Old Mutual Business Services Inc. to use Barrie & Hibbert’s Economic Scenario Generator

11 October 2006

Old Mutual Business Services Inc. (OMBS), one of the many companies that comprise Old Mutual Financial Network, is to enhance its financial modelling and risk management processes by licensing scenario sets generated by the Economic Scenario Generator (ESG) financial modelling software developed by financial risk consultancy, Barrie & Hibbert. This builds on the existing relationship with the Old Mutual group where Old Mutual Life Assurance Company (South Africa) Limited already licenses Barrie & Hibbert’s ESG.

The ESG is increasingly used by major international financial services organisations serving the insurance, investment, pensions and savings sectors. Barrie & Hibbert’s market leading modelling and consulting services are now increasingly in demand as the sector’s appetite for rigorous market risk measurement tools and management advice has developed.

Sandy Duncan, Vice President, Project Services at Old Mutual Business Services, said:

“With the increasing sophistication required in financial projections, OMBS is pleased to partner with Barrie & Hibbert for the supply of high quality economic interest rate and equity scenario sets. Their financial projections will be used in the modeling of our US life and annuity business on a go-forward basis.”

Andrew Barrie, Chief Executive, Barrie & Hibbert, said:

“The risk management questions now being asked in the insurance market are very different from those of a few years ago. In particular, there is more focus on the size and nature of the risks created and how they impact different stakeholders. The tools needed to answer these questions require an appropriate level of sophistication and granularity. We believe our ESG model helps insurance firms and their advisers reach more measured and robust decisions for optimal management.”

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