// definition
ALM
Asset-liability management
Short definition
Managing investments and obligations together. For an insurer, ALM aligns the amounts, timing, currencies and sensitivities of assets with promised policy benefits while planning for liquidity needs. Policyholder surrenders and other contractual options can change the expected cash flows.
risk atlas
Knowledge map
Intuition
An investment must help fund a future payment in the currency and at the time it falls due.
Related analyses
- Japanese savings and global borrowing costsReinvestment choices, currency hedges and liability schedules.
Related guides
Primary sources
- Bank of Canada, liquidity risks at life insurersALM, duration, currency risk, surrenders and liquidity needs.