Outsourced solutions for the Life Insurance Industry. New possibilities to support your business..

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1 Business leadership at your fingertips Outsourced solutions for the Life Insurance Industry New possibilities to support your business.. BSB Convention day Brussels, 5 June 2013

2 Outsourcing in the life insurance industry Facts and trends Solfia outsourcing solutions for life insurers Conclusion Slide 2

3 Global landscape Life Insurance Companies operate in a complex landscape Sell More Competition for business is fierce Global economic downturn Reduce Cost Insurer Generate Profit Low Investment returns from premiums Comply with Regulations Slide 3

4 Outsourcing in the life insurance industry Some trends Financial players are increasingly focusing on core competencies and have realized that outsourcing enables this Clear trend towards added-value outsourcing Bespoke development Packages ITO SaaS BPO services Slide 4

5 Outsourcing in the Finance industry Key drivers... this is exactly what Solfia offers to the finance industry! Slide 5

6 Outsourcing in the life insurance industry Facts and trends Solfia outsourcing solutions for life insurers Solfia in a nutshell ITO+ for financial institutions Closed Books management for life insurers Dedicated funds management for life insurers Conclusion Slide 6

7 Solfia in a nutshell Solfia S.A. is a wholly-owned subsidiary of Solfia s infrastructure hosting partner is Solfia offers outsourcing solutions and services based on BSB software : Soliam for private & institutional portfolio management 60+ references Solife for life insurance policy administration 24 references Solfia has the status of Professional of the Financial Sector (PFS) and is supervised by the CSSF (Lux regulator) Slide 7

8 Solfia outsourced solutions matrix ITO+ for Financial Institutions Closed Books for Life Insurers Portfolio Mgt for Private Wealth managers Dedicated Funds for Life Insurers Added Value Services Platform & Production support Platform & production support Middle-office BPO services Middle-office BPO services Platform & production support Standard BSB Software Specific onboarding project Single-tenant software Specific onboarding project Single-tenant software Standard onboarding project SaaS multi-tenant & standardized software Technical Infrastructure ITO Dedicated infrastructure ITO Dedicated infrastructure ITO Shared infrastructure ITO Slide 8

9 Solfia in a nutshell References (since 1 st of January 2012) ITO+ for Financial Institutions Closed Books for Life Insurers Portfolio Mgt for Private Wealth managers Dedicated Funds for Life Insurers Clients in Luxembourg 5C Clients in France Slide 9

10 Outsourcing in the life insurance industry Facts and trends Solfia outsourcing solutions for life insurers Solfia in a nutshell ITO+ solution for financial institutions Solution for Closed Books management Solution for dedicated funds management Conclusion Slide 10

11 ITO+ solution for financial institutions ITO+ for Financial Institutions Added Value Services Platform & Production Support Standard BSB Software Specific onboarding project Single-tenant software Technical Infrastructure ITO Dedicated infrastructure ITO Slide 11

12 ITO+ solution for financial institutions Key components ITO+ for Financial Institutions State of the art outsourced infrastructure & ITO services Scalability Monitoring Added Value Services Platform & production support Standard BSB Software Standard onboarding project Single-tenant software Security (Access, Data) Real time Data Redundancy (Distant sites ) Backup & Disaster Recovery Plan Technical Infrastructure ITO Dedicated infrastructure Slide 12

13 ITO+ solution for financial institutions Key components ITO+ for Financial Institutions Leading software Added Value Services Standard BSB Software Platform & production support Standard onboarding project Single-tenant software Rich functional scope Strong integration capabilities with external systems Web based front-end Technical Infrastructure ITO Shared infrastructure Slide 13

14 ITO+ solution for financial institutions Key components ITO+ for Financial Institutions Experienced migration teams Added Value Services Platform & production support Standard BSB Software Specific onboarding project Single-tenant software Proved Data migration tools Proved Methodology Technical Infrastructure ITO Shared infrastructure Slide 14

15 ITO+ solution for financial institutions Key components Outsourced dedicated Funds solution for life insurance Added Value Services Platform & production support Implementation of new software releases Standard BSB Software Standard onboarding project Multi-tenant & standardized software Outsourced Service operations Daily follow up tasks (Batches, interfaces, ) Hotline Technical Infrastructure Shared infrastructure Incident management with SLA s Slide 15

16 ITO+ solution for financial institutions Evolution of client s responsibilities On premises ITO+ Solfia / Clearstream SOLFIA CLIENT CLIENT Business Services Layer Business configuration... Business Processes Layer Operation support Layer Policy /Portfolio management Middle-office tasks Batch management Interfaces monitoring... Application infrastructure (Oracle, Jboss,...) Operation system ( Windows, Linux,...) Infrastructure Layer Hardware Devices (Servers,...) Network (Routers, switches, Monitoring) Data center (protection, Airco, Power supply,...) Slide 16

