatory environment
IV. Questions & answers