Many of shortcuts and simplifications have historically been taken when implementing products for valuation and modeling. Product features and optionality that were once viewed as immaterial have become material due to a growing inforce or changes in the economic environment. ARC has a long history of hands on development of models with complex product features. This includes explicit modeling in an ALM framework to understand the full income statement and balance sheet impact.

• Indexed Products (FIA/RILA/IUL) - For indexed products, this includes the explicit modeling within and asset/liability framework to determine option budgets, the modeling of options purchased to support the indexed strategy, the option payoff, and any guaranteed benefits. Getting all of these components modeled is important to determining the financial impact from the company perspective.
   

• Variable Products (VA/VUL) - For variable products, this includes having models that correctly model the economics between the general and separate accounts. This incorporates the guaranteed benefits and modeling of the companies hedging strategy supporting these benefits