New York, NY – December 15, 2014 – Ohio National Financial Services, a family of companies committed to helping individuals, groups and businesses meet their financial goals by providing the best value in insurance protection and wealth accumulation options, has adopted Numerix as its platform of choice for the economic risk management of its variable annuity (VA) rider products. Numerix has quickly become the leading provider of sophisticated analytics for the risk management of complex path dependent products, such as variable annuities. The flagship insurance product, Numerix Leading Hedge, provides functionality for scenario generation, valuation and risk profiling enabling it to be used in applications including hedging, pricing, product design, enterprise risk management and actuarial valuation of VA obligations.
“The Numerix platform plays a central role in elevating our risk management infrastructure and analytics. We have realized significant advances in flexibility, expandability, reduced run-time and transparency with the adoption of Numerix Leading Hedge,” said Michael DeWeirdt, Senior Vice President, Financial Risk Management at Ohio National.
Numerix Leading Hedge: Flexibility for Tomorrow’s Risk Management Needs
“In leveraging the Numerix Leading Hedge Production system, Ohio National is not only able to advance the way that it approaches the hedging of its products but it has also acquired a powerful level of flexibility to create, analyze and test risk management enhancements and new product designs within the same framework that is used for day-to-day risk management,” said Steven R. O’Hanlon, Chief Executive Officer & President of Numerix. “With the Leading Hedge framework in place, Ohio National has acquired the ability to effectively risk manage future products, as well as its full range of legacy products.”
Calculation Speed & Performance
High performance was a critical consideration in the selection of Leading Hedge at Ohio National. The Numerix application is able to produce updated valuations and liability greeks for Ohio National’s entire block of VA liabilities multiple times during the trading day in an industry where overnight is the norm. Additionally, from the standpoint of flexibility, potential expansion needs and redundancy, it is a significant benefit that Numerix Leading Hedge is Microsoft Azure capable.
“Numerix has been on the forefront of cloud strategy within financial services for many years, enabling its analytics solutions to be consumed as an IAAS offering either adapting to a public cloud, like Microsoft Azure or to a private cloud via an institution’s corporate infrastructure. With the first mover advantage in this area, our clients, especially in the Insurance space have transformed the way their business is conducted. Insurers get the consistent valuation and analytical capabilities they need, not only for pricing and structuring variable annuity products, but also for measuring value-at-risk and other risk factors as well as for asset and liability management,” Steve O’Hanlon concludes.
Numerix is the award winning, leading independent analytics institution providing cross-asset solutions for structuring, pre-trade price discovery, trade capture, valuation and portfolio management of derivatives and structured products. Since its inception in 1996, over 700 clients and 90 partners across more than 26 countries have come to rely on Numerix analytics for speed and accuracy in valuing and managing the most sophisticated financial instruments. With offices in New York, Boston, Chicago, San Francisco, Sao Paulo, Vancouver, London, Paris, Milan, Stockholm, Frankfurt, Dubai, Beijing, Mumbai, Hong Kong, Seoul, Singapore, Sydney, Tokyo and Taipei, Numerix brings together unparalleled expertise across all asset classes and engineering disciplines. For more information please visit www.numerix.com.
About Ohio National
Tracing its corporate origins to 1909, Ohio National markets a variety of insurance and financial products through more than 50,000 representatives in 47 states (all except Alaska, Hawaii and New York), the District of Columbia, Puerto Rico and through affiliated operations in South America. Additional subsidiaries operate in New York and Connecticut. As of Dec. 31, 2013, its affiliated companies have $38.8 billion total assets under management. Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation and National Security Life & Annuity Company in New York. Named Cincinnati's "#1 Top Workplace" (large category) by the Enquirer Media (June 2010, 2012, 2013 and 2014). Ohio National has more than 1,000 associates. Visit www.ohionational.com for more information.
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