Solvency II significantly raises insurance companies' capital requirements, with the aim of reducing market risk. Firms will have to take special care to optimize the cost of regulatory capital generated by the composition of their asset portfolios. As a consequence, they will need to implement a specific process and tools in order to assess and control market risk of the daily oversight of asset allocations while producing the new regulatory reporting required by European authorities.

"We are resolute in our commitment to support our clients in managing their financial investments," commented François Pradel, Head of Product Offering for Asset Management and Life Insurance at Linedata for Southern Europe. "We have designed an open and modular solution to meet their different needs which are to present asset portfolios in a way that harnesses the assets' economic substance by applying a transparent approach to UCITS and complex products; to produce regulatory reports on assets and implement analysis and simulation tools. To fulfill these needs, we must first meet two cross-business requirements. First, institutional investors need all the necessary market data available for calculation and reporting. Second, they must set up an audit trail by ensuring full traceability so that they can provide the regulator with qualitative data."

After two years of in-depth analysis by work groups comprising leading market players, Linedata has enhanced Linedata Chorus, its fund accounting and administration solution, as well as Linedata Nile, its securities database administration service, in order to meet the needs of its clients. Linedata Nile provides each and every client with all the necessary market data for identifying and modeling financial instruments via a single and integrated stream covering all accounting and regulatory reporting and steered by enhanced control strategies. This stream includes look-through data collected from asset management firms. In this respect, Linedata contributes to the standardization of reporting via cross-business initiatives.

The solution also manages the production of regulatory reports and allocation analyses, exposure to risk and financial results forecasts. All the recorded data is fed into an audit trail so that the calculation processes are fully traceable, thereby meeting regulatory authorities' qualitative requirements.

This front-to-back offering from Linedata is complemented by the Linedata Longview portfolio management solution and optimizes portfolio management by integrating accounting as well as regulatory constraints during the investment process. The entire solution is available in an ASP hosting infrastructure, used by 95% of Linedata's clients.

Thierry Soret, Managing Director for Asset Management, Savings and Insurance at Linedata for Southern Europe stated, "In light of the uncertainties weighing on execution measures and time frames, we have taken an early approach to this initiative through collaboration with our clients, in order to provide them with timely and practical solutions. This new offering stems from our desire to bring an integrated and modular solution with a platform that combines the best of our financial, accounting and technological skills to the French market."