In the past few years, Milliman has advised on more than $25 billion in structured finance insurance solutions, participating in most of the securitization transactions and many privately funded and letter-of-credit transactions. This field, which provides insurance companies with more flexibility in managing capital, is complex and rapidly developing. Companies know they can turn to us for up-to-date information, industry-leading experience, and unbiased, fiscally sound guidance.
Our clients include insurers, reinsurers, banks, and financial guarantors, all of whom rely on us for accurate cash-flow projections, as well as thorough deal and portfolio risk analysis. We are experienced in a wide variety of structured finance, including securitizations, private or bank-financed deals, and warehouse deals.
We have the experience to assist our clients with appropriate solutions and all associated risks. We are well-versed in all types of structured finance insurance solutions, including:
- XXX and AXXX transactions: Milliman has advised on most of the XXX and AXXX securitizations. Our actuarial expertise is critical for developing detailed baseline models, assumptions, and sensitivity scenarios. We are active participants in discussions with regulators, rating agencies, financial guarantors, and potential investors.
- Embedded value: We are a trusted source of the precise calculations needed for embedded-value securitizations.
- Closed block: We have assisted companies on all of the regulatory closed-block transactions, providing analyses of risks associated with traditional life insurance business.
- Mortality-catastrophe bonds: We have advised on all of the major insurance industry transactions in this category. Our experience is unparalleled.
- Longevity transactions: We have assisted clients in several of these transactions and have worked closely with various parties as they consider different approaches in this newly developing field.
Strategic assistance for an insurer in a XXX securitization
Milliman assisted an insurer in evaluating alternative ways to fund redundant reserves. After the insurer decided to use a securitization solution, Milliman developed assumptions and models for the level-term business included in the securitization, including development of economic reserves. Our projections included baseline projections as well as a range of stress tests. The results from our work were documented in a report that was included in the offering circular for the transaction. We developed a separate report, reviewing the transaction "deal model." We also participated in discussions with the rating agencies, the regulators, the financial guarantors, and potential investors, on behalf of our client.