Welcome to African Actuarial Consultants

African Actuarial Consultants, or Team AAC, provides specialised, independent and objective advice to financial institutions across Africa. We offer our clients actuarial and advisory services that aim to deliver value beyond the traditional actuarial brief.

Our approach is to work with our clients as a team, learning about their needs and concerns so that we can tailor financial solutions to meet their personal circumstances. We aim to advise, inform and where necessary guide. We emphasize building solid long-term relationships with our clients, supported by regular visits. We believe that the better we know our clients and understand their business, the more we can add value to improve their bottom line.


Our Vision

Our vision is to be trusted and leading provider of actuarial and advisory services in Africa, in partnership with our clients.

Our Mission

To strengthen and grow financial institutions in Africa by providing high-quality services. We provide an environment where employees are trained and empowered to make a meaningful contribution to the value of our clients' business.
We are committed to maintaining high professional and ethical standards and we aim to be an employer of choice who allows for innovation and creativity.

Our Values

Our Team works according to the values below.

Professionalism
This underpins our approach to all clients.
Responsibility
This is shared by all our employees.
Integrity
We disclose to our clients what we can and cannot do and are open about potential conflicts of interest.
Entrepreneurship
We cultivate a strong sense of entrepreneurship in our employees so that they're able to identify opportunities in the markets in which our clients operate.
Excellent relationships
We aim to cultivate excellent relationships with clients, stakeholders and potential partners. We take time to listen and build open and interactive relationships with our clients to best understand their needs.
Innovation
We're distinguished through using our creativity in bringing new ideas and strcutures to our clients

Our quality standards

We thoroughly review and check all our work. We have specialist consultants who perform the work, our head of consulting who plans and checks all the work, and qualified actuaries who review and sign off all actuarial work before it is sent to clients.

Our Clients

We have developed, implemented and reviewed models, methodologies and related processes based on actuarial principles, with a proven record of accomplishment of delivery, for the following client segments:

  • Employee Benefits
  • Accident and compensation
  • Funeral Assurance
  • General Insurance
  • Health Insurance
  • Life Insurance
  • Reinsurance
  • Banking
  • Public Sector
  • The wider financial services industry

Our Services

Traditional services, our range of actuarial services are outlined below and typically apply actuarial control cycle principles.


Quantitative modelling

We have extensive experience in building quantitative models for pension, medical and compensation schemes, life and non-life insurers and related institutions. Our models are applied in:

  • meeting regulatory requirements
  • aiding management decision-making
  • reserving
  • model-office projections
  • mergers and acquisitions
  • pricing reviews
  • reporting requirements
  • product development

We also provide independent and objective review of models, including their governance and use within institutions.

Actuarial valuations

Our actuarial valuations and reviews include:

  • a consistency and integrity check of supplied data
  • quantifying liabilities
  • establishing amounts to be held in specific reserves
  • assessment, advice and statutory certifications of the solvency position of the scheme
  • embedded valuations
  • financial reporting (IAS 19)

Capital and solvency management

We perform capital modelling exercises in line with actuarial guidance, Solvency II and best practice. The output of these exercises seeds into capital allocation, stratergy, mergers and acquisitions and discussions with various external bodies. We assist clients with:

  • allocating capital for risk-adjusted perfomance measurement and identification of optimal capital use
  • exploring business reinsurance and investment strategy decisions
  • managing statutory solvency requirements
  • asset and liability analysis and modelling

Product development, pricing and funding

We review and make recommendations on an institution's:

  • products
  • underwriting
  • pricing
  • funding

We use experience rating procedures to arrive at risk premiums per policy and the pace of funding to meet predetermined liabilities.
Our premium calculations and contribution rates will estimate the effect of:

  • value sensitivities, including changes in product and benefit design
  • reinsurance and self-insurance

Reinsurance and risk mitigation

We help optimise reinsurance treaties by referring to business targets and our analyses. Our technical strength ensures that our output will assist management in decision-making around reinsurance products.

We have developed scientific models which split premiums into key components of expected claims, expenses and commissions, and risk loading. We're able to work with direct insurance writers, reinsurers and brokers.

Employee benefits solutions

The team at AAC has in-depth experience and is highly competent in employee benefits in Africa and abroad. The following are the traditional actuarial services we provide to our employee benefits clients:

  • Actuarial valuation and financial reviews
  • IAS19 valuations
  • Investment policy statement and strategy
  • Risk management frameworks and reporting
  • Benefits and pricing reviews
  • Insured and risk benefits consulting
  • Trustees and management training
  • Scheme conversions and transfers
  • Review of conversions and compliance with regulation
  • Annuity pricing and reviews
  • Bulk annuity transfer
  • Bundling and unbundling

Non-traditional services, our range of non-traditional actuarial services are outlined below and they also apply actuarial control cycle principles.


