The object of the Asset Liability Management (ALM) is the financial optimization of the balance positions with respect to the return, risk requirements, liquidity obligation, etc. Therefore, it represents an essential part of the corporate management, especially for banks and insurance companies. It gains more and more importance due to the increasing requirements concerning risk management.
The providers of pension products are confronted with two main developments in recent years. The low-interest phase displays a great challenge to the asset investment. Insurance companies have reacted with the development of complicated products, which imposes new requirements on the equity, given in the regulation prescription (Solvency II). Moreover, due to new customer business the demands on the reserves for the liabilities have changed.
In a variety of projects we have examined and processed single sections of the Asset Liability Management. As a part of an intern development program, we are currently working on a software which contains all necessary elements of the Asset Liability Managements with the aim to simulate the development of companies.