INSURANCE. Moody s Analytics Solutions for the Insurance Company

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1 INSURANCE Moody s Analytics Solutions for the Insurance Company

2 Moody s Analytics Solutions for the Insurance Company HELPING PROFESSIONALS OVERCOME TODAY S CHALLENGES Recent market events have emphasized the need for proven approaches to risk management. Moody s Analytics offers insurers detailed credit research and award-winning risk management software used by the top financial institutions around the world. RISK MANAGEMENT & COMPLIANCE We allow you to not only see how your risks interact today, but also forecast your future performance under worst case economic scenarios to help you fully understand your risks. Quantify your firm s unique risk profile, including operational risk, market risk, counterparty risk and insurance risk. Obtain reports on RAROC, solvency ratio and balance sheet forecasts. Dynamically compute the position of your cash account by simulating asset and liability cash flows. Change your asset mix by reinvesting surplus according to your specifications Automate the asset mix allocation process using- rules that address market conditions. Monitor and simulate the impact of new business, biometric factors, market movements and other drivers on the income statement by taking advantage of advanced modeling techniques. Delivering Comprehensive Insight for Insurers Reporting Capabilities Calculation Engines Financial Datamart Scenario Management Risk Aggregation Data Management Advanced Modeling Audit and Credit Insurance Datamart Designed to address all three pillars of Solvency II regulation, our solution can be used by any insurance company looking to develop a best-in-class risk management approach. A key characteristic of our risk management solution is its modularity. You can leverage an initial investment in order to incrementally build a robust enterprise risk management solution.

3 MOODY S ANALYTICS GIVES YOU THE SCALE AND SCOPE TO RESPOND TO EVER- INCREASING DEMANDS ON YOUR LIMITED RESOURCES Early Warning Signals Detect credit deterioration for potential defaulters Benchmarking Continually monitor exposures and investments Internal Ratings Build and deploy models unique to your industry Loss Provisioning Calculate recovery and expected loss Pricing Accurately and consistently price credit risk Stress Testing Assess portfolio performance using stress scenarios Economic & Regulatory Capital Determine appropriate capital allocations Regulatory Improve Solvency II compliance INVESTMENT MANAGEMENT We cater to the entire investment workflow from generating investment ideas and evaluating investments to monitoring portfolios and managing risk/return profiles. CATERING TO YOUR ENTIRE ORGANIZATION The Moody s name is synonymous with leadership in analyzing and monitoring credit risk worldwide, but our expertise extends beyond credit risk. We have enhanced our capabilities to address the evolving needs and broader analytical requirements of insurance companies. Easily decide when to put your cash into action. Evaluate investments and anticipate rating actions using Moody s view of the creditworthiness of specific names or deals, the outlook of particular industries, and the potential indicators of change. Assess demand for real estate investments and identify the best opportunities using metroand industry-specific employment forecasts. Leverage our award-winning portfolio management software and correlation analytics to identify dependencies between asset classes. REINSURANCE Looking for alternatives to reinsurance? Moody s can help you understand how catastrophe bonds work and how they are being used by your competitors to free up cash flows. Confidently limit your total losses by selecting the most credit-worthy reinsurers. Evaluate their past and future performance using the same financial data and tools as Moody s analysts. Monitor the credit quality of your reinsurers over time with automated alerts. Choose from a variety of early warning signals based on equity and fixed income market pricing, macroeconomic indicators, financial performance data and agency ratings. UNDERWRITING Our economists provide detailed research and a variety of economic forecasts, including employment and wage forecasts for 510 industry categories. Limit your exposure to claims that tend to arise as a result of bankruptcy and determine your willingness to issue loss-sensitive policies. Easily evaluate the financial stability of your submissions using our bankruptcy forecasting models and detailed credit research. Identify and understand markets with the greatest opportunities and make informed decisions when developing new programs and establishing pricing. We not only cover your liabilities, including products such as traditional life, protection insurance, savings, annuity and unit-linked, but we also address your assets. We offer builtin capabilities for cash-flow generation and pricing across a wide range of instruments.

