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.
