Solutions Net Capital Generation

Net Capital Generation

An important criterion for the financial performance of an insurer is the extent to which you, as an insurer, generate capital and thereby create value. In addition to the annual financial statements, the development of Solvency II free capital is an important indicator of the performance level. Triple A helps your organisation to gain optimal insight into this Net Capital Generation (NCG), advises on how to direct it and offers support in the implementation of the necessary tools and processes. This provides a solid foundation for making strategic choices.

 Better insight into NCG is also an important spearhead in the supervision of insurers, as laid down in Solvency II. The current capital position determines the value of insurers, the possibility of changing the risk profile, and the extent to which payments such as dividends or premium refunds can be made, both now and in the future.

Step-by-step towards detailed insight

Insight into NCG is primarily based on the current, existing Solvency II reports. Our NCG services work step-by-step towards further developing and detailing the insight and towards clarity about the impact of possible policy choices. Triple A experts follow these steps:

  • gain insight into historical NCG using existing Solvency II reports;
  • allocate historical NCG to the main underlying drivers;
  • create insight into NCG in the short and longer term based on the chosen drivers;
  • provide insight into the impact of possible policy choices on future NCG;
  • set up and embed processes for determining NCG;
  • set up an internal reporting and decision-making process for NCG.

Added value

Triple A has the required actuarial knowledge and expertise in (financial) risk management for both advising on and implementing NCG processes. We also have the strategic expertise in-house to generate insights that support policy choices. Further, we are able to bridge the gap between technology, implementation, and policy. We’re transparent about what we do, where it leads and what our added value is for your organisation.

Our expertise and knowledge-sharing

Optimal and up-to-date insight into NCG helps in making policy choices in areas such as premium setting, reinsurance, product portfolio and investment mix. You get a better grasp of the development of the capital position and of the possibilities to control the development of the amount of free capital. This is underpinned by our expertise in capital and balance sheet management under Solvency II and knowledge-sharing in this area.

 

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