This paper describes current asset share techniques, examines alternative asset share philosophies and discusses practical issues associated with the calculations. Alternative approaches to smoothing payouts using asset shares are examined. A financial management framework is described which provides information on the financial position of a with-profits fund. A central part of the framework is the concept of risk-based capital. The factors to be considered in determining risk-based capital are described and examples given of the possible capital needs of with-profits business.

The Presidential Address visits some of the current issues affecting the actuarial profession and expresses some personal views of the President. Subjects covered include with-profits policies, life assurance withdrawals and disclosure, Europe, education (concerning both actuarial examinations and continuing professional education), general insurance and pensions. The Address demonstrates the need for proactivity in a world which is continually changing, which is the theme of the 2-year presidency.

The paper traces the history of the development of a with-profit system for a specialist unit-linked office. The marketing problem, to which this was the chosen solution, is discussed and a number of possible future developments are then considered. The second half of the paper is devoted to discussion of the question of matching assets and liabilities for the range of products developed. Although the paper deals with developments in a particular office the authors' intention is to provide a different perspective on the problems associated with conventional with-profit business which will be of more general interest.