17 ITO+ solution for financial institutions Pricing principles ONE TIME SETUP FEE YEARLY RECURRING FEE Infrastructure implementation Fixed price for : - Infrastructure - Software - Operation Services Migration Training Slide 17

18 ITO+ solution for financial institutions Key client benefits Security and efficiency of operations Cost reduction at constant scope (20-30% expected) Team focus mainly on client business, rather than on technical-related tasks Slide 18

19 Outsourcing in the life insurance industry Facts and trends Solfia outsourcing solutions for life insurers Solfia in a nutshell ITO+ solution for financial institutions Solution for Closed Books management Solution for dedicated funds management Conclusion Slide 19

20 Solfia outsourced solutions matrix ITO+ for Financial Institutions Closed Books for Life Insurers Portfolio Mgt for Private Wealth managers Dedicated Funds for Life Insurers Added Value Services Platform & Production Support Platform & production support Middle Office BPO services Middle Office BPO services Platform & production Support Standard BSB Software Specific onboarding project Single-tenant software Specific onboarding project Single-tenant software Standard onboarding project SaaS Multi-tenant & standardized software Technical Infrastructure ITO Dedicated infrastructure ITO Dedicated infrastructure ITO Shared infrastructure ITO Slide 20

21 Closed Book / Run-off solution Non strategic products have become a fact of life Investment result is under pressure in a low interest environment Increased life expectancy challenges the underwriting result Products become non-strategic along the whole risk / savings spectrum and books are eventually closed Slide 21

22 Closed Book / Run-off solution The cost burden of legacy products Increasing cost per policy (diminishing book size) Costly changes (e.g. new regulation) Costly legacy platforms Slide 22

23 Closed Book / Run-off solution Evolution of client s responsibilities CLIENT On premises Business Services Layer Business configuration... Closed Book solution Business Processes Layer Policy management Operation support Layer Batch management Interfaces monitoring... Solfia / Clearstream SOLFIA CLIENT Application infrastructure (Oracle, Jboss,...) Operation system ( Windows, Linux,...) Infrastructure Layer Hardware Devices (Servers,...) Network (Routers, switches, Monitoring) Data center (protection, Airco, Power supply,...) Slide 23

24 Pricing model Principles ONE TIME SETUP FEE YEARLY RECURRING FEE Implementation project Migration (Fixed price per migrated contract) Fixed price per contract for: - Infrastructure - Software - Operation Services Training Slide 24

25 ITO+ solution for financial institutions Key customer benefits Security and efficiency of operations Cost reduction at constant scope Cost flexibility linked with actual business Team focus mainly on client business, rather than on technical-related tasks Slide 25

26 Outsourcing in the life insurance industry Facts and trends Solfia outsourcing solutions for life insurers Solfia in a nutshell ITO+ solution for financial institutions Solution for Closed Books management Solution for dedicated funds management Conclusion Slide 26

27 Solfia outsourced solutions matrix ITO+ for Financial institutions Closed Books for Life Insurers Portfolio Mgt for Private Wealth managers Dedicated Funds for Life insurers Added value Services Platform & Production Support Platform & production support Middle Office BPO services Middle-office BPO services Platform & production Support Standard BSB Software Specific onboarding project Single-tenant software Specific onboarding project Single-tenant software Standard onboarding project SaaS multi-tenant & standardized software Technical Infrastructure ITO Dedicated infrastructure ITO Dedicated infrastructure ITO Shared infrastructure ITO Slide 27

28 Solfia solution for dedicated funds The global landscape Insurer SaaS Platform Secured Internet Access Regulator Dedicated Contracts Client A Dedicated Contract Client B Custodian Bank 1 Custodian Bank 2 Discretionary management by internal or external asset managers Slide 28

29 Solfia solution for dedicated funds Key benefits for Life insurers Outsourced dedicated funds solution for Life insurance Middle-office BPO services Multi-custodian information integration Added Value Services Platform & production support Order & Transactions reconciliation (automated or manual) Securities Master file Mgt Standard onboarding project Standard BSB Software Multi-tenant & standardized software Technical Infrastructure Shared infrastructure Client and CAA reporting SLA s on recurring deliverables Slide 29

30 Pricing model Principles ONE TIME SETUP FEE YEARLY RECURRING FEE Implementation project Fixed price per dedicated fund Migration Training Slide 30

31 Solfia solution for dedicated funds Middle-office desk Services catalogue Data collection Extra services Data reconciliation Hotline and support Client reports Solfia Middleoffice desk Compliance checks Fees management Regulatory reports NAV calculation Accounting Slide 31

