MAPS Portfolio Valuation Model

The MAPS Portfolio Valuation Model performs both probabilistic and stochastic valuations on either a single policy or an entire portfolio. The user can set the stochastic valuation to reflect volatility in underwriting ratings and mortality improvements, thus reflecting volatility in the future mortality rates. From there, the model will stochastically estimate the policy's maturity date given the randomly determined mortality assumption.

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