Algorithmics Incorporated

Algorithmics Incorporated

June 06, 2006 09:30 ET

Algorithmics Provides Risk Management Solution for the Insurance Industry: Algo Risk to Support Variable Annuities Management

TORONTO, ONTARIO--(CCNMatthews - June 6, 2006) - Algorithmics, a recognized leader in enterprise risk management solutions, recently announced at ARC 2006 in Toronto that its Algo Risk solution has been enhanced to incorporate insurance liabilities along with investment assets for enterprise risk analysis. Variable annuities are currently being modeled in an Algo Risk implementation for a large international insurance company.

"We developed this offering in response to the insurance industry's need to manage economic and regulatory capital, explore alternative hedging strategies, and develop an enterprise risk strategy encompassing both assets and liabilities," commented Dr. Andrew Aziz, vice president of market risk and buy-side solutions for Algorithmics. "The speed of new product innovation and a rapidly changing regulatory and ratings environment has forced insurance firms to look beyond the traditional systems for calculating risk, and that is where Algo Risk comes in. Algo Risk is the first enterprise risk solution for the insurance industry that addresses risk oversight, portfolio management, and liabilities modeling, leveraging a single platform."

Algo Risk is an enterprise risk management solution that combines true product lifecycle planning with tactical day-to-day analytics. Based on the award winning Mark-to-Future architecture, Algo Risk provides stochastic valuation models for variable annuities with both living and death benefits. The models are easily customized to cover dynamic lapses and partial withdrawals. Coupled with the existing asset models and what-if functionality, the solution provides risk managers with new way to analyze the risk in their variable annuity portfolios. Algo Risk provides the ability to develop a flexible and proprietary risk management framework in accordance with an organization's own methodology for product development, pricing of new products, hedging and projection, valuation, and attribution reporting.

About Algorithmics

Founded in 1989, Algorithmics is recognized as the world's leading provider of enterprise risk management solutions and services that enable financial institutions to effectively understand and manage their financial risk. Algorithmics has over 300 clients, including more than 70 of the 100 largest financial institutions in the world. Algorithmics was voted as the leading enterprise risk solution provider for Basel II, market risk, credit risk, operational risk and collateral management in Risk magazine's 2005 Technology Rankings. Algorithmics is a member of the Fitch Group. www.algorithmics.com.

About Fitch Group

Fitch Group is the parent company of Fitch Ratings, a leading global rating agency committed to providing the world's credit markets with accurate, timely and prospective credit opinions. Fitch Ratings is dual-headquartered in New York and London, operating offices and joint ventures in more than 50 locations and covering entities in more than 80 countries. Fitch Group is a subsidiary of Fimalac, S.A., an international business support services group listed and headquartered in Paris, France.

(C) 2006 ALGO, ALGORITHMICS, AI & design, MARK-TO-FUTURE, ALGO CAPITAL, ALGO COLLATERAL, ALGO CREDIT, ALGO MARKET, ALGO OPVANTAGE, ALGO RISK, and ALGO SUITE are trademarks of Algorithmics Trademarks LLC.

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