RiskMetrics Group, a provider of risk management and corporate governance services to the global financial community, has announced that it will supply SBI AXA Life Insurance Company with market and credit risk systems.

SBI AXA Life Insurance has selected RiskMetrics Group’s RiskManager and CreditManager applications to provide risk management and reporting services for its life insurance business in Japan.

SBI AXA Life Insurance believes that it will be able to capitalize on RiskMetrics Group’s transparent gold standard methodology and trusted systems for purposes of reporting, that is disclosure to the Financial Services Agency, as well as for internal risk reporting to the risk management committee and at executive management meetings.

Yohsuke Watanabe, executive officer and general manager for compliance and risk management at SBI AXA Life Insurance, said: Insurance companies can only have a complete picture of their financial risk if the market and credit risk functions are integrated. That’s why it’s critically important for us to be able to rely on a risk management company that offers both credit and market risk solutions founded upon transparent methodologies.

Kiyoshi Niki, general manager of RiskMetrics Group in Japan, added: SBI AXA’s choice underlines the buy-side’s move to an integrated approach to both credit and market risk management, which enhances total return for insurance companies and pension funds alike.