Benefits to Insurers

In a continuing low yield environment, insurers have been forced to search for other sources of income. This has led them to diversify into leveraged loans, alternatives and equities, as well as consolidate or restructure businesses to increase operational efficiency and reduce costs. At the same time, regulatory changes are requiring insurers to re-evaluate enterprise risk management processes and systems. Whether assets are managed in-house or by external investment managers, staying on top of portfolio and operational risks while aggressively managing costs are a significant challenge.

Aladdin can help insurers effectively manage their investment portfolios. Our services include comprehensive multi-asset class risk analysis across externally and internally managed assets, a full investment management platform, and outsourced middle office and investment accounting services.

Moreover, BlackRock's extensive industry knowledge and relationships benefit our team and clients by allowing us to:

  • Stay attuned to key industry trends and senior management concerns.
  • Understand the unique constraints and challenges insurance companies face (economic, regulatory, rating agency, accounting, tax).
  • "Have a seat at the table" with insurance regulators, rating agencies and major industry groups.
  • Provide practical advice and solutions informed by actual experience managing and modeling insurance company portfolios.

See how Aladdin provides solutions to insurers' key challenges

Low interest rate environment leads to asset diversification, yet current systems don't support multi-asset risk analysis and investment management.

Aladdin provides a multi-asset solution across traditional fixed income, equities, alternatives and leveraged loans.

  • Comprehensive risk model with over 2,000 factors across asset classes.
  • Ability to analyze risk across internally and externally managed portfolios relative to asset liability (ALM) benchmarks.
  • Supports the full end to end investment process across security types

Pressure to increase earnings and enhance shareholder value.

Aladdin simplifies risk and investment infrastructures, which can lead to increased efficiency and reduction in costs.

  • Aladdin supports global consolidation of investment/risk platforms to minimize overlapping technology and processes, and to increase global consistency and transparency.
  • Ability to provide cashflow projections under a variety of scenarios to support income projection and income sensitivity analysis, investment activity planning, and economic capital analysis.
  • Supports management of new business lines (e.g., expanding into third party asset management).
  • Ability to offer a holistic outsourcing service, including middle office and investment accounting outsourcing services.

Need to meet requirements of various regulatory regimes.

Aladdin provides a variety of analyses and functionality to support the regulatory needs of insurers.

  • Analyses used to support Solvency II reporting, S&P and A.M. Best regulatory testing, and value-at-risk (including regulatory methods).
  • Cash flow forecasting to support economic capital calculation and validation and regulatory reserve adequacy testing.
  • Support for central clearing guidelines under Dodd-Frank for internally managed derivatives.
  • Investment accounting services to meet financial reporting requirements under multiple cost bases.
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