Algorithmics and Barrie & Hibbert Announce Strategic Partnership to Deliver the Insurance Industry With Economic Capital Solutions Under Solvency II

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Algorithmics and Barrie & Hibbert, leading vendors in enterprise risk management and economic scenarios respectively, today announced they have formed a strategic partnership to provide a comprehensive solution to insurance companies to allow them to measure, manage and report on economic capital management under Solvency II regulations.

Algorithmics and Barrie & Hibbert, leading vendors in enterprise risk management and economic scenarios respectively, today announced they have formed a strategic partnership to provide a comprehensive solution to insurance companies to allow them to measure, manage and report on economic capital management under Solvency II regulations.

The strategic partnership builds on the success of Algorithmics’ innovative risk management solutions for insurance companies, in particular its award-winning replicating portfolio techniques, and Barrie & Hibbert’s market-leading Economic Scenario Generator (ESG) and industry expertise.

The new solution will benefit insurance companies of all sizes that wish to take a robust approach to the calculation and management of economic capital, their market consistent financials and the associated risk exposures within a consistent, integrated enterprise risk management (ERM) and scenario framework spanning both assets and liabilities.

The solution provides for improved precision, increased frequency and greater diligence in the process; it includes comprehensive financial modeling, risk aggregation, standardized replicating portfolios for all major markets, market data and updated economic scenarios.

Dr Andrew Aziz, Executive Vice President of Risk Solutions at Algorithmics, said: “This strategic partnership formalizes our strong working relationship with Barrie & Hibbert developed during projects for major European insurance companies. Together, we provide a market leading service which will accelerate the industry’s ability to meet the internal models approach under Solvency II and, importantly, allow individual clients to leverage their mandatory investment in compliance, to the benefit of the daily management of capital in their business.”

Andrew Barrie, Executive Director and Founder, Barrie & Hibbert, added: “Many insurers already have strong processes, using our scenario generation models, for economic and regulatory capital valuation. The challenge for Solvency II in general, and the use of internal models in particular, is extending these processes, filling the gaps, creating greater transparency, providing full audit trails, and facilitating ‘real time’ risk management. Working with Algorithmics will mean that insurers will get a market leading solution to the challenges of building their ERM frameworks.”

This solution is the first product of the partnership and subsequent plans for the evolution of products will address the specific requirements of the wealth management and pension sectors.

For more information about Algo Risk for Insurance, please visit: http://www.algorithmics.com/EN/solutions/myindustry/insurance.cfm

For more information about Barrie & Hibbert’s ESG, please visit:
http://www.barrhibb.com/

For further information please contact:

Heather Smith, Senior Communications Manager, Algorithmics (UK) Ltd
Direct line +44 (0) 20 7392 5820 Mobile +44 (0) 7515 974223
E-mail Heather.smith(at)algorithmics.com

Andy Frepp, Director, Barrie & Hibbert
Direct line +44 (0)131 625 7025 Mobile +44 (0)776 895 3402
E-mail andy.frepp(at)barrhibb.com

Notes to Editors:

Algorithmics is the world's leading provider of risk solutions. Financial organizations from around the world use Algorithmics' software, analytics and advisory services to help them make risk-aware business decisions, maximize shareholder value, and meet regulatory requirements. Supported by a global team of risk experts based in all major financial centers, Algorithmics offers proven, award-winning solutions for market, credit and operational risk, as well as collateral and capital management. Algorithmics is a member of the Fitch Group. http://www.algorithmics.com

Barrie & Hibbert Founded in 1995, Barrie & Hibbert are leaders in modelling financial market risk, providing stochastic models, economic scenarios and risk management products to insurance and financial services groups around the world. Currently there are offices in Edinburgh, London, New York and Hong Kong.

Barrie & Hibbert’s innovative financial modelling software is used by around two thirds of the European insurance industry, and is increasingly used by major international financial services organisations in insurance, pensions and wealth management.

Barrie & Hibbert’s Head Office is based in Edinburgh, with clients in Europe, North America, Africa and the Far East.

Fitch Group is the parent company of Fitch Ratings, a global ratings agency committed to providing the world's markets with independent, timely and prospective credit opinions. With 49 offices worldwide, Fitch Ratings’ global expertise spans across capital markets in over 150 countries. Fitch Ratings is headquartered in New York and London.

The Fitch Group also includes Fitch Solutions, a distribution channel for Fitch Ratings products and a provider of data, analytics and related services; and Algorithmics, the world's leading provider of enterprise risk solutions.

The Fitch Group is a majority-owned subsidiary of Fimalac, S.A., headquartered in Paris, France.

For additional information, please visit http://www.fitchratings.com http://www.algorithmics.com and http://www.fimalac.com

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Heather Smith
Algorithmics
+44 0 20 7392 5820
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Andy Frepp
Barrie & Hibbert
+44 0 131 625 7025
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