Portfolio Projections and Stress Tests

GLP utilizes sophisticated profitability models in projections used for its reinsurance business. These models not only project the base case cash flows, but they give GLP the ability to perform a multitude of stress tests. Settlements can be grouped by medical impairments and stress tests can be done on the cash flows by impairment. For example, what happens if all stroke patients have their life expectancy increased by 10% as a result of a new treatment? Also, what is the exposure to insurance companies raising the cost of insurance rates on non-guaranteed products? These tests are flexible and can be segregated by issuing company with separate stresses for each issuer.