Consulting
Financial Projections and Forecasting
Income Statement and Balance Sheet projections are an important part of management reporting. The ultimate goal is to produce projected financials on multiple reporting bases while incorporating management's view of the future which includes measuring the impact of management's strategic decisions.
Projection of Principle-Based Reserves/Capital and US GAAP Balances
With PBR balances becoming a more significant portion of the balance sheet and the adoption of US GAAP LDTI, the modeling requirements have become much more complex. ARC has successfully partnered with clients to design nested projection models to properly reflect scenario paths including:
​
-
US Statutory Balances: VM-20, AG43/VM-21, C3-Phase1 and C3-Phase 2
-
US GAAP LDTI Balances: DAC, LFPB, FAS133/MRB
​
In addition to producing wholistic financial projection results, the nested projection models are important analysis tools to developing insight into the drivers of these actuarial balances under different scenarios (e.g. when does the DR and/or SR become a driver of VM-20 balances)
Financial Projection Processes
It is common for companies to assemble projected financials from various sources and models. This leads to a resource intensive process that is time-consuming to produce and refresh. And when assumptions or results that feed into the process need to be refreshed, even more time is required. ARC has partnered with clients to rationalize how these projections are compiled and determine where it is appropriate to include particular elements in the actuarial model. The goal is to reduce the resources and time required to refresh projections.
​
Contact us today to learn how ARC's experience can elevate your financial models
