The Pension Insurance Corporation (PIC), a newly-accredited insurance company participating in the UK bulk annuity buyout market, has selected an in-house deployment of Algo Risk to manage the risk of their assets and liabilities.
PIC aims to become the industry leader in the provision of pension insurance to UK defined benefit pension funds and annuity providers.
Algo Risk is an easy-to implement solution that provides unparalleled functionality through a combination of advanced portfolio analysis and valuation, risk management and risk-based decision support across the organization, in real time. This helps clients to achieve their objectives of increasing investment returns, complying with regulations and remaining competitive. The solution's underlying Mark-to-Future architecture is both asset class and risk factor agnostic, enabling the solution to span all holdings and investment strategies across the enterprise, whether the products are exchange-traded or over-thecounter.
"We believe that risk management is an essential component of the insurance solution we bring to our clients. We looked at a number of systems and found that Algorithmics understood the complex needs of our business," says Tracy Blackwell, Investment Partner at PIC. "Algo Risk gives us the toolkit to intelligently manage the risk of our assets. The ability to stochastically model our assets as well as our liabilities gives us a better insight into our overall risks and capital management."
"We are delighted with the addition of the PIC to the growing number of insurance clients who are now using Algo Risk to allocate their assets more effectively against their liabilities," says Dr Andrew Aziz, Managing Director of Risk Solutions at Algorithmics. "With growing pension deficits, and increasing regulatory pressures to manage them, this has been a particularly strong trend in the insurance and pension fund industries. At the same time, it is also no coincidence that liability-driven investments are arguably one of the hottest investment products currently available in the market."