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Liberty Holdings

Liberty Financial Solutions

Libfin is a centre of excellence for the management of Liberty Group’s market, credit and liquidity risks, as well as the management of its shareholder investment exposures.

Libfin’s primary responsibilities include the following:

  • Management of asset-liability mismatch risks arising in the life insurance business, primarily resulting from the guaranteed investment product set and capitalised margins
  • Origination and management of credit assets backing the guaranteed investment product set (the “Credit Portfolio”)
  • Management of the performance of shareholder investment exposures in the life insurance business (the “Shareholder Investment Portfolio”)

Libfin Markets:

Libfin Markets perform a focused asset-liability management (“ALM”) function, adopting market-leading risk management practices, as well as a credit asset origination and management function to extract value from the long-dated funding implicit in the guaranteed investment product set.

Asset-liability management

Libfin Markets’ ALM activities include the following:

  • Minimising exposure to the investment guarantees sold to our clients through the use of best practice market risk management techniques
  • Leveraging the long-dated funding implicit in our guaranteed investment product set to maximise on, a risk-adjusted basis, the return to shareholders from assuming the liquidity and credit risks on the assets used to match policyholder liabilities
  • Leveraging the unit’s infrastructure and capital markets expertise to create innovative new investment products for our clients

Credit Portfolio

Libfin Markets seeks to extract value by investing in credit assets to match certain guaranteed investment products. These assets constitute a well-diversified portfolio of government, corporate and infrastructure instruments. The portfolio holds a range of listed and unlisted assets, primarily debt in nature, and continues to develop with the addition of new and alternative assets.

The team

Libfin Markets is a team of highly qualified professionals—including chartered accountants, actuaries, lawyers, derivative traders, quantitative analysts, structurers and deal makers—typically with investment banking and life insurance experience.

Libfin Investments:

Libfin Investments aims to optimise the Shareholder Investment Portfolio’s after tax returns over the long term and within the constraints of the Group’s risk appetite.

Shareholder Investment Portfolio

The Shareholder Investment Portfolio (“SIP”) consists of:

  • Assets backing the life company’s IFRS net asset value
  • Exposure to the investment performance of policies where shareholder’s share in this performance (“90/10 business”)

Libfin Investments performs the following functions in managing the investment performance of the SIP:

  • Appropriate portfolio construction and fund allocation to underlying specialist asset managers
  • Ongoing performance evaluation to ensure quality investment performance
  • Reviewing strategic asset allocation and investment strategy within the context of a dynamic life company balance sheet and a stated Group risk appetite

The team

Libfin Investments is a skilled team with strong experience in portfolio construction, investment strategy and asset management. Individuals are typically CFA Charterholders or actuaries.

Liberty Holdings

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