Insurance Capital for Asset Managers

The companion files

Julian R. Sterling

Every figure printed in the book comes out of these six workbooks, and they come with the book, corrected where they were wrong. Each one closes on a Controls sheet that compares its own calculation to the value printed on the page and ends ALL OK. Around them: five of the same models with the inputs emptied, thirteen working documents to print, forty questions that mark themselves, and three cases the book names and never takes to a number. Nothing is locked, protected or watermarked.

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The six workbooks

They carry the book’s own figures, so that every number it prints can be traced to a live formula. Download these six 78 KB

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The standard formula charge on any asset

Enter a credit quality step and a duration for debt, or pick an equity category. The whole Article 176 spread grid is on the sheet as a table the formula reads, not as a summary of it.

Revised: the grids of Chapters 4, 12, 21 and 24 and Appendix A are computed and checked cell by cell against the page (all 126 cells agree), and the symmetric adjustment is computed from the index. Qualifying infrastructure takes 77 and 92 per cent of the adjustment, not all of it.

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Capital_Charges.xlsx · XLSX · 18 KB

The four candidates, charged and ranked

Their charges, their income, their return on capital, and both rankings side by side, so the reordering the book is about is visible in two cells.

Revised: the further fee of Chapter 24 priced. One point cuts the credit fund’s return on capital by 5.29 percentage points, to 41.80 per cent.

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Mandate_Model.xlsx · XLSX · 10 KB

Annex IV, and what diversification is worth

The correlation matrix in full, the aggregate, the benefit — and a Checks sheet that runs the checks that bind alongside the three everyone uses, so you can watch the useless ones pass.

Revised: positive semi-definiteness is now tested on all 63 principal minors, as the book says, not on the full determinant alone; the upward scenario is priced (€991.9 million, €91.3 million less).

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Aggregation.xlsx · XLSX · 22 KB

What an asset actually costs

Not its standalone charge. The same four funds priced against two insurers of identical size and identical total charges, where two of them swap places.

Revised: the return on marginal capital, and all four together: €171.9 million against €171.1 million summed, the calculation the book says this file makes.

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Marginal_Capital.xlsx · XLSX · 13 KB

Every lever the manager controls

Look-through data, long-term equity status, qualifying infrastructure, matching adjustment eligibility and asset duration — in points and in euros, on one allocation, ranked.

Revised: the eight levers were typed-in constants. They are now formulas, with four new sheets for interest rate risk, the matching adjustment, the volatility adjustment and Article 180. Lengthening the credit fund is worth €4.9 million, not the €4.7 million printed: the shock factors are interpolated for 4.2 years.

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Managers_Levers.xlsx · XLSX · 24 KB

An empty skeleton for a fund of your own

Enter your strategy and read what it costs an insurer to hold, and what it would cost after each move. A second sheet shows it filled in, so the formulas are proven.

Revised: the debt branch computed nothing (the charge read the equity cell only). It now reads the Article 176 table, proven on the credit fund in a third sheet.

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Your_Fund.xlsx · XLSX · 15 KB

Download everything on this page  (202 KB)

Fifteen workbooks, the printable documents and the read-me, in one archive. Each group below can also be downloaded on its own. Last revised 24 September 2026.

Three of them are the model that produced the book, loaded with its figures. Two are working tools meant to be overwritten with your own numbers. The sixth is an empty skeleton.

One figure to know about: every equity charge here is quoted at a symmetric adjustment of zero, which is the index eight percent above its own three-year average and not the index at its average. It is a single blue cell in Capital_Charges.xlsx.

If a Controls sheet ever ends on anything other than ALL OK, the workbook is wrong and I would like to know — the whole point of publishing them is that they can be checked.

The same models, for your own fund

Five of the workbooks with every input emptied. The Controls sheets count what is still missing and test what holds for any inputs.

Chapters 4 to 18

Your fund, your prospect, your levers

The capital charges, the mandate, the aggregation, the marginal cost and the levers, with the same formulas and every blue cell emptied. The regulation stays: the Article 176 table, Annex IV, the equity and property shocks, the interest rate factors. Your_Fund already arrives empty, so it has no blank twin.

