AVANTAGE REPLY

Finance, Risk & Regulatory,

Compliance & Treasury

1

Avantage Reply’s Value Proposition

FROM DESIGN TO IMPLEMENTATION AND CHANGE MANAGEMENT

We are a specialised management consultancy fully integrated across our 14 European offices, working

with leading financial institutions and for the regulators themselves. In addition, we leverage the technology

capability of Reply not only to advise on change but also to implement it.

Regulatory

• Change management (implementation of a new regulation)

• Remediation (addressing recommendations from the supervisor)

• Interim support regulatory reporting, stress tests

• Optimisation (regulatory capital, liquidity, etc.)

Strategic, Business and IT Change, M&A

• Strategic & business change (e.g., customer journey, credit ‘re-invention’)

• IT change (e.g., risk and finance systems)

• Data management & reporting

Integrated pan-European footprint

Embedded in the industry and regulatory ecosystem

Technology enabled

Experienced delivery teams

Price policy

• Leading business and regulatory capabilities, leveraging

our experience with best-in-class solutions in other

countries

• Advanced regulatory and supervisory capabilities,

leveraging knowledge gained when working for

the European Central Bank, the Single Resolution Board, etc.

• Demonstrated capability to implement change

in IT systems, leveraging 8,000 technologists

and partnerships with key vendors

• Staffing model drawing on business,

technology and regulatory professionals organised

in ‘SWAT’ teams.

• Operational efficiency resulting in competitive price policy

KEY TO THE QUALITY OF THE FIRM SERVICES

Five Key Differentiators

8.000

› Methodological challenges : On top of the need for different approaches (BBA, VA, PPA), the sheer complexity of the RA & CSM calculations will require key decisions

› Volumes & Architecture : The level of calculations’ detail (cohort, contract, unit of exposure) and the number of entities involved warrant a review of the IT environment for robustness

› Data Governance : The need for auditability, accuracy and completeness of data requires the setup of a new data governance

› Processes : Short closing periods and need for seamless collaboration across departments are a key challenge

› Reporting and Disclosures

Performance MeasureImpact analysis on BS and on forecasted profitability should

be cascaded down in performance tools

IFRS 9Need to classify your assets,

calculate ECL and effect valuation on a regular basis will

be concomitant with IFRS 17

Solvency 2Analysis for the capacity to re-use and align data, processes

and methods used in the regulatory context

WITH TRANSVERSAL IMPACTS THROUGHOUT THE ORGANIZATION

IFR

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IFRS17 is a multidimensional projectIN

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THANKS TO OUR BROAD EXPERTISE IN THOSE AREAS OUR APPROACH IS BASED ON MAXIMUM REUSE OF

THE EXISTING DATA FLOWS, REPOSITORIES, PROCEDURES AND INTERNAL KNOWLEDGE.WE DO NOT CONSIDER IFRS 17 AS A STANDALONE PROJECT ON TOP OF EXISTING FRAMEWORKS.

• See IFRS 17 as an additional legal constraint

• Consider it limited to an accounting view

• Do not consider this will impact daily management or commercial organization

• Do not consider to change performance management

• Also see IFRS 17 as an additional legal constraint but…

• Consider IFRS 17 as new metrics for peer and market comparison

• Acknowledge these new metrics will be influence or drive rewards and bonuses

• Will drive sales taking into account IFRS 17 results

…With and offer scaled upon internal maturity

• Project already in the final roll out phases, started two years ago for some

• First simulations performed with back-testing underway

• Project in the starting phases• Timing is getting critical, but is potentially

mitigated by talk of a delay

Non-quoted Quoted

The maturity around IFRS 17 impacts varies significantly in the market

INTERNAL MATURITY IS STRONGLY TIED TO EACH COMPANY’S PROFILE

AVANTAGE REPLY OFFERS BOTH THE IMPLEMENTATION CAPABILITIES AND SUPPORT TO CFO’S AS WELL AS A POST-IMPLEMENTATION SERVICING, - THE PLATINUM OFFER, CONSISTING IN A HOTLINE, TAILORED FOR THE EXECUTIVE

COMMITTEE, THE COMMERCIAL ORGANIZATION AND BOARD MEMBERS.

More specifically Avantage Reply partners with …

› Tool implementation

› System architecture and interfaces

› Foster collaboration between business and IT

› Transition and first-time adoption

› Adaptation of reporting and consolidation tools

› Disclosure management

› Impact analysis and steering of the performance

› Analyze cross-impacts of IFRS 9 and IFRS 17

› Adaptation of new risk framework.

› Forward-looking view

› Thorough understanding of the impact on figures

› Translate the definitions to the commercial organization

› Organizational alignment

› Data attributes definition

› Data ownership and data governance

› Data lineage and archiving

CFO

CDO

Board MemberALM & Risk

Life Insurance Responsible

CIO

Avantage Reply helps insurance companies implement IFRS 17

DESIGN DATA MANAGEMENT

REPORTINGDISCLOSURES

…

EXCO

New Management language &

performance drivers

ORGANISATION

Commercial priorities

alignment on prospective

results

BOARD

Accountable for the financial statements

• Analysis• Requirement• Parametric• Testing• Integration

• Support data flows and architecture analysis, processes, organization and document

• Support data ownership definition, quality control, lineage and traceability

• Support end to end testing for internal and external reports, FTA and previous years Data

• Support CFO for Change awareness introduction

• Finance performance control mgt

• Change mgt support across the organization for new KPI definition and roll-out

• Handbook and service center

• Trainings • Q&A Board

sessionsOFF

ERIN

G

Internal resources own the project and focus on the crucial parts with consultancy support for execution

Avantage Reply helps insurance companies to implement IFRS17

WE GO FROM TECHNICAL DIAGNOSIS TO INTERNAL DAILY USE AND BOARD ASSISTANCE

• Body shop• Big4• Actuary Specialists• Software Consultants• Niche Players• Avantage Reply

Platinum Offer

IMPLEMENTATION DAILY USETOOLING

DESIGN DATA MANAGEMENT

REPORTING DISCLOSURES

SETUP• FIS• IBM• Willis Towers

Watson• Oracle• Second Floor

• Moody’s Analytics

• SASPAR

TNER

SHIP

…With and offer scaled upon internal maturity

Louis De Meester

l.demeester@reply.com

5 Rue du Congrès/Congresstraar

1000 Brussels

+32 497 35 11 28

www.avantagereply.com