MAPS Portfolio Valuation Model
The MAPS Portfolio Valuation Model performs both probabilistic and stochastic valuations on either a single policy or an entire portfolio.
Using a Monte Carlo simulation, the dates of death for insureds are randomized to stochastically estimate policies’ maturity dates.
Portfolio Management:
- Calculates the economic value for your portfolio, which may be used for multiple reporting and financial purposes
- Cash flows can be generated for thousands of scenarios that can be fed into a securitization waterfall structure
- Individual policy IRRs can be calculated for all policies in the portfolio in one projection
- Allows the portfolio's concentration exposure to various risks (e.g., medical conditions, credit risks, etc) to be managed
Key model features include:
- Mortality rates can be set at the current age or as a blend of current and next age
- Mortality improvement assumptions can be based either on a constant rate or based on historical population mortality improvement rates
- Generates data-rich reports for insight into the variables that affect anticipated cash flow, including:
- Actuarial value of the portfolio
- Internal rate of return (IRR)
- Distribution and standard deviations of value and IRRs
- Expected and sample scenario cash flows
To learn more about the different MAPS Life Settlement Valuation models, view our Model Feature Comparison.