Introduction to Aptitude Software

CONFIDENTIAL - Copyright © Aptitude Software Ltd. 2014-16

Introduction to Aptitude Software

2 May 20232 CONFIDENTIAL. Copyright © Aptitude Software Ltd. 2014-16 2 May 20232 CONFIDENTIAL. Copyright © Aptitude Software Ltd. 2014-16

About Aptitude Software

A microgen plc company (MCGN.L)

• A UK listed company with a global client base, from Lloyds and HSBC to Swiss Re and Met Life

• Vast experience (20+ years) in financial services providing a packaged accounting solution for some of the world’s largest insurers and banks

• Empowering the CFO office with financial insight, control and transparency at granularity levels not previously possible

• Experts in Finance and the delivery of complex regulatory accounting standards (e.g. IFRS, IFRS 9, IFRS 15, IFRS 4 Phase II/17, IFRS 16)

• This is all we do and we are having tremendous success; our latest results show 34% organic revenue growth


Standardization of accounting and

reporting across the global Capital

Markets Business; 40% reduction in close process

Integration of 140 policy admin systems globally. Centralised

accounting rules, single point of control

Creating consistent accounting for all financial products across HSBC’s Capital Markets

business. Enhancing control and providing

greater level of accounting granularity

Streamlining finance architecture to

empower reinsurance business to deliver data-driven insights while dramatically reducing financial

close period

Integration of 90+ source systems into

Finance and automation of manual

adjustments processes, previously

requiring 200+ analysts

Strategic accounting sub-ledger platform

across Lloyds as part of Group Ledger

Simplification Project and move to Cloud

based GL

Empowering Strategic Finance Change

Leading UK bank

US third largest credit card brand

World’s second largest reinsurer

British-based multinational banking and financial services company

One of the largest global insurance, annuities and benefit-program providers

North America’s leading diversified financial services company


Why our clients choose Aptitude Software


• We are finance experts, and finance solutions for Insurance, Banking and Telecoms is all we do.

• We provide:– An “out-of-the-box” solution for the insurance industry with accounting

templates, product lifecycle events, an industry data model and validation rules.

– Event Based Accounting, delivering multi entity, multi currency, multi-GAAP and IFRS postings from a single business event.

– Transaction level, detailed “double entry” Sub Ledger delivering “Books and Records” quality throughout the finance environment from GL, through the sub ledger to the data warehouse.

– Reconciliation by design and full audit trail eliminating manual reconciliation and breaks.

– A solution built by Finance professionals for finance professionals offering user maintained accounting rules, processes and logic.

Challenges for CFOsHow can finance business architecture support strategic objectives?


Typical Insurance EnvironmentFinance has responsibility for but no control over the accounting

Underwriting

Claims

Actuarial

Market Feeds

FX Rates

Pricing

Other Feeds

OFFICE OF FINANCESOURCE SYSTEMS FINANCE REPORTTING

General Ledger and Reporting Infrastructure

Projections and Planning

Disconnect between policy, actuarial and General Ledger

Struggle to comply with current (SII) and impending regulation (IFRS4/9)

Poor financial visibility on earned premiums, commissions, capital forecasts

DATA WAREHOUSE

Calculations

Risk Analytics

Regulatory

Limited Transparency fromreporting to underlying detail

Disparate Data Marts

Manual Reconciliations

Pricing


Best Practice Insurance EnvironmentDeliver regulatory agility, improved financial reporting & controls, capital optimization and data governance

Underwriting

Claims

Actuarial

Market Feeds

FX Rates

Pricing

Other Feeds




DATA WAREHOUSE

Calculations

Risk Analytics

RegulatoryAutomated reconciliation between transaction systems, data warehouses, finance and reporting systems

REGULATORY AGILITY CAPITAL MANAGEMENT IN DETAIL AT SCALE

FINACIAL DATA GOVERNANCEFINACIAL REPORTING ACCURACY AND EFFICIENCY

Ledger – certified data for calculations, analysis and reporting

Achieve Strategic GoalsPricing


Aptitude Insurance ArchitectureDelivering business and regulatory agility with complete control and auditability from detailed financial information

Underwriting

Claims

Actuarial

Market Feeds

FX Rates

Pricing

Other Feeds




DATA WAREHOUSE

Calculations

Risk Analytics

RegulatoryAutomated reconciliation between transaction systems, data warehouses, finance and reporting systems

REVALUATION & CALCULATION ENGINESFI

NA

NC

E

INTE

GR

ATIO

N

LAY

ER

Ledger – certified data for calculations, analysis and reporting

Achieve Strategic Goals

APTITUDE SOFTWARE APPLICATION SUITE FOR INSURANCE

RE

PO

RTI

NG

E

NG

INE

S

MULTI BASIS ACCOUNTING ENGINE

ACCOUNTING SUB LEDGER

Pricing


We enable a best practice finance architecture to equip leading finance teams to achieve their

strategies


Challenges for CFOs

ComplianceRegulatory burden of Solvency II, IFRS 4,

IFRS 9, etc.

Efficiently address regulations

Flexible architecture addresses future reporting

and calculation needs Integrate risk and finance

Cost & CapitalReduce cost of finance

while systemizing capital management processes

Move to T0 or real-time close

Integrate transactions across businesses and

functionsOptimize capital

management with analysis and reporting from high-

quality, integrated data set

CognitionIncreasing CFO

contribution to strategy amidst new business

models

Deliver financial insights at granular levels of detail including profitability of

products, channels, trading desks and other dimensions

Control

Improve financial controls and audit

traceability; improve data lineage and governance

with source-to-post control

Drill down from GL to underlying transaction detail; Control accounting rules &

policy centrally at contract/policy level


What our architecture actually does for you


Benefits of Best Practice Architecture

Systemise reporting processes by delivering detailed granular data and reducing manual workarounds

Perform calculations and valuations accurately, tying together actuarial and risk with finance reporting

Adapt to the changing regulatory environment, IFRS 4/17 and IFRS 9

Deliver detailed ledger-certified data for analysis and reporting

Reconcile different IFRS/GAAP and local accounting bases

Reduce reconciliation cycles– match financial statements to systems of record

Risk Areas

Justifying accounting

Capital management

Regulatory compliance

Accuracy & Efficiency

Accuracy & Efficiency

Regulatory compliance


Case Study: Leading insurance brandEnsuring finance can support growing businesses

Business & Organization

Significant increases in gross written premium

Desire to carve-out and isolate business division

Significant growth of Finance FTEs

Finance & IT

Too much manual processing: reconciliations, mappings,

data manipulations

Business evolves faster than Finance

IT architecture

CFO’s Objectives

• Be a key trusted and value adding business partner

• Adapt to changing business and regulatory requirements

• Consistently provide accurate financial information

• Objectively support business decision making

• Provide value for money


This “finance transformation project” tackled the growing complexity around the internal and external reporting requirements whilst isolating their finance infrastructure and ensuring future regulatory changes were addressed efficiently!


If you want to find out more about how we can help you, please visit our website…

https://www.aptitudesoftware.com/



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Introduction to Aptitude Software