32 Solfia solution for dedicated funds Middle-office desk Processes & indicative SLA s Slide 32

33 Solfia solution for dedicated funds Middle-office desk Data collection service Data collection Extra services Data reconciliation Hotline & Support Client reports Solfia Middleoffice desk Compliance checks Fees management Regulatory reports NAV calculation Accounting Slide 33

34 Solfia solution for dedicated funds Middle-office desk Data collection service Data collection Policy administration Positions (UC) Transactions cash 6 Secured connexion 1 Market Data (IDC as a standard) Transactions Asset Positions Asset VNI 5 Interfaces 2 Referentials Prices General Ledger 4 3 Custodians Prices Unquoted Asset Accounting Entries Transactions security & cash Corporate Actions Positions security & cash Price Slide 34

35 Solfia solution for dedicated funds List of custodians (updated continuously) ABN AMRO BANK (BE) BROWN BROTHERS HARRIMAN (LU) KBC (LU) ABN AMRO BANK (LU) CACEIS (Natixis Paris) (FR) KBL (LU) ANTIN EPARGNE PENSION (FR) CAGRICO - CRÉDIT AGRICOLE SA (FR) KEYTRADE BANK (BE) AXA BANQUE (BE) CBC BANQUE (BE) LAZARD FRÈRES BANQUE (FR) BANK VAN BREDA (BE) CITIBANK (BE) LMP BANQUE MARTIN MAUREL (FR) CITIBANK (US) MORGAN STANLEY (US) BANQUE NATIONALE (BE) CM-CIC Securities (FR) MORTGAGE SERV SRL ROUMANIA (RO) BANQUE TRANSATLANTIQUE (FR) COMMERZBANK (LU) NATIXIS (FR) BARCLAYS CAPITAL (BE) CRÉDIT SUISSE (CH) NATIXIS BANK (LU) BCE CRÉDIT SUISSE (LU) NPBI (FR) BDL (LU) DEGROOF (BE) PFPC (IE) BELFIUS (BE) ETHIAS (BE) PICTET (CH) BIL (LU) HSBC (FR) (EX CCF) PICTET (LU) BNP (FR) ING ARDENNES PRÉVOYANTES - ING (BE) ROTHSCHILD (MO) BNP PARIBAS FORTIS (BE) ING AXA - ING (BE) SGBP (FR) BONY - BANK OF NEW YORK (US) ING BANK (BE) SGBT (LU) BONY TRUST - BANK OF NEW YORK (IE) ING WINTERTHUR - ING (BE) STATE STREET (FR) BP2S (FR) JPMORGAN (BE) SWISSLIFE BANQUE PRIVÉE (FR) BP2S (LU) JULIUS BÄR (CH) UBS (BE) BPERE (LU) KBC (BE) UBS (CH) Slide 35

36 Middle Office desk Focus on NAV calculation service Data collection Extra services Data reconciliation Hotline & Support Client reports Solfia Middleoffice desk Compliances check Fees management Regulatory reports NAV calculation Accounting Slide 36

37 Middle Office desk NAV calculation service NAV calculation NAV CALCULATION NAV CONSISTENCY CONTROL NAV TRANSFER TO LIABILITY SYSTEM Monthly Just after Transactions integration Positions reconciliation Compliances check Fees computation Report on discrepancies Slide 37

38 Solfia offering Middle-office desk Reporting services Data collection Extra services Data reconciliation Hotline & Support Client reports Solfia Middle Office Desk Compliances check Fees management Regulatory reports NAV calculation Accounting Slide 38

39 Middle-office desk Regulatory report & client report Client reports Regulatory reports REGULATORY REPORT PRODUCTION 1 st level control Diffusion QUATERLY CLIENT REPORT PRODUCTION 1 st level control Diffusion Quaterly reports Limits per issuer Limits per asset manager Global limits Quarterly report P&L report Yearly report Annual report Slide 39

40 Outsourced solution for dedicated funds Some flavor Some flavor of Solfia platform for Private wealth portfolio management Slide 40

41 Outsourcing in the life insurance industry Facts and trends Solfia outsourcing solutions Conclusion Slide 41

42 Conclusions Clear trend towards outsourcing within the life insurance industry Solfia offers a global solution to support the business of life insurers, from the technical infrastructure to M-O BPO added-value services Solfia offers global cost effective solution that can be set up with excellent Time to Market The solution comes with rich functionalities available online Slide 42

43 Business leadership at your fingertips Solfia HQ 7A, rue des Mérovingiens Bourmicht L-8070 Bertrange T F Contact persons : Massart Paul Managing Director SOLFIA T [email protected] Rossi Bernard Head of Solfia solutions T [email protected] Anne Thiel Sales Manager T Anne.Thiel@ bsb.com

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