MEAG - Insuring results
In the highly competitive world of international insurance, asset management is becoming an increasingly important means of safeguarding revenues. That’s why in October 1998 Munich Re, the world’s largest reinsurer, decided to set up a dedicated asset management unit called MEAG MUNICH ERGO AssetManagement GmbH.
The new company is responsible for managing assets worth 180 billion euro(as of 2008) for Munich Re’s global insurance network. It was quickly established that purchasing a world-class investment management system was essential to MEAG’s competitiveness.
Selecting the right system
Keen to get an integrated system, with state-of-the-art risk and performance features, MEAG’s Head of IT and Operations, Mr Claudio Peter Prutz set about conducting a comprehensive survey of the investment management systems market.
“We looked at virtually all investment management systems available at the time, some 98 systems in all,” says Prutz. “With further research we were able to narrow this down to 15 systems.”
With the help of external consultants and their own investigations, MEAG finally selected three systems for onsite trials, including SimCorp’s SimCorp Dimension. The trials involved testing the systems under conditions specified by MEAG. In addition, IT staff together with front and middle office personnel from MEAG assessed each system for usability, performance, etc.
After five months of intensive research, reviewing 98 different systems, and with the onsite trials complete, one system stood out a clear favourite: SimCorp Dimension. The high level of integration between the different parts of the system together with its broad functionality made SimCorp Dimension very appealing to MEAG. However, it was the system’s performance in a real world environment that convinced the German reinsurance giant of SimCorp Dimension’s capabilities.
“When we added up the results of the onsite trials it became very clear that SimCorp Dimension is the system which best meets our needs,” says Prutz.
The name behind the system
Although SimCorp Dimension fitted MEAG’s needs, the asset manager had to be sure the vendor behind the investment management system – SimCorp – was as stable and reliable as its software.
“We’re in the business of analysing companies, so of course we looked into SimCorp’s company data, and we were satisfied they would make a reliable partner,” says Prutz.
Confident both SimCorp and SimCorp Dimension were the best solution available, MEAG purchased SimCorp Dimension’s front and middle office functionality. While the Munich Re Group opted to retain its current back office systems, these were integrated with SimCorp Dimension.
Making a difference from day one
Implementation began in June 1999 and the system was ‘live’ by December 1999. And it didn’t take long for SimCorp Dimension to make its presence felt.
“SimCorp Dimension has allowed us to automate many routine tasks, such as producing reports. It is an extremely flexible system,” says Prutz.
Based on the concept of multiple and parallel accounting frameworks, SimCorp Dimension delivers IAS and management reporting features that fit the needs of Munich Re. Thanks to its integrated nature, SimCorp Dimension also makes it possible to automate many traditionally time-consuming tasks, such as compiling performance reports, calculating accounts and reconciling data.
“Middle office staff are extremely happy with the risk management features they have,” says Prutz. “And the front office part of SimCorp Dimension has been well received too.”
Unsurpassed functionality
SimCorp Dimension’s front office combines user-friendly and flexible transaction booking features with cuttingedge analysis tools. The middle office functionality provides users with the very latest in risk management tools – everything from Monte Carlo VaR analyses to setting risk limits and assessing performance. And not to be outdone, SimCorp Dimension’s back office offers a plethora of functions designed to enhance and streamline efficiency in administrative operations. All analysis tools are based on the very latest thinking in finance and economic theory, and all tools operate in real time using real data.
The right attitude
As a relatively new company, MEAG was looking for the latest in investment management technology. They found it in SimCorp Dimension. But in the final analysis it is perhaps the softer parameters of service, dedication and know-how that really impressed MEAG.
As Prutz says;
“SimCorp is a very professional software provider…we’ve found them very, very customer focused.”
