Alphalife-EV



The ability to understand the effect of tax on future cash flows for life assurance business is increasingly important for internal and external financial reporting, solvency analysis and business planning purposes.

More accurate modelling information and confidence in the results is required to aid future tax provisioning.

As a result we have developed a modelling tool, Alphalife-EV, to calculate the net present value of future UK corporation tax arising from the long-term fund of a life assurance company based on actuarial projections.

Alphalife-EV can be used to:

  • Support acquisitions by giving a means of estimating the tax synergies available by combining the target business with the existing business of the group.
  • Model different fund and corporate structures to support strategic decision making.
  • Support the tax department with forecasting, thus allowing management to understand the long term effects of changing product mix, closure to specific categories of businesses or potential business acquisitions.
  • Raise management confidence in the quality of the tax assumptions by calculating tax in the PVIF (Present Value in Force) for year end EEV (European Embedded Value) reporting.
  • Support the calculation of EV from non profit business for realistic Balance Sheet Reporting.
  • Provide a means for comparing actual tax for a year with tax for future years in EEV, thereby allowing any tax variance in the results for the year to be identified and explained.
  • Support the valuing of tax losses.

Alphalife-EV is easy to use, allowing users to model alternative options for the structure of the company such as adding or moving business income streams or funds.

It is flexible in that it provides options for users to make adjustments to the data and for capturing non-standard transactions.

The outputs include tax computations (in a style familiar to life assurance tax professionals) and pro forma FSA Forms 40 and 58 to allow the basis of the results to be reviewed.

It has been designed to produce results even if only limited actuarial information is available for certain parts of the business.

For more information or to book a presentation, please contact us and ask to speak to a member of our new business team.