Multi-year licensing agreement enables GEMS to be used by Deutsche Ruck and its subsidiaries, Verband offentlicher Versicherer and DR Swiss

DFA Capital Management (DFA), a New York-based provider of Enterprise Risk Management (ERM) solutions to the financial services industry, has announced that Deutsche Rückversicherung AG, a German reinsurance company, has selected its GEMS Economic Scenario Generator (ESG) for economic and financial modelling.

The decision in favour of DFA was made after Deutsche Ruck conducted an in-depth evaluation of its capabilities. The multi-year licensing agreement will enable GEMS to be used by Deutsche Ruck, its sister company, Verband offentlicher Versicherer, and a subsidiary, DR Swiss in Switzerland.

GEMS ESG enables users to simulate future states of the global economy and financial markets, including the pricing of derivatives and alternative assets. It is used for a variety of applications including Asset Liability Management, Solvency II compliance, financial risk management, and portfolio management, claims the company.

Alexander Metz, chief risk officer, Deutsche Ruck, said: “During our evaluation of the software we found that GEMS was surprisingly easy to use to model our asset portfolio and the portfolio optimization capabilities were very powerful. We were also impressed with the economic modeling expertise and support that is available to us from DFA and with the excellent client references that were provided.”

Lisa Cash, executive vice president, sales and marketing for DFA Capital Management, said: “As a very proactive reinsurance provider in Germany, Deutsche Rück recognized the urgency to replace their internally developed ESG with a more sophisticated one to maintain their competitive advantage in the market. We are pleased that they chose GEMS for their immediate needs in portfolio management and for their ongoing requirements for Solvency II compliance.”