Investment management

We offer independent investment advisory services to insurance and pension institutions that deliver value in the following areas:

  • Establishment of investment objectives, goals and restrictions
  • Asset allocation
  • Asset liability management and mismatch risk
  • Investment manager research
  • Performance measurement and return verification
  • Monthly portfolio analysis and monitoring, including risk assessment
  • Comprehensive quarterly reporting
  • Manager communication and monitoring
  • Portfolio transitions and coordination of asset movements

Risk Management

Our risk management services include:

  • effective design, implementation and ongoing monitoring of the risk management system
  • continuous identification, measurement, mitigation and reporting on all qualitative risks faced by an institution
  • effective governance and embedding of the risk management and ORSA processes
  • internal control, policies and specification of risk roles and responsibilities
  • implementation of risk management tools and reporting, including risk dashboards
  • board training and appreciation of risk and solvency position projected over planned horizon
  • value-driven and compliance as we help institutions comply with current and ever-changing regulations, including preparation for the implementation of changes in regulation

We provide risk management advisory services, from design to implementation and monitoring. This involves quantitative risk modelling and enterprise risk management support work under an own risk solvency assessment(ORSA).

Accident And Compensation

Accidents are an unfortunate feature of the modern world. Many of these accidents result in loss of income for an individual, or a loss of support for a family, resulting in a claim against Schemes such as the Road Accident Fund.

At AAC we provide actuarial calculations and advisory support for accident and compensation claims. Our services include:

  • Loss of income calculations
  • Loss of support calculations
  • Future medical treatment costs
  • Attendance of meetings, including court sessions as expert witness

Our role in these matters is to prepare reports in which we estimate the capital valueof the loss of income, or the loss of support to the dependants of the deceased following an accident

At AAC we are obsessed with quality. We have thorough internal controls, with every piece of work passing through at least three different actuarial staff. We possess robust loss of earnings and loss of support models which can be used to value many individual claims. In short, you can be assured that the report you receive from AAC is of the highest quality.

Our pricing is industry competitive and we charge a flat fee per report, with an additional fee for each additional scenario after the first(child dependants valued to age 18 and age 21 will be treated as one scenario).

The standard time required to perform a quantum valuation is three days, depending on when we receive your instruction and when the matter is on trial. We can produce a calculation within a shorter time period but charge a higher fee for such work.

Insurance Advisory

We add value beyond the traditional needs in the following areas:

  • Insurance business strategy
  • Insurance process improvement
  • Insurance deals
  • Change and transformation
  • Internal and external audit advisory
  • Data analytics

  • Insurance business strategy
  • We provide insurance institutions with an external perspective on their strategy, analysing the current situation against a backdrop of the local, regional and internal envrionment. We provide:

    • local knowledge of the dynamics of the industry-specific requirements of customers and regulators
    • insight into different business models, legal structures and financing arrangements
    • business planning, including profit testing and capital and strategy evaluation
    • distribution economics and new business forecasting

  • Insurance process improvement
  • We apply actuarial expertise to assess, design and implement or independently review insurance processes, policies and controls

    This involves determining the current processes and applying best practice.

    We evaluate strengths and weaknesses of insurance processes and, where gaps are identified, we provide practical advice on solutions that could eliminate the gap.

    Typical insurance processes, policies and controls reviewed include:

    • underwriting
    • pricing
    • reserving
    • technical provisions
    • business planning
    • risk management
    • capital and treasury management, investments and valuations

  • Insurance deals
  • We provide companies with assistance and due diligence assurance through the entire deal cycle based on a thorough understanding of:

    • liabilities
    • risks
    • business drivers
    • valuation standards

    We assist in capital raising, structuring, securitisation, financial reinsurance and other methods of raising efficient capital.

    We advise companies on their financial implications of long-term employee benefit liabilities and how to manage and transfer these risks, including post-deal benefit implementation.

Banking risk solutions

The AAC team is experienced in both measuring and managing risk. Although they can't prevent irrational behaviour, actuarial and quantitative methods can help to mitigate its effect and uncertainty.

AAC provides a holistic approach to help our clients' risk management framework align to their business agenda. To us, risk and compliance with regulatory and accounting standards are more than a box ticking exercise-they're a critical investment that can underpin a bank's long-term growth,value and sustainability.

We work to protect and enhance business value by helping our clients reduce risk, cut costs and improve business perfomance.

Our core capabilities for banks include:

Modelling

  • Frequency and severity models for credit and operational risk
  • Survival models for Basel and IFRS 9
  • Modelling behaviour of demand deposits
  • Cash flow models for budgeting and balance sheet management
  • Hedge effectiveness modelling and review
  • Scenario Analysis
  • Stress-testing of banks and banking networks
  • Integrated credit risk modelling
  • Credit rating services, including corporate and sovereign credit
  • Dynamic affordability assessment for credit risk
  • Optimising credit portfolios in terms of default definition and profit scoring
  • Extreme risk modelling

Advisory

  • Risk adjusted loan pricing
  • Setting of risk appetite and alignment with corporate strategy
  • Risk function effectiveness benchmarking and design
  • Regulatory processes review and implementation
  • Enterprise risk management
  • Credit scorecard building and validation
  • Operational risk management advice and quantification
  • Collateral management
  • Corporate debt structuring
  • Product development
  • Product development
  • ICAAP implementation