Milliman takes over Life Strategies to enter Irish market
Published 04/01/2010 | 05:00
ONE of the world's biggest actuarial consultancies, Milliman, has taken a foothold in the Irish market by snapping up local player Life Strategies.
Announced in Seattle last month, the deal sees Milliman, which boasted global revenues of $585m last year, immediately convert Life Strategies into 'Milliman Ireland'.
The move comes on the eve of the European insurance industry's switchover to new capital adequacy rules, known as Solvency 2, a development that heralds significant work for European actuarial consultancies.
"We'd be doing well ourselves; but looking out to the future, the world was becoming more globalised and it made sense for us to become part of something bigger," confirmed Life Strategies' director Jim Murphy.
He added that the move would mean no reduction in Life Strategies' 24-strong staff. "If anything it will mean more work, because we'd hope that firms who haven't used us before might use us now," Mr Murphy said.
"For mergers and acquisitions work, it would have been very hard for us to compete and work would have gone to big companies abroad. The same would have happened for embedded value review work.
"Now we'll be able to compete."
Mr Murphy said Milliman Ireland would also be able to use its "expertise and resources" on projects for other Milliman offices, and co-operate with Milliman offices abroad.
"We're already working on a Solvency 2 project with one of the international offices for a mutual client," he added.
Best known for compiling quarterly figures on the life insurance sector, Life Strategies is one of Ireland's largest independent actuarial consultancy, turning a pre-tax profit of more than €1.3m for the year ended March 2008.
The business is owned by directors and staff, who are expected to continue an "economic interest" in the new Milliman Ireland business.
Ireland will become one of Milliman's 52 offices. The staff will be part of a global team of more than 2,300, including 1,100 qualified actuaries and consultants.