Fentics can be utilised to construct the main components of a SII or BMA EBS balance sheet, including asset prices and asset Solvency Capital Requirements (SCRs), reserving and liabilities SCRs (with cash flow inputs), risk margins, and more. These modelling outputs can form the foundation for building regulatory reporting.
For components not modeled through Fentics, their values can be integrated through built-in true-up processes across Fentics components. This enables a reconciled balance sheet both within and outside of the Fentics environment.
The Fentics company balance sheet can transition from one period to another, or from a base scenario to a different scenario.
Six available methods include:
The intricate process of Capital Management Planning (CMP) and Own Risk Solvency Assessment (ORSA) modelling is significantly simplified in Fentics through automation and batch functionality.
This efficiency enables dynamic Asset-Liability Management (ALM) risk measurement. For instance, it can measure how an interest rate shock today might impact the solvency ratio in five years' time inside a CMP plan.
Fentics allows for the generation of shareholder cash flows, with or without a new business plan, facilitating a Discounted Cash Flow (DCF) analysis of the entire company.
This type of analysis can be applied to the current group, a potential merger and acquisition (M&A) target, or the group post-transaction.