4 GIVING YOU A COMPETITIVE ADVANTAGE Moody s Analytics gives you the tools, insight and solutions that allow you to assess and manage enterprise risk, make informed decisions and adapt your strategies dynamically as circumstances evolve and opportunities arise. A COMPREHENSIVE ENTERPRISE RISK MANAGEMENT SOLUTION We combine best-in-class quantitative credit and portfolio analysis with regulatory and balance sheet management software. We allow you to manage operational risk, market risk, counterparty risk and insurance risk. No other company has a software suite that offers this level of flexibility and coverage. ROBUST, MODULAR TECHNOLOGY Our products have been designed from scratch by financial engineers and software developers who have extensive academic knowledge and professional experience in finance, mathematics and information technology. Our modular, building-block architecture includes a unified data warehouse, enabling you to adopt the solution through a proven step-by-step deployment approach. A flexible architecture allows you to integrate our software with your other internal systems or view and modify assumptions. MARKET STANDARD IN CREDIT The recent credit crisis has demonstrated the importance of careful credit analysis. Since John Moody published his first manual on industrial securities in 1900, Moody s has been the leading voice in analyzing and monitoring relative investment quality. We combine credit research with quantitative analysis that create early warning systems, economic stress tests that help you understand tail risk, and market indicators that suggest the actions of other market participants. Over 40,000 market participants rely on Moody s for critical input into their investment and risk management decisions. Moody s Analytics voted #1 in Basel II Compliance, Regulatory Risk Capital Calculation and Regulatory Reporting.

5 ESTABLISHED SUCCESS Moody s Analytics award-winning products are used by most of the 100 largest financial institutions around the world because no other firm can offer integrated, best-inclass, customizable solutions to address end-to-end risk management challenges. Since we first developed the KMV EDF (Expected Default Frequency) credit measure in the 1980s, we have remained a pioneer in the sophisticated application of modern financial theory and statistical analysis. We bring our insurance clients the same capabilities that leading commercial banks use to manage their risks, but we have customized our solutions to meet your unique requirements. OUR EXPERTISE: ENTERPRISE RISK MANAGEMENT Recognize and manage your enterprise risk to strike the optimal dynamic balance between minimizing exposures and maximizing opportunities. Our solutions combine best-in-class quantitative credit and portfolio analysis with regulatory and balance sheet management software to maximize your effectiveness and impact. ECONOMIC & CONSUMER CREDIT ANALYTICS Make more informed investment decisions by incorporating macro, regional and industry-specific economic data into your models or workflow. Track and monitor key indicators in real estate, labor markets and consumer balance sheets with a variety of historic databases, forecasts with alternative scenarios, and specialized datasets on home prices and foreclosures. CREDIT RESEARCH & RISK MEASUREMENT Tap directly into Moody s Investors Service ratings and delve into the detailed analyses behind them to improve the efficiency of your team and make better credit investment decisions. We put the best practices of the entire world of credit, economics and financial risk management at your fingertips, helping you compete in an evolving marketplace. STRUCTURED ANALYTICS & VALUATION Analyze, monitor and value your structured finance holdings by combining accurate waterfalls and loan-level data with integrated economic and credit risk models, award-winning analytics and superior product support. Moody s Analytics: Essential Insight Serving Global Financial Markets.

6 About Moody s Analytics Moody s Analytics helps capital markets and credit risk management professionals worldwide respond to an evolving marketplace with confidence. The company offers unique tools and best practices for measuring and managing risk through expertise and experience in credit analysis, economic research and financial risk management. By providing leading-edge software, advisory services, and research, including the proprietary analysis of Moody s Investors Service, Moody s Analytics integrates and customizes its offerings to address specific business challenges. CONTACT US Visit us at moodysanalytics.com or contact us at a location below: AMERICAS [email protected] EMEA [email protected] ASIA (EXCLUDING JAPAN) [email protected] JAPAN [email protected] Copyright 2010, Moody s Analytics, Inc. All Rights Reserved. SP12753/101215/CROSS/TRI-FOLD_001