Tullett Prebon

Tullett Prebon

May 30, 2012 05:13 ET

Tullett Prebon Information in Cooperation With IDS GmbH-Analysis and Reporting Services, a Company of Allianz, Launches Unique Solvency II Solution

LONDON, UNITED KINGDOM--(Marketwire - May 30, 2012) - Tullett Prebon Information ("TPI"), one of the leading global suppliers of over-the-counter ('OTC') financial data, is pleased to announce the launch of Solvency II Benchmark Curves, a unique, premium service comprising a comprehensive series of benchmark Solvency II curves designed specifically to address the regulatory demands of insurance companies. The service enables risk managers to perform more accurate risk calculations and to better manage capital requirements through accurate valuation while also assisting firms in meeting the reporting challenges they will face following the implementation of Solvency II.

Working in partnership with IDS GmbH - Analysis and Reporting Services, an Allianz company, Tullett Prebon Information has combined its core expertise in the global OTC markets with the experience of an internationally renowned insurance specialist to develop a comprehensive data solution. The service provides tailored and quality assured data curves enabling the calibration of risk models required in the calculation of minimum solvency requirements.

Importantly, the service offers insurance designed liquidity-adjusted and credit-adjusted curves with an emphasis on forward-looking risk management and governance through the extrapolation of data out to 120 years.

The implementation of Solvency II in Europe marks a significant change in the way the insurance and asset management sectors will be regulated. An estimated 3,600 companies in 27 countries across the EU will be impacted by the directive.

Solvency II will increase the amount of capital that EU insurance companies must hold in proportion to the risks they underwrite to reduce the risk of insolvency, and will place new capital, risk management and disclosure requirements on insurance companies. Under the new capital reporting requirements there will be a greater focus on data, accurate valuations of holdings and long-term risk.

The Solvency II Benchmark Curves Service comprises:

  • Base Curve Package including
Swap Zero Curves (including extrapolation methods for maturities up to
120 years, and credit risk adjustments) 68 currencies covering G20, EEA, Asia and Latin America
  • Core Swap Curves
35 countries including G20 and EEA
  • Liquidity Curves
EUR, CHF, CZK, HUF, PLN, THB, TWD, USD
  • Government Curves
36 currencies
  • Corporate Credit Spread Curves
  • Financial Credit Spread Curves
  • Issuer Specific Pfandbrief Curves.

The curves have been constructed using a broad range of prescribed methodologies including Bootstrap, Nelson-Siegel, Nelson-Siegel-Spread, Exponential Spline, Polynomial, Smith-Wilson, Linear/Cubic Spline, 'GDV' model and Nelson-Siegel Long-Term Anchoring and are compliant with the guidelines from EIOPA.

Commenting on the product launch, Frank Desmond, Managing Director of Tullett Prebon Information said:

"Solvency II presents a huge challenge for the insurance and asset management sectors. Solvency II Benchmark Curves offer clients a compelling solution to meeting the challenges posed by Solvency II through the unique combination of Tullett Prebon Information's independent, high quality OTC data coupled with IDS Allianz's in-depth insurance and risk management expertise."

Thomas Vogg, Head of Market Data Services at IDS GmbH - Analysis and Reporting Services, said:

"The service was developed by IDS to assist Allianz in meeting its own risk management and valuation requirements for Solvency II. We had a vast amount of market data, but lacked the OTC data as, like most insurance companies, we do not have direct access to the OTC markets. We selected Tullett Prebon because of the quality of their data and identified a tremendous opportunity to develop the Solvency II Benchmark Curves service."

About Tullett Prebon Information

Tullett Prebon Information (www.tpinformation.com) is a leading provider of independent real-time price information from the global OTC financial and commodity markets. Tullett Prebon Information delivers the highest-quality independent price data using state of the art technologies and data publication standards covering major markets including Rates, Fixed Income, FX and Money, Volatility, Energy, Inflation, Credit and Equities. Tullett Prebon information's data is relied upon by customers in over 40 countries

About Tullett Prebon

Tullett Prebon (www.tullettprebon.com) is one of the world's largest inter-dealer brokers and operates as an intermediary in wholesale financial markets facilitating the trading activities of its clients, in particular commercial and investment banks. The business now covers seven major product groups: Rates, Volatility, Treasury, Non Banking, Energy & Commodities, Credit and Equities. Tullett Prebon Electronic Broking offers electronic solutions to these products.

In addition to its brokerage services, Tullett Prebon offers a variety of market information services through its IDB Market Data division, Tullett Prebon Information.

Tullett Prebon has its principal offices in London, New Jersey, Hong Kong, Singapore and Tokyo, with other offices, joint ventures and affiliates in Bangkok, Frankfurt, Houston (Texas), Jakarta, Luxembourg, Madrid, Manama (Bahrain), Manila, Mumbai, New York, Paris, San Paulo, Seoul, Shanghai, Sydney, Toronto, Warsaw and Zurich.

About IDS GmbH - Analysis and Reporting Services

IDS GmbH - Analysis and Reporting Services (IDS) is an international, managed-service provider focusing on the provision of best-in-class operational investment controlling services for institutional investors and asset managers. IDS offers a wide range of premium solutions for performance and risk analysis, investment compliance and consolidated reports. A broad understanding of their clients' business and technical needs is one of the key elements of the value proposition.

IDS started operations in 2001 as a spin-off from Allianz SE and has since enjoyed sustained growth.

Contact Information

  • Media
    M:Communications
    Charlotte Kirkham
    +44 (0)20 7920 2331

    Maria Souvorov
    +44 (0)20 7920 2327