PORTFOLIO MANAGEMENT

Monte Carlo

Once each policy has been priced, the resulting minimized premium streams and mortality curves can be imported into our proprietary Monte Carlo models whose methodology has been vetted by an outside actuarial firm. The Monte Carlo analysis provides a stochastic view into the performance of the portfolio over time by randomly assigning a different date of maturity to each policy, examining the resulting financials, and recalculating the IRR. These financials are then averaged across 20,000 runs to obtain the most probable performance level over the life of the portfolio.