Algorithmics Acquires Actuarial Software Solution Provider VIPitech from Towers Watson

Risk solutions provider Algorithmics (Toronto) announced that it has acquired VIPitech, an actuarial software solution, from professional services firm Towers Watson. The acquisition is part of Algorithmics’ overall corporate strategy to grow its portfolio of risk-aware business applications that support clients’ decision-making and business growth strategies, the company says. According to Algorithmics, this acquisition affirms its commitment to the insurance and pension fund sectors and to maintaining VIPitech as industry-leading actuarial software. The combination of Algorithmics’ risk management and portfolio modelling solutions with VIPitech’s actuarial solutions will enable clients to benefit from the inherent synergies of bringing together two complementary and successful businesses, the vendor says.

Algorithmics acquired VIPitech’s software solutions, intellectual property, infrastructure and the VIPitech team, including development, support, sales and marketing. The terms of the acquisition were not disclosed and it is not expected to have a material impact on Algorithmics’ financial results. The VIPitech solutions have a global client base with strong representation in Asia. They comprise two versions: a desktop modeling tool and an enterprise server version. Insurance companies and pension funds use the solutions to value and manage their business. The solutions support the production of comprehensive risk and value metrics which provide management information to support decision-making and regulatory reporting.

“This acquisition is part of our strategy to extend our solutions beyond risk management into risk-aware applications that help our clients in their business decisions,” said Dr. Michael Zerbs, president and COO of Algorithmics, in a press release. “The addition of VIPitech underscores Algorithmics’ commitment to providing market-leading solutions to pension funds and insurers.”

“Coupling Algorithmics’ range of investment risk and portfolio management solutions with VIPitech’s broad financial modeling capabilities means that we can now provide an integrated approach to asset and liability modelling for the insurance and pension fund sectors …,” said Dr. Andrew Aziz, EVP, buy-side solutions, Algorithmics, in the press release. “Traditionally, institutions have managed their assets and liabilities as distinct silos with vendors developing risk management systems focused on one or the other. The recent market turmoil has driven insurers and pension funds to move towards managing the risk of their entire balance sheet more holistically. It is Algorithmics’ strategy to develop our solutions with this perspective in mind.”

Katherine Burger is Editorial Director of Bank Systems & Technology and Insurance & Technology, members of UBM TechWeb's InformationWeek Financial Services. She assumed leadership of Bank Systems & Technology in 2003 and of Insurance & Technology in 1991. In addition to ... View Full Bio