AEGIS Selects DFA Capital Management for Risk Management Software Solution



    DFA Capital Management Inc. (DFA), the leading provider of
    Enterprise Risk Management solutions to the insurance industry,
    announced today that Associated Electric & Gas Insurance Services
    Limited (AEGIS), a non-assessable mutual insurance company, has agreed
    to purchase its modeling and analysis software, ADVISE(TM) 4.0., as
    well as its economic scenario generator, GEMS(TM).

    AEGIS will be using ADVISE (Advanced Decision & Value Simulation
    Engine) and GEMS for asset liability management, reinsurance
    acquisition alternatives and underwriting profitability analysis. The
    tools will also be used to stress test the Company´s capital adequacy
    under a broader range of scenarios than available in its current
    modeling alternatives. Additionally, ADVISE will be used for
    multi-currency and multi-line of business modeling, while GEMS will
    allow the Company to better model the global economic environment in
    which it operates.

    "We are extremely pleased to have selected DFA," said John J.
    Denman Jr., Chief Financial Officer of AEGIS. "Their advanced
    technology is unique in its ability to model both assets and
    liabilities and we found the caliber of economic modeling that is
    provided through GEMS is unparalleled. Their solution will enable us
    to more thoroughly analyze our various lines of business and simulate
    numerous financial risk scenarios that could have a potential impact
    on them."

    Denman noted that prior to working with DFA, AEGIS used an
    internal risk management model, but that as the business evolved the
    company realized the need for more complex capabilities. "We believe
    DFA´s tools will play a key role in helping us more easily identify
    better business opportunities by simulating in a very realistic and
    detailed manner the numerous economic and business dynamics within our
    organization," he said.

    A New Level of Modeling

    With ADVISE 4.0, AEGIS can now create economic scenarios that
    contain insurance premium and loss models, test reinsurance
    alternatives and identify optimal investment allocations in any
    currency mixture for the economies available within GEMS. "The result
    is the ability to more accurately simulate foreign operations and
    their risks by automatically generating foreign exchange conversions
    and measuring their effects," said Lisa Cash, EVP, Sales and Marketing
    at DFA Capital Management Inc.

    She added that the greater realism in modeling complex business
    structures will allow AEGIS to more accurately allocate its capital,
    and help to more closely align planning, financial reporting and
    performance management systems.

    "We´re excited to have the opportunity to work with AEGIS," said
    Cash. "They´re in a great position and we´re confident we can help
    them build a unique and competitive advantage."

    About DFA Capital Management Inc.

    DFA Capital Management Inc. is the market leader in dynamic
    financial analysis software for the insurance and financial services
    industries. DFA´s software-based financial and risk management system
    is a foundation for competitive advantage for any insurance company
    with multiple business lines, reinsurance activities, rapidly changing
    business portfolios, and significant premium volumes.

    Founded in 1999, DFA Capital Management Inc. is headquartered in
    Purchase, N.Y., with offices in Germany and Switzerland.

    About AEGIS

    Directly and through alliances, AEGIS offers a full range of
    sophisticated insurance and risk management products and services,
    including excess, fiduciary and employee benefits liability,
    professional liability, excess workers´ compensation, property and
    financial products.