RISK SOLUTIONS
Financial risk management
Minimising financial risk, maximising financial security
Milliman is the global leader in financial risk management. Our risk management strategies have been tested for more than 20 years and through two market crises.
Milliman financial risk management solutions
Sustainable manufacturing of variable annuities
Milliman provides insurers with a sustainable manufacturing process for the creation and management of variable annuities- one that escapes the high volatility and unsustainable risks often faced by the traditional VA business model, and focuses on earning stable returns from the manufacturing of variable annuities.
Hedge execution
Milliman FRM offers full hedge outsourcing services on a global basis to life insurers and other financial institutions. This includes: hedging of market exposures in variable annuity blocks; hedging of index annuity option types; static and dynamic hedging programs, management of equity, interest rate, volatility, and exchange rate exposures; and trading of exchanged-traded and OTC vanilla and structured derivatives.
Risk managed and structured outcome fund design
Milliman FRM consults with several leading asset managers and investment product issuers to develop risk managed and structured outcome investment solutions. Investors may access strategies designed by Milliman FRM through investment products that are advised by leading asset managers around the world.
Futures and options-based risk management
With a rich history in risk management, insurance, and derivatives, Milliman FRM provides sophisticated futures and options-based risk management strategies to many of the world’s leading insurance companies and asset managers. These methodologies are typically delivered through one of four distinct investment strategies, which can be tailored to meet the specific financial risk management needs of our clients.
Benchmark and index development
Milliman partners with globally recognised index providers to develop indexes and benchmarks to risk management and structured outcome investment strategies. These indexes are widely adopted throughout the fixed indexed annuity, indexed variable annuity, and exchange-traded fund industries.
Sub-advisory trading services
Milliman FRM is a leading sub-adviser to the retirement savings industry, providing investment advisory and trading services to more than 80 investment products. The practice includes over 170 professionals operating form four trading platforms around the world (Chicago, London, Amsterdam, and Sydney).
Investment advisory
Milliman helps plan sponsors in the critical development of appropriate investment policies and strategies, providing an integrated process to help meet long-term asset allocation and funding goals. We deliver concise, action-oriented solutions that help trustees and plan sponsors create investment policies, select managers, allocate assets, manage risk, and evaluate performance.
Wealth management product development
A pioneer in developing next-generation wealth management products, we are recognised globally as the leading consulting firm when it comes to assisting wealth management organisations design, build, and manage products that meet customers’ wealth accumulation and income generation needs.
Financial risk management strategies
The Milliman Managed Risk Strategy
The Milliman Managed Risk Strategy® is an intelligent portfolio risk management technique that seeks to first prevent portfolio volatility from exceeding a designated threshold, second capture growth in up markets, and third defend against losses during sustained market declines.
Milliman Managed Risk Parity Strategy
The Milliman Managed Risk Parity Strategy® combines the dynamic asset allocation approach of risk parity with the risk mitigating features of volatility management.
Milliman Defined Outcome Strategies
Milliman’s Defined Outcome Strategy capabilities are designed to create clearly defined investment outcomes across broad asset classes and through multiple product structures.