The Saudi Arabia discount rate for December 2025 ranges from 4.04% (6 months) to 6.21% (30 years), with a 217 bps term premium. Strong trading volume of SAR 36.8 million and 78.5% smoothing alpha indicate high curve reliability. Applicable to IAS 19 employee benefits, IFRS 17 insurance contracts, and IFRS 9 ECL calculations.
When reviewing an actuarial valuation, one of the most closely examined figures is the movement in actuarial gains and losses. These movements, known as remeasurements under IAS 19, can vary significantly from one year to the next and may have a noticeable impact on a company’s financial position. For organisations with long-term employee benefit schemes, […]
The usual approach taken by auditors in reviewing and validating actuarial valuation reports requires a fundamental shift. Often the approach used fails to uncover significant errors. Audit of actuarial valuation reports is a challenging task. Reviewing a piece of work of such a technical nature is a significant ask from anyone who doesn’t have an […]
Setting the discount rate for actuarial valuation correctly is often not very well understood by the reporting companies. This post summarizes some of the most common questions our clients and their auditors ask about choosing the right discount rate. For a complete overview about setting the discount rate, please refer to this post. 1) What is the […]
The employee attrition rate is one of the assumptions the reporting entity, not the actuary, is responsible for setting — and getting it wrong misstates the balance sheet. This guide covers how to set it for gratuity and leave in India and for EOSB schemes in the GCC, including how attrition actually moves the liability under each.
Salary escalation is one of the two financial assumptions that drive an actuarial valuation, and unlike the discount rate it rests almost entirely on management’s own judgement. This guide covers what the standards require, how the assumption must stay compatible with the discount rate, and which salary base to escalate under the new labour codes.
There is more to selection of discount rate than simply looking up the interest rates on internet. Many companies don’t realise the complexities involved and need to do more than they are doing currently. Any actuarial valuation involves the use of a ‘discount rate’, which is used to calculate the present value of future benefits promised […]
Setting the right actuarial assumptions is central to the accuracy of any actuarial valuation. However, there is a general lack of understanding among the stakeholders about how the assumptions should be set. No matter how much care is taken in doing an actuarial valuation, the results could still be useless if assumptions are not set […]