Italy’s Generali Group has signed a license for Conning’s GEMS Economic Scenario Generator to improve its strategic asset allocation process.
The software will be used to produce real world economic scenarios needed to support the investment team’s strategic asset allocation optimisation process, the group said.
Conning’s GEMS software simulates future states of the global economy and financial markets, using economic models and providing full market risk and asset class coverage.
Its financial models ensure that the scenarios provide realistic representations of extreme events and market dynamics during and since the 2008 financial crisis.
In addition to strategic asset allocation solutions, GEMS ESG is also used by insurers for Solvency II economic capital modelling, market-consistent embedded value calculations, stochastic liability and capital valuation, and derivative and hedging strategies.
“We chose Conning because we required sophisticated economic models with the granularity to support investment decision-making and the flexibility to calibrate to our in-house views,” advised Francesco Martorana, head of Group ALM & SAA at Generali. “GEMS software’s built-in calibration tools allow us to model targets and feed our investment optimisation process.”
“Another important factor in this decision was Conning’s experience and service that they have delivered to Generali’s German subsidiary which has used GEMS software for several years within its strategic asset allocation process,” commented Hamish Bailey, head of European Business Development for Conning’s Risk & Capital Management Solutions business.