AXIS Group Annuity Module

Uses of the AXIS Group Annuity Module include the following for group deposit annuity plans:

  • Pricing and design
  • Valuation
  • Financial Statements
  • Statistics on number of lives and total face amounts
  • Cashflow projection and testing
  • Surplus adequacy testing
  • Embedded Value and appraisal
  • Asset liability management
  • Required Surplus
  • Aggregate stochastic reserve and capital requirement based on CTE methodology
  • Stochastic analysis
  • NAIC Financials
  • US GAAP Financials

The AXIS Group Annuity Module offers numerous features to support the specific requirements of modeling group deposit administration plans at both group and certificate levels, including:

  • Modeling of individual certificate movement to and from the group, as well as the lapse pattern of the group itself
  • Expense charges include those paid by group sponsor, in addition to certificate level charges deducted from fund balances
  • Product features and assumptions may depend on either total group assets and number of certificates, or on the asset level of each individual certificate, including:
    • Bonus interest rates with banding or tiering, management fee reductions with banding or tiering, policy fee schedules commission scales
    • Expense assumptions
  • Choice of approach to certificate modeling:
    • Each cohort of entrants into the group and allocated assets can be modeled separately, allowing more detailed modeling when bonuses and charges are based on individual certificate fund balances
    • The group of certificates and total fund balance can be modeled in aggregate, resulting in a simpler model with much quicker run-time
  • Multiple investment options for fund balances through investment accounts

The AXIS Group Annuity Module supports many reserves methods, including:

  • Fund value
  • Cash value on certificate lapse
  • Cash value on group lapse
  • Maximum of certificate and group lapse cash value
  • Fund - modified DAC
  • Simple discount method
  • Fund - DAC (level amortization)
  • Fund - DAC (amortize using rates in table)
  • Fund - modified DAC (amortize on positive base only)

Up to six reserve bases may be run simultaneously.