BWCI is the largest firm in the Channel Islands (Guernsey, Jersey) offering a wide range of actuarial services, international pension plan administration, and support in selecting investment managers.

As specialists in the valuation of personnel commitments, we create actuarial projections of future cash flows for liabilities for ALM studies. In our ALM studies, we take into account biometric exit probabilities such as disability and death, employee turnover, economic factors, investment asset returns, and asset class correlations.

In a low-interest-rate environment, companies face negative effects on the liability side, as commitments are valued higher due to the lack of significant discounting of future cash flows. On the asset side, low interest rates result in lower asset gains. This often leads to significant funding gaps, which can cause balance sheet issues.

To achieve long-term financial stability for these commitments, a risk/return-efficient investment strategy must be implemented in the medium term, taking cash flows into account. By modeling dynamic investment strategies and presenting realistic market scenarios, our ALM studies provide a reliable estimate of funding risks. Naturally, any governance guidelines and risk preferences can be incorporated into our simulations.