We have developed a comprehensive package of gift annuity risk management services and modeling tools along with LIRMAS– Life Income Risk Management Analytic Suite–our proprietary business process designed for pools of $10 million or more.
Our principals recently invented the Life Income Risk Management Analytic Suite. Our proprietary package of CGA risk management models, algorithms and formulas determine the overall pool’s health; exhaustion probabilities using sensitivity analysis; optimal asset allocations given the characteristics of the annuitants; risk retention/reduction/transfer thresholds and policy implications; and optimal strategies for “underwater” annuities. This analysis is beneficial for any CGA pool; however, it is specifically designed for pools greater than $10 million.
This tool uses a proprietary gift annuitant life expectancy table to more precisely measure CGA liabilities. The 15-step business process employs a series of formulas to analyze 10 dimensions of risk, and then offers customized policy recommendations to optimize ending balances while minimizing risks. The report is specifically designed to be developed collaboratively with the charity’s gift annuity investment manager.
The customized report generally includes 20 to 40 pages of information and 15 to 20 pages of graphical representations (approximately 30 different charts). Fees depend on the number of annuitants and complexity of the analysis. Please contact us for our fee schedule regarding this service.