The Pension Insurance Corporation, a newly-accredited insurance company participating in the UK bulk annuity buyout market, has chosen to deploy Algorithmics' Algo Risk to manage the risk of its assets and liabilities.

The Pension Insurance Corporation (PIC) aims to become the industry leader in the provision of pension insurance to UK defined benefit pension funds and annuity providers. Algorithmics believes that its software will assist PIC in achieving this objective as Algo Risk provides functionality that helps clients to achieve their goals of increasing investment returns, complying with regulations and remaining competitive.

Algo Risk provides unparalleled functionality through a combination of advanced portfolio analysis and valuation, risk management and risk-based decision support across the organization, in real-time. The software’s underlying Mark-to-Future architecture is both asset class and risk factor agnostic, enabling it to span all holdings and investment strategies across the enterprise.

We are delighted with the addition of the PIC to the growing number of insurance clients who are now using Algo Risk to allocate their assets more effectively against their liabilities, said Dr Andrew Aziz, managing director of risk solutions at Algorithmics. With growing pension deficits, and increasing regulatory pressures to manage them, this has been a particularly strong trend in the insurance and pension fund industries. At the same time, it is also no coincidence that liability-driven investments are arguably one of the hottest investment products currently available in the market.