The Equity Release working party will be presenting its paper titled ‘Actuarial Management of ERMs’.  This presentation will summarise the key parts of the paper which cover:
1.Current economic and regulatory factors affecting the market for equity release mortgages in the UK
2.A summary of the approaches to modelling the no-negative equity guarantee
3.The methods used for valuing ERMs under IFRS and Solvency II
4.Securitisation of ERMs – Why is it needed?  How is it done?  What is their treatment under Solvency II?
5.Internal rating of ERMs - Why is it needed?  How is it done?  The types of stresses and scenarios considered in rating analyses.

As part of our research we have undertaken a survey of market participants and held one-to-one interviews with market participants.  The results of these market surveys will be presented under the relevant headings above.

Chair: Paul Fulcher, Milliman

Speakers:  Tom Kenny, Just; Charles Golding, Golding Smith and Partners Ltd;Alex Mockridge, Legal and General Group Plc; Nigel Hayes, Aviva Plc; and Scott Robertson, Phoenix Group Holdings