WTW releases next-generation U.S. Library models in RiskAgility Financial Modeler, delivering full VM-22 capability for life insurers
WTW announced the release of the next generation of its U.S. Library models within RiskAgility FM—a major upgrade that fully incorporates Valuation Manual 22 (VM-22) requirements for non-variable annuity products. The enhanced model suite equips insurers and reinsurers with a powerful, production-ready platform to meet the new VM-22 reserving framework with accuracy, speed, and transparency.
VM-22 reshapes statutory valuation for fixed annuities, fixed indexed annuities, structured settlements, and pension risk transfer (PRT) liabilities by introducing a market-aligned, principles-based approach. The updated RiskAgility FM U.S. Library models provide an end-to-end modeling environment that fully aligns with VM-22, enabling companies to navigate the transition with confidence.
The release builds upon WTW’s existing asset and liability modeling suite for U.S. statutory and generally accepted accounting principles (GAAP) valuation, delivering comprehensive VM-22 reserving capabilities, including:
– Enhanced asset–liability integration, supporting full investment modeling and key interactions required under VM-22- Efficient projection architecture, enabling distribution of both outer-loop (projection) and inner-loop (valuation) runs- Built-in support for VM-22 aggregation groups, portfolio-aligned investment strategies, and scenario-based reinvestment rules
Kim Steiner, North American Life Practice Leader, Insurance Consulting and Technology, WTW, said: “I’m excited to bring this next generation of RiskAgility FM models to the U.S. annuity market at such a pivotal moment. By delivering a complete VM-22-ready model suite, we’re giving insurers the ability to meet the new standard with precision and accelerate their transformation toward a more sophisticated, future-proof modeling framework.”
About RiskAgility Financial Modeler
RiskAgility FM is WTW’s actuarial modeling platform, built to support complex valuation, pricing, forecasting, and capital calculations at scale. RiskAgility FM combines an intuitive modeling environment with an integrated AI assistant for faster development. Powerful governance features include version control, workflow automation, audit trails, security permissions, and detailed change management. RiskAgility FM’s distributed computation engine dramatically improves performance, enabling insurers to run large stochastic and nested-stochastic workloads across cloud or on-premise infrastructure. The platform’s U.S. Library provides U.S.-focused liability models with integrated asset capabilities.
About Insurance Consulting and Technology
WTW’s Insurance Consulting and Technology business serves the insurance industry with a powerful combination of advisory services and leading-edge technology. Our mission is to innovate and transform insurance, and we deliver solutions that help clients select, finance, and manage risk and capital.
We work with clients of all sizes globally, including most of the world’s leading insurance groups. Over 1,000 client companies use our specialist insurance software on six continents. With over 1,700 colleagues in 35 markets, we continually strive to be a partner and employer of choice in the insurance industry.
ERGO life insurers adjust overall interest rates to current market developments
ERGO Vorsorge Leben, the ERGO Group’s life insurance provider, is adjusting its current total rate of return for 2021. Similarly, ERGO Leben and Victoria Leben, the two companies responsible for traditional life insurance products, are to adjust their overall rates of return from last year.
“In light of constant low interest rates, the ERGO life insurance companies, after years of constant overall rates of return, will make a slight downward adjustmemnt to the distribution of profits for 2021,” said Michael Fauser, Chairman of the Board of Management of ERGO Vorsorge. “In doing so, we are following the current market trend, while at the same time offering our customers an attractive interest rate in the new year.”Total rates of return in detail:ERGO Vorsorge Leben: ERGO Vorsorge Lebensversicherung will be setting a current interest rate for 2021 of 2.35%. Added to this will be 0.2% from the terminal bonus and the basic share in valuation reserves. This brings the overall rate to 2.55%.ERGO Leben: ERGO Lebensversicherung will be setting a current interest rate for 2021 of 2.00%. Added to this will be 0.25% from the terminal bonus and the basic share in valuation reserves. This makes the overall rate 2.25%.Victoria Leben: The current interest rate for 2021 at Victoria Leben will be 2.00%. Customers will also receive 0.25% from the terminal bonus and their basic share of the valuation reserves. The overall rate of return is therefore 2.25%.“ERGO remains a reliable and financially strong partner for its customers,” said Michael Fauser. “This is again underlined by ERGO Vorsorge’s high solvency ratio of 520%, which is exceptionally high when compared with the market average, and its best ever credit rating of AA from rating agency Assekurata.”With its life insurance companies, ERGO continues to follow an optimal investment strategy that is tailored to the business model in each case, in order to ensure a durable and attractive rate of interest by generating suitably high current income. Alongside long-term, high-quality investments, the Group strategists rely on diversification in the form of foreign currency bonds. In addition, ERGO is expanding its commitment to sustainable infrastructure financing in segments such as wind power, district heating and rail networks, and also in real estate financing. ERGO Vorsorge Leben is also making increased use of the return opportunities on the equity markets.Background to overall rate of returnEach year, insurers calculate their earnings from investments and other profit sources. Their customers receive a share of the profits. At the end of each year, the insurers decide on the running yield and whether any maturity bonus will be paid out to their customers. Taken together, this constitutes the overall rate of return. In many policies, the bonus also includes a share of the valuation reserves.Existing customers are paid at least the interest rate guaranteed at the time their policy was signed.The distribution of the bonuses is reported by the insurers to the German Federal Financial Services Authority (BaFin).