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CAPITAL MODELLING

"Capital follows risk"

 

An evaluation of a business’ capital requirements is predicated on understanding the structure of the portfolio in question, the operating environment and the interaction of the various economic and risk drivers.


 

CAPITAL EVALUATION UNDER SOLVENCY II

Solvency II allows companies to calculate their capital requirements using any one of several methods. We have extensive experience in all of the options available, ranging from Standard Formula to Full Internal Model.

Solvency II as part of its governance requirements under Pillar II requires companies to perform an ORSA (Own Risk of Solvency Assessment), at least annually. Companies are required to set out their view of risks affecting the business, control and governance structures in place and provide an evaluation of the economic capital requirements over their business planning horizon. We have experience in building ORSA models and assisting clients with their wider ORSA process and documentation.

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