Banking and Insurance

Audit and Advisory

We provide actuarial audit and advisory services in the financial sector, amongst others, with actuarial expertise in life and general insurance reserving and reporting, credit risk reporting and management and the valuation of complex financial assets and liabilities.

In collaboration with

Bespoke solutions that comply with the relevant standards, add value and aid decision making

Independent validation of results using actuarial techniques

Advisory support from an actuarial as well as an audit perspective

The optimal solution to financial reporting and risk management in areas of uncertainty must go beyond merely doing the maths.

It must be accompanied by appropriate interpretation and the professional judgement that can be expected from actuaries to arrive at a fully informed solution. It further goes without saying that compliance with all audit and regulatory reporting requirements is not negotiable.

The combination of our actuarial skills and a deep understanding of the audit and regulatory environment, puts us in a perfect position to provide holistic solutions to our clients. A multi-disciplinary approach is followed where the actuarial team collaborates closely with the Auditors and other experts across SNG GT, with further access to global resources and expertise through the wider Grant Thornton International network of firms.

Quantitative analysis of uncertain future events gives a full understanding of the extent of estimation uncertainty and supports the Auditor to identify potential risks of material misstatement in financial statements.

The experience and expertise that this team brings to the audit engagement is of specific relevance in the financial services sector but is also invaluable in any company where there are areas of financial uncertainty, like impairment of trade debtors, intercompany loans, share-based schemes, future employee benefit obligations, etc.

We provide actuarial advisory services to Boards, Risk Committees, HR Committees and management in general, to manage, quantify and report various financial risks

Given our experience as auditor’s experts, we have a thorough understanding of regulatory and compliance requirements which add significant value when providing advice to our clients on any aspect that will be subject to external audit. This “Auditor’s perspective” has further given the actuarial team exposure to a wide range of clients which, in turn, provides insight into best practices across the industry to be applied to the benefit of all our clients.

What we offer

Credit Risk Provision (IFRS 9, CEC, GRAP104)

We review, develop and manage credit risk models for all relevant exposures, including:

ECL models for wholesale and retail loan portfolios
Trade and other receivables
Finance lease receivables
Intercompany and other loans
Cash and cash equivalents
Financial guarantees
Credit and Debit Value Adjustments (CVA/DVA/XVA) on derivative transactions

Advisory services provided to support our clients with the management and reporting of their credit risks, include the following:

ECL parameter estimation and calibration
Conceptual model methodology reviews
Back testing and validation of ECL models
Credit scorecard validation
Compliance reviews

Financial Instrument Valuations (IFRS 9, IFRS 13)

Our team has the expertise and access to the necessary tools and financial information to perform and review the valuation of complex financial instruments, using advanced mathematical techniques, including:

OTC options and derivatives
Measuring Hedge Efficiency and Hedge Effectiveness
Fair Value calculations of financial assets/liabilities (e.g. SPV’s, preference shares and other financial instruments)
Weighted Average Cost of Capital
Lease and Incremental Borrowing Rate (IBR) calculations (IFRS 16, IAS 17)

Insurance Risk Management and Reporting (IFRS 4, IFRS, 17, Regulatory Reporting)

Our clients include a range of entities that are subject to the Long-Term Insurance Act, including:

Long-term insurance (Life),
Short-term insurance (General), and
Cell captives.

Advisory services provided to our clients include, among others:

Initial implementation and impact assessment of new regulatory reporting requirements
Calculating or reviewing Capital Adequacy Requirements, and
Quantifying Technical Reserves.

Defined Benefit Obligations (IAS 19, GRAP 25)

With more than 20 years of experience in the retirement fund industry, our retirement fund actuaries are acknowledged as industry leaders in this field. Defined Benefit Obligations that require actuarial expertise for financial reporting purposes include:

Defined Benefit Retirement Funds,
Post-Retirement Medical Aid Subsidies, and
Long Service Awards & Leave Allowances.

Quantifying the value placed on employee share options & BEE schemes involves complex modelling of the factors that contribute to these schemes. We can perform or review valuation of such schemes using, amongst others, forecasted share prices, dividends and other variables on which the scheme is based.

What our client say

Sesana Mokotedi

Financial Manager – Barloworld Ingrain

Barloworld Ingrain

SNG ARGEN has been assisting our company with actuarial calculations in respect of loss of Income and loss of Support claims since 2014. They also assist our company by acting as an expert witness. Our company is totally satisfied with the quality work supplied to us by SNG ARGEN Actuarial Solutions.

Takalani Tshibalo

Risk Finance Manager - Exxaro Insurance Company

Exxaro Insurance Company

Exxaro has utilized SNG Argen Actuarial Solutions for advisory services pertaining to certain complex reinsurance contracts. The service rendered by SNG Argen Actuarial Solutions has been executed professionally, timeously, and of a high standard. I have no hesitation in recommending them for similar services.

RS Garach

Chief Financial Officer - Grindrod Bank Limited

Grindrod Bank Limited

We can confirm the quality of the professional services rendered by SNG ARGEN Actuarial Solutions during the period of their appointment. The services performed include the review of impairment Models, Financial Guarantees, and Expected Credit Loss.

Denzel Landie

Group Chief Risk Officer - Lesaka Technologies

Lesaka Technologies

Since 2023, SNG ARGEN Actuarial Solutions has provided actuarial and credit risk services to Lesaka, including technical advice on CECL provisions, development of lifetime credit loss models, and an impact analysis comparing adoption with IFRS 9. We found their services to be consistently professional and high quality.