A greater resource is needed to help the Head of ALM :

• Bolster the use of the EC model and enable the WPSF to prove the Solvency II ‘Use Test’.
• Improve the estimation of the hedging position.
• Formalise the dynamic hedging strategy creating a more efficient, repeatable process.

Principal Accountabilities:

There are a number of repeatable processes that will enhance the effectiveness of our ALM and potentially reduce capital requirements.   At present, many of these are done in an ad-hoc manner.  Additional temporary resource is required to ensure that there is a proof of a clear rationale underpinning each strategy, that the WP ALCO can be assured that each strategy is robust under a range of scenarios and that there is a clear, well-documented process to maintain the strategy. 

Dynamic hedging is effective, but this relies on the Head of ALM to exercise his judgment on when to rebalance and when to bring recommendations on an ad-hoc basis to the WP ALCO.  Although there have been a number of reviews on this, each have focussed on one part of the whole.  A full review will allow:

Formalisation of the dynamic hedging strategy.

A more efficient, repeatable process providing assurance that the WPSF is well managed. 

A full consideration on the optimal time to amend hedging.  There is no right answer and this is likely to take some time (with back-tested examples) to establish a clear strategy.

More delegated authority to the ALM Team.  The WP ALCO need to be assured that any delegated authority will not introduce operational risk.  Once this is proven, this will allow WP ALCO to focus management time on more value-adding issues rather than BAU.

Reduced ALM costs – an ad-hoc approach entails some repetition of first principles on each new recommendation.  It also requires more senior involvement than a more established process would require.

The estimated size of the hedging position is calculated periodically, but this is done approximately and in response to known and material changes in the underlying liabilities or market environment.  Given some initial time to set up, a better approach would be to have the estimates calculated using a daily, consistent process fully linked up to all the necessary inputs.  This will allow:

Lower risk of issues ‘falling through the gaps’.  The existing process relies on the ALM Team obtaining an understanding of the latest balance sheet via conversations with FRC.  A formal handover of information via an SLA will reduce the information risk.

Consistent link to (the best) market data.

Consistency with the Analysis of Change and improvement of our ability to understand the reasons for movement in Own Funds from period to period.

Opportunity to learn from experience.  As we receive new information, this differs from our best estimate.  The role-holder will be expected to back-test and look at past examples. 

Formalised use of Economic Capital models

This will not be owned by the role-holder, but greater resource is needed to help the Head of ALM bolster the use of the EC model.  There is currently a series of spreadsheets used to convert raw EC information into formula that can drive decision making for hedging activity and the use of these spreadsheets need enhancing. 

The jobholder will be a qualified actuary, or with equivalent experience.

Modelling experience, primarily Excel

Experience of setting strategy

Asset Liability Management experience

Experience of With Profits business would be an advantage

Whatever your role, we reward ability, performance and attitude with a package that looks after all the things that are important to you. Our employees have a wide range of benefits including a generous pension scheme, life assurance, 30 days' holiday, an annual supplement for private medical insurance, performance related bonuses, discounts at both a huge range of high street stores and our own great products, as well as a cash car allowance scheme, your hard work will be rewarded when you join us.

For more information please contact Collette Edwards, Resourcing Lead, on collette.edwards@landg.com .

Please note we are unable to accept emailed applications, please apply using the link below.

The closing date for applications has now officially passed but in line with our policy all roles on the redeployment portal do remain open for applications from redeployees only until the point an offer has been made. Please note that the selection process is underway and the role will be withdrawn once an offer has been made.