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Teradata and DFA Capital Management Inc. Announce Partnership


DAYTON, Ohio, and PURCHASE, New York – Teradata, a division of NCR Corporation (NYSE: NCR), and DFA Capital Management Inc. (DFA) today announced that they are jointly investing in a strategic partnership to bring an innovative enterprise risk and capital management solution to the primary carriers and reinsurers in the property, casualty, life and annuity sectors of the insurance industry for North America and Europe.

Teradata and DFA are integrating their industry-leading technologies to deliver a comprehensive data and analytical solution for the rapidly emerging enterprise risk and capital management requirements of the insurance industry. The joint solution will enable companies to realize real competitive advantage through greater accuracy in strategic decision-making, regulatory and ratings agency compliance, and the allocation of capital and resources. The integration of DFA’s Advanced Decision and Value Simulation Engine (ADVISE) and General Economic and Market Simulator (GEMS) with Teradata’s industry-leading data warehouse technologies and capabilities marks a major breakthrough for fulfilling these stringent requirements.

“Our whole-company modeling approach not only satisfies new guidelines, but provides customers with higher quality information for decision-making. With this joint offer, we provide unmatched capabilities to optimize return on risk across the enterprise and therefore increase the capital efficiency of our clients,” says Markus Rohrbasser, chairman and president of DFA Capital Management, Inc.

“We are excited to partner with DFA to offer the insurance market a new and unmatched opportunity for risk and capital management,” said Jim Donovan, vice president, Global Industry Solutions, Teradata. “With centralized data and powerful analytic software, insurance companies will be capable of identifying the best opportunities for maximizing the return on capital while meeting regulatory requirements with confidence. Companies that deploy the solution will be able to realize measurable uplifts in the return on capital, develop focused strategies for funding the balance sheet, and create positions to reduce the costs of reinsurance.”

The Teradata and DFA solution will provide insurance companies with new capabilities to comply with regulatory bodies and ratings agency requirements. It will enable companies to implement the best practices established within Solvency II, a European-developed regulatory model. Solvency II was designed to ensure adequate policyholder protection, taking into account current developments in risk management, finance techniques, international financial reporting and best practices.

“The partnership between DFA and Teradata allows insurance companies to actively manage their data and risk analytics at a granular transaction level, as well as on a macro level for the balance sheet and income statement. The combination of DFA and Teradata is prudent and timely because it is designed to enable companies to achieve superior risk management practices that address strategic, competitive and regulatory challenges,” said Dr. Bob Mark, chief executive officer of Black Diamond Risk Enterprises, a provider of corporate governance and risk management consulting and transaction services.

DFA’s ADVISE includes all of the functionality required to model a multibusiness-line insurance company and the regulatory and economic environments in which it operates. This includes such features as U.S. Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), local statutory accounting, risk-based capital, tax accounting, rating agency metrics, managerial reporting and other analysis.

DFA’s GEMS generates empirically validated realistic scenarios of global economic behavior and world financial market performance. A forward-looking simulation model underpinned by advanced modeling and estimation technology, GEMS captures the key short and long-term drivers of simultaneously evolving interrelated economies, and the appropriate foreign exchange rates between them. This robust model makes transparent the real-world risks that have the potential to threaten a company’s profitability or solvency and empowers the insurance enterprise to structure and test hedging strategies in real-world economic and capital market scenarios.

The components of Teradata Enterprise Risk Management solution include Teradata® Warehouse 8.2, a suite of hardware and software that provides an authoritative and comprehensive data platform for decision-making. In addition, the solution is supported by Teradata’s Financial Services Logical Data Model and a suite of professional consulting services. Teradata’s data management solution addresses the challenging issues of data integration and management across the enterprise.


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