Building from the same risk management techniques insurance companies use for managing risk associated with segregated funds and variable annuities, Nexus Risk Management provides innovative solutions to manage risk and deliver better hedge performance.
Historically, insurers have managed risks associated with variable annuities and segregated fund guarantees using dynamic hedging strategies in which the hedge portfolio backs the general account liabilities of the insurer. The risk charges required for these products are significantly higher than the expected cost of the guarantees and any gains from the hedge portfolio do not flow through to the policyholder's fund value. The focus of the hedging program is typically the change in the value of the guarantee. By designing overlay strategies for the underlying funds and incorporating structured hedges into the dynamic hedging program we are able to deliver superior hedge performance for a desired risk profile.
Nexus Risk Management helps clients develop best practices dynamic hedging capabilities. We believe that companies that are serious about offering products with equity-based insurance guarantees should have the in-house expertise to manage this business.
To help insurers develop the requisite expertise and execute their own dynamic hedging programs, we provide a full suite of customized dynamic hedging tools and applications, expert advice and in-house training.
Nexus Risk Management delivers software applications for companies based on their unique needs and specifications. We will provide you with software tools that are customized to your liabilities and seamlessly integrated with your existing systems. After the tools are built and thoroughly tested, you will own the software along with the source code and user documentation.
Nexus Risk Management provides a wide variety of assistance to financial and non-financial companies that enable them to implement ERM as a strategic decision making framework to run the business and seizing business opportunities while making effective risk-based decisions so companies can get where they want to go and avoid pitfalls and surprises. Learn more...
Nexus Chicago will help any client open the CFTC and SEC regulated accounts necessary for using exchange instruments, will help negotiate clearing and brokerage fees commensurate with other market participants, and will manage all the day to day operations associated with trading “live” exchange instruments including order entry, order management, portfolio management, trade checking, margin maintenance, position limit reporting, collateral selection and sweep cash management. Learn more...