Press Release Summary:
Designed for US and European insurance industry, ADVISE(TM) v3.11 promotes better business decisions and risk management via accurate model projections. It delivers Collateralized Mortgage Obligations as natively modeled asset class and models rating agency A.M. Best's calculation of BCAR score. In addition to addressing German-specific issues, software also models separate holdings, investment strategies, benchmarks, and goals in distinct portfolios.
Original Press Release:
DFA Capital Management Inc. Releases ADVISE(TM) Version 3.11
PURCHASE, N.Y., Jan. 9 -- DFA Capital Management Inc., a leading provider of Dynamic Financial Analysis software solutions to the insurance industry, today announced the release of ADVISE Version 3.11 for production use worldwide. This latest release introduces Collateralized Mortgage Obligations (CMOs) as a natively modeled asset class and features enhancements that increase accuracy and breadth of coverage for both U.S. and European users.
"We introduced Version 3.0 in 2002 to provide customers with enterprise- wide software that would enable them to make better business decisions in the complex world of insurance," said David Weiss, Chief Technology Officer of DFA. "Now we've added major functionalities for our users and are looking toward to the spring 2007 release of ADVISE 4.0. We continue to enhance our product to fulfill our customers' needs and provide them with greater value."
In addition to CMOs as a native asset class, ADVISE 3.11 encompasses significant updates made in previous versions. Key functionalities added to the software include:
-- BCAR (A.M. Best Capital Adequacy Ratio) -- Models rating agency A.M. Best's calculation of the BCAR score, enabling users to examine the future volatility of their BCAR score and analyze the impact of different management actions on their BCAR score.
-- Investment Management by Fund -- Models separate holdings, investment strategies, benchmarks and goals in distinct portfolios, allowing a more accurate overall portfolio model, adding significant value to investment analysis.
-- German Changes -- DFA has made many changes to ADVISE to reflect German-specific issues such as local solvency, accounting and tax regulations. Most importantly, ADVISE now allows the German customer to model life and non-life insurance products on the same platform - a completely new capability which speaks to the pursuit of whole-company modeling.
-- Improved GEMS(TM) Equity Model - Features full stochastic volatility with jumps and creates a more realistic depiction of stock market volatility over short and long time horizons, while still properly correlated with interest, credit and mortgage markets, allowing customers greater accuracy in modeling.
These enhancements allow ADVISE users to manage risk more effectively by increasing the accuracy of model projections, translating into more highly optimized decisions. ADVISE's unique full-company modeling program allows risk managers, actuaries, and other decision-makers to make the most informed choices about the future by giving them the information they need.
Designed from the ground up as an ERM platform, ADVISE has provided tactical and strategic business advantage to insurance institutions in the U.S. and Europe since 2002. An Advanced Decision and Value Simulation Engine, ADVISE provides a degree of detail and flexibility that allows managers to use their own, realistic, assumptions about the world, leading to confidence in the model and its use as a true decision-support system.
As a result of DFA Capital Management Inc.'s focused expertise, ADVISE enables its users to get closer to fully integrated ERM than any other alternative. According to a well known industry analyst, the proven benefits of integrated ERM are:
-- Alignment of the strategic aspects of risk with day-to-day operational activities
-- Facilitation of more transparency for investors and regulators
-- Enhancement of revenue and earnings growth
-- Control of downside risk potential
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 several business lines, reinsurance activities, rapidly changing business portfolios, and significant premium volumes.
Founded in 1999, DFA Capital Management, Inc. is headquartered in Purchase, NY, with offices in Germany and Switzerland. To learn more about DFA Capital Management Inc., visit www.dfa.com/ or call +1 914-701-7200.
Gina M. Sorice