Asset Liability Matching (ALM)

  • Assumptions regarding long-term expected returns play a critical role in Asset/Liability Management (ALM) of financial institutions.
  • This article questions the validity of assumptions regarding long-term expected returns used by many financial institutions at the present time.

    2003 - Are We In A Different Market Paradigm?, Society of Actuaries

1991 gov insurance_Company_Solvency

The situation is always very fuzzy without a great deal of back
ground knowledge as to what the value of the assets is in their
case, and how it matches up against the liabilities.

Thomas S. Sutton (Pacific Life / ACLI)