The book’s inputs are listed in a text file inside the archive. Type them back in and the book’s figures come back with them: 18.90 per cent, €1083.2 million of market risk, €11.9 million of matching adjustment.

Download the blank set

Blank_Model_Set.zip · five XLSX files · 60 KB

The documents the chapters describe

Thirteen pages to print and use. A4, with margins wide enough for US Letter.

Chapters 3 to 25 · Appendices A to D

Thirteen working documents

The capital charge asset by asset. The tables on one page. The look-through pack field by field, and what look-through is worth to this fund, residue and frequency included. What the buyer is already long. The ranking the committee uses, standalone and marginal. The long-term equity conditions, the matching adjustment tested and discounted, the infrastructure evidence pack per asset. The lever register, the due diligence list decoded, the questions before the pitch, and the pre-meeting check against the twelve failures of Chapter 25.

Download the documents

Working_Documents.pdf · PDF · 13 pages · 34 KB

Forty questions, marked by the file

A workbook that marks itself. Answer in the yellow cells; the marking fills in as you go.

All parts of the book

Forty questions on the book

Seven on the charges, seven on rates, correlation and look-through, seven on the mandate, six on the adjustments and infrastructure, seven on the levers and how the ratio is used, and six on the three cases below. Numbers are marked to a tolerance, multiple choice to the letter, and the score sheet counts your errors part by part.

Download the questions

Forty_Questions.xlsx · XLSX · 17 KB

Three cases the book does not work

New material, not a restatement. Three situations the chapters name and never take to a number. Each case is one workbook: the note is the first sheet, the model is the rest, and a checks sheet closes it. Download the three cases 27 KB

Chapter 10 · Case one

The residue, priced

A pack covering 95 per cent of the credit fund charges 20.41 per cent: exactly 95 per cent of the capital relief, but only 88 per cent of the gain in return on capital. The fund leads the mandate down to 54.1 per cent coverage and is last only below 2.6. Sent once a year at 7.5 per cent turnover a quarter (ADDED), the same pack costs €4.8 million more; a complete annual pack loses to a 95 per cent quarterly one on any book turning over faster than 13 per cent a year.

Chapters 7 and 19 · Case two

The levered property fund

The mandate’s real estate fund at the Chapter 7 loan to value of 40 per cent: the deck quotes 8.33 per cent instead of 6.80, and the return on capital falls from 27.20 to 20.00 per cent, from second in the mandate to third (debt at 4.50 per cent, ADDED). With the charge on the gross value, any positive cost of debt lowers the ratio: to tie, the levered fund would need 11.33 per cent on free debt.

Chapters 7, 19 and 23 · Case three

The dollar share class

The credit fund offered unhedged in dollars costs Calder Life €40.3 million at the margin instead of €26.6 million: the 25 per cent currency charge adds €13.7 million, not €37.5 million, and still takes the return on marginal capital from 50.23 to 33.16 per cent. A hedge is worth up to 3.02 per cent of the fund a year, before the €37.5 million it calls in the stress.

Conventions used throughout

Blue cellsinputs: the book’s figures in the loaded workbooks, empty in the blank set
Blue, no fillthe regulation: the Article 176 table, Annex IV, the shocks and factors
Controls sheetthe last sheet of every workbook: each control states its own verdict, and the file ends ALL OK
ADDEDa figure the book does not give, used in the cases and marked wherever it appears

The workbooks open in Microsoft Excel, LibreOffice Calc, Google Sheets and Numbers; the PDF prints on A4 or US Letter. They use no macros.

What changed, and when

24 Sep 2026The six workbooks corrected; 137 controls, all passing. The levers are formulas now, and lengthening the credit fund is worth €4.9 million (3.24 points), not €4.7 million (3.14): the interest rate factors are interpolated for 4.2 years. Aggregation tests all 63 principal minors; Marginal_Capital computes the joint cost; Your_Fund’s debt branch works. Added: a blank set, thirteen working documents, forty questions that mark themselves, and three cases.

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