Variable Annuities

Prophet comes with pre-built variable annuity functionality, for both U.S. GAAP and statutory reporting, including RBC capital requirements. The system also provides the following features and functions:

Customizable benefit riders

Prophet provides all the typical riders as part of our actuarial library, along with the ability to customize standard riders to meet your unique requirements. Our library includes Guaranteed Minimum Withdrawal Benefit riders, Guaranteed Minimum Death Benefit riders, Guaranteed Minimum Income Benefit riders, and Guaranteed Minimum Accumulation Benefit riders, along with the typical rider options such as ratchets and roll-ups.

Learn more about our actuarial libraries.

VM-21 / VACARVM calculations

Prophet helps you accurately price products, forecast earnings and understand capital requirements by calculating VACARVM (a.k.a. VM-21) and future VM-21 reserves using our ALM library and our Nested Structures functionality for future reserves. For projected VM-21 reserves, it also includes the ability to perform a seriatim run while calling an on-the-fly grouping algorithm for the CTE calculation in VM-21.

Learn more about our ALM capabilities.

GAAP balances and projections

With Prophet, you can calculate GAAP balances for Variable Annuity products, including DAC, SOP 03-1 and FAS 133, depending on the product features and riders included on the policy. You can also project future GAAP balances under a variety of management scenarios, including future unlocking impacts using Prophet's Nested Structures functionality.

Learn more about our Nested Structures functionality.

Single-model hedging

Prophet lets you use the same variable annuity model to calculate Greeks, both as-of-today and future Greeks using Nested Structures. Prophet provides a single model for all projection and valuation needs including projected hedging, giving you the ability to eliminate duplicate effort, control hardware and licensing costs, and improve accuracy.

Learn more about Prophet's hedging capabilities.