Hedging Toolset

Annuity Risk India provides state-of-the-art software (toolset) for pre-hedge and post-hedge risk analysis. The main goal of the hedging toolset (software) is to help portfolio managers develop robust pre-hedge and post-hedge risk analysis for interest rate hedging.

Interest rate risk emanates from a) fixed-rate liabilities and b) reinvestment risk.  We anticipate a far higher level of interest rate volatility in the months ahead, necessitating an urgent deployment (upgrade) of the hedging program at most life insurers in India. We expect most companies to gain significant benefits from our hedging toolset (software), via:

• dramatically improved accuracy in estimation of interest-rate risk, via detailed scenario analysis.  
• mitigation of interest rate risk and the resulting strengthening of financial position, 
• gains in market share due to enhanced ability to offer competitive rates (higher fixed rates). 

This flagship product offers all of the risk viewpoints that portfolio managers need for doing efficient hedging using FRAs and Bond Forwards. Customized strategies using IRS and IR Futures are also available. While your portfolio managers focus on risk mitigation, our toolset removes all the complexity of data management and ensures your hedge operations are free of errors and frictions.