M&G Investments has agreed a strategic collaboration with Ortec Finance, a provider of investment modelling solutions for insurers.
The collaboration enables M&G to leverage Ortec Finance’s advanced Economic Scenario Generator (ESG) and Strategic Asset Allocation (SAA) tooling when bringing tailored investment strategies to their insurance clients, the statement today (11 June) said.
M&G said its strategic collaboration with Ortec Finance underscores its commitment to innovation and excellence in serving insurance clients. By harnessing the power of advanced analytics and scenario modeling, M&G continues to deliver investment solutions that help insurance companies navigate uncertainty and achieve their long-term financial goals.
Ortec Finance’s GLASS tool is “industry-leading for insurers and designed to provide comprehensive economic scenarios alongside asset allocation insights. By incorporating these advanced tools into its investment solution design, M&G can offer insurance clients enhanced risk management capabilities and tailored investment strategies that align with each insurer’s specific objectives and constraints. The platform will also be used in other parts of the business as M&G Investments look to build out end-game pension solutions and strategies for other institutional clients.”
Building on M&G’s in-depth fundamental analysis approach to investing, utilizing Ortec Finance’s advanced modelling techniques enables M&G to help insurers optimize their asset allocation decisions, whilst capturing the regulatory constraints and capital requirements they face.
Working directly with each insurer, M&G aims to quantitatively highlight the risks & benefits of various investment strategies within the context of clients’ risk-return objectives and overall balance sheet position.
“We are excited to collaborate with Ortec Finance to enhance our investment offering for insurance clients,” said Russell Lee, head of global insurance solutions at M&G. “As insurers face increasingly complex challenges in managing their investment portfolios, we recognize the importance of providing robust, innovative, technical solutions that keep pace with evolving regulatory change and enhance our competitive edge in the market.”
“We are delighted to support M&G Investments in building innovative solutions to help meet the evolving needs of their clients,” said Hamish Bailey, head of insurance & investment management and managing director UK, at Ortec Finance. “The power and flexibility of the GLASS system enables the customization of Strategic Asset Allocation to suit the unique requirements of clients. By integrating insurance-specific metrics, it ensures that key factors related to risk management are fully considered in the modelling process.”
