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 financing reporting, solvency analysis and business planning purposes. Alphalife-EV calculates the net present value of future UK corporation tax arising from the long-term fund of a life assurance company based on actuarial projections.

An intuitive mapping interface for importing data from actuarial projections, combined with comprehensive tax logic and standardised outputs create a robust environment for forecasting tax cash flows.

The ability to model different fund and corporate structures facilitates strategic decision making, provides confidence in the tax assumptions used in MCEV (Market Consistent Embedded Value) reporting and supports the valuation of tax losses.

Key application features
Easy to use and intuitive structure for data import

Alphalife-EV utilises an intuitive mapping interface to import data from actuarial systems such as Prophet and Moses. Manual adjustments can also be imported from any Microsoft Excel workbook. Updated data can easily be reloaded without the need for remapping.

Robust tax calculation engine

All of the tax calculations are maintained by TCSL and cannot be manipulated. This leads to unparalleled speed in processing calculations and provides a robust basis for the tax computations. Fully iterative calculations of policyholder tax and refinements to investment reserve are processed as standard. Annual software updates ensure that the tax logic remains up to date.

Standardised outputs

Calculations of fund and company tax charges are exported to Microsoft Excel in a layout familiar to life tax professionals. Full reconciliations from tax per actuarial inputs to tax as modelled are included as standard. Summary reports include discounted tax cash flows and full reconciliations between fund and company tax charges.  

Ability to model different fund and corporate structures

Alphalife-EV allows users to model alternative options for the structure of the company by adding or moving business income streams or funds. Results can be produced even if only limited actuarial information is available for certain parts of the business.

Comprehensive data validation and audit trail

Alphalife-EV produces reports of warnings and errors, mapping tables, revenue accounts summaries and pro forma FSA forms 40 and 58 to facilitate data validation and ensure a fully transparent audit trail.

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