Annuity ALM Specialist

The Role: 

The Actuarial Valuation and Modelling (AMV) team are the experts in the Group for: 

•  the valuation of insurance entity liabilities for the regulatory and statutory metrics of Solvency UK, UK GAAP and IFRS 17; and 

•  determining required capital and IFRS risk adjustment for plc, PAC and PPL for regulatory reporting, including stress and scenario testing to support decision-making such as asset strategy. 

The Annuity Asset Liability Management (ALM) team within AMV are responsible for the underlying compliance and strategic plans for the Matching Adjustment (MA) portfolios, which provide significant benefit to the PAC balance sheet. As well as the control aspects of the work, the team supports the design and development of new products and asset strategies, ensuring that these fully consider and adhere to MA rules and regulations. Furthermore, we are a trusted source of expertise, helping M&G plc to better understand, control and optimise the shareholder balance sheet to deliver improved shareholder outcomes. We apply our expertise and analysis to improve understanding and deliver solutions. 

As well as working closely with other teams in AMV, we work with a range of internal and external stakeholders to develop and apply business solutions relating to Annuity ALM.  Within M&G these include Pensions Risk Transfer, the Life Investment Office, Risk, the Chief Actuary’s team and Finance Strategy.  External stakeholders include the PRA, investment banks and consultants. 

Key Work Level Accountabilities: 

•  Delivers high-quality technical and analytical work, using relevant specialist knowledge and sound judgement. 

•  Takes ownership of allocated work and outcomes, working independently with appropriate support and guidance. 

•  Applies judgement to evaluate potential solutions, considering customer outcomes, commercial value, cost and risk. 

•  Builds effective relationships across the business, communicates complex matters clearly and provides constructive challenge where appropriate. 

•  Identifies opportunities to improve strategy, processes, controls and the quality and efficiency of outputs. 

•  Contributes proactively in areas where approaches and processes are still developing, using initiative to move work forward and gaining stakeholder support. 

The role will  support a wide range of activities in shaping and driving forward the Annuity ALM approach: 

•  Portfolio insight and decision-making – Developing a comprehensive understanding of the assets underpinning the annuity business and working with the Life Investment Office to support investment decisions and portfolio strategy. The successful candidate will be expected deliver high-quality analysis, insight and challenge across areas such as trading, optimisation and portfolio management, helping ensure decisions are supported by robust management information and a clear understanding of their impact on the wider business. 

•  Compliance and controls – Supporting the Head of Annuity ALM in maintaining MA compliance , through the operation, maintenance and enhancement of the MA process.  Including controls, documentation and MI.  Supporting the development of the annuity new business and asset strategies within the permissions, constraints and governance applying to the portfolios. 

•  New business and innovation – Supporting the Pensions Risk Transfer team to deliver new business ambitions and develop innovative propositions, including providing insight into current MA approvals and contributing to projects to vary MA permissions with the PRA where required. 

•  Asset strategy – Helping shape the asset strategy for the annuity business, taking account of the constraints and opportunities inherent in MA portfolios, capital and liquidity considerations, and the needs of a business open to new pension risk transfer opportunities. 

•  BPA+ development – Helping build the asset strategy, governance and controls required for the evolving requirements of BPA+, M&G’s new and innovative with-profits BPA proposition, ensuring that investment, actuarial, regulatory and operational considerations are reflected in the developing framework. 

•  Emerging priorities – Responding to regulatory, balance sheet, market and stakeholder developments and contributing to wider initiatives affecting the annuity portfolios. 

•  Communication and delivery – Explaining complex financial concepts to technical and non-technical colleagues, producing clear analysis and recommendations, and taking ownership of work from initial investigation through to implementation and ongoing operation. 

•  Relationships and external perspective – Maintaining strong internal and external networks to support delivery and keeping abreast of relevant market, regulatory and competitor developments. 

Key Knowledge, Skills & Experience: 

•  Relevant experience in financial services, which may have been gained through actuarial, investment, asset management, risk or another related discipline. 

•  Strong analytical and problem-solving skills, with the ability to understand the financial and commercial implications of investment and balance sheet decisions and turn complex analysis into clear messages and recommendations. 

•  Ability to work independently, use initiative and take ownership of outcomes, while seeking support and input where appropriate. 

•  Ability to work effectively where approaches and processes are still being developed and to help translate emerging requirements into practical strategy, processes and controls. 

•  A strong controls mindset and understanding of governance, risk and compliance in a regulated environment, combined with an interest in strategic and commercial outcomes. 

•  Strong verbal and written communication skills and experience of building effective relationships and influencing stakeholders across different technical backgrounds. 

•  Ability to manage and progress multiple work items concurrently, including responding effectively to changing priorities and short timescales when required. 

•  Knowledge of Matching Adjustment portfolios, annuity business or Solvency UK regulation would be advantageous, but is not essential where a candidate demonstrates the ability and motivation to learn and develop quickly. 

•  Understanding of with-profits business would be beneficial given the development of BPA+, but is not a requirement for a successful candidate. 

•  Strong asset management or investment experience would be particularly relevant, although candidates from a range of backgrounds are encouraged to apply.