IRIS’ solutions have been implemented in the P&C insurance market so far:

• To dramatically enhance the investment return net of capital charge associated with alternative investments and/or
• As yield enhancement solution to replace cash/money market or short dated T.bills in the context of “trapped assets” and posted collateral

IRIS’ solutions provide investors with exposure to absolute return strategies (offering a potential for extra yield of c.3% to 5% vs govies) that are enhanced with capital and downside protections, aiming at reducing substantially the Solvency Capital Requirement (SCR) imposed by the regulator (e.g. Solvency II in Europe) or by rating agencies.

Why IRIS solutions for General Insurers make sense

1.     Solutions have been validated by UK Regulator (PRA and The Society of Lloyd’s):

• Up to a significant share of total investment portfolio i.e. 35%
• Solutions can accommodate large transactions involving several $Bn of AuM
• Initial long and tedious validation process (can last 8 to 10 months) can now be fast tracked

2.     Simple “all in one” solution 

• Management of the financial risk is performed at the asset level (volatility control mechanism & put overlay strategy)
• All rules based and systematic
• Solution can be wrapped in a simple structure such as a UCITS fund with daily liquidity

3.     Efficient solution with significant impact

• It allows a significant solvency or rating capital relief [30 + points depending on the model used] together with an enhancement of the investment return net of cost of capital
• It can be tailor made to fit specific objectives in terms of solvency or rating capital, target volatility, selection of engine of performance, …

4.     Unique set up that cannot be delivered by either Asset Managers or Investment Banks

• Engineered by IRIS through a genuine “solution driven” approach
• Won several Awards including 2013 “Innovation of the year” Award from Insurance Risk Magazine