Confuturo Adopts Bloomberg Mars Collateral Management

NEW YORK and SANTIAGO, Chile, Aug. 15, 2017 /PRNewswire/ -- Confuturo S.A., a leading annuity and life insurance company with $8.5 billion assets under management, is the first Chilean company to implement Bloomberg's Multi-Asset Risk System (MARS) Collateral Management tools. The technology helps financial institutions and large corporations meet more stringent global regulations on over-the-counter (OTC) derivatives trading to prevent financial crises.

Under the new rules, companies need to value their derivative contracts with each counterparty, calculate the amount of collateral required, agree on the value, make or receive the payments daily, and update their records much more frequently than ever before. The requirements for firms to now exchange initial and variation margins were agreed to by global regulators and are being phased in. The next key implementation milestone is September 1, 2017.  

"Confuturo's Board of Directors asked for a new initiative on market risk last year," said Juan Pablo Cabrera Antezana, Confuturo's Head of Market Risk, who was named to oversee the program. "The regulations on margin requirements are complex, far-reaching and will significantly increase administrative burdens," he said, adding, "Bloomberg's MARS Collateral Management solution is just what we need to meet the requirements."

Phil McCabe, Bloomberg's Global Collateral Management Product Manager, said, "Confuturo is showing strong leadership on this, as corporations and investment firms globally will need to comply. Our collateral management is a world-class solution that will help manage the risk process, provide more transparency, and increase confidence in the market."

"This latest set of requirements under the U.S. Dodd-Frank act and the European Market Infrastructure Regulation (EMIR) will have global impact, so Latin American firms will be affected," said Geraldo Coelho, Bloomberg's Head of South America sales, adding, "Bloomberg's MARS Collateral Management has all the tools needed to meet their obligations and manage risk in an efficient manner."

MARS Collateral Management has built-in portfolio reconciliation tool to communicate and resolve disputes. It calculates, aggregates and displays margin calls across products and legal entities and generates independent derivative and collateral valuations and liquidity risk scenarios. It can be used to manage the day-to-day margin call process, including sending margin calls, booking collateral, and managing interest payments. Executives can track their exposures, as well as collateral positions and agreement terms in real-time.

Subscribers to the Bloomberg Terminal can find more information at {RISK <GO>}.

About Compañía de Seguros Confuturo S.A.
In 2013, Inversiones La Construcción S.A. (ILC), investment department of the Cámara Chilena de la Construcción (CChC), has become the controller for Insurance Companies CorpVida and CorpSeguros, acquiring 67% of CorpGroup Vida Chile S.A. assets.

Two years later, Corpvida changed its name and brand to Compañía de Seguros Confuturo S.A., which consolidates its merger with CChC through ILC.

By the end of 2015 and the beginning of 2016, there has been an important increase in its capital, into UF 2.000.000, which confirms the confidence and the support from the Cámara Chilena de la Construcción, through the ILC, to these companies. Last year, Inversiones La Construcción S.A. (ILC) took over 100% of both companies, Confuturo and Corpseguros.

By mid-2016, Confuturo and CorpSeguros acquired 10 malls "Espacio Urbano" from retailer Walmart, becoming the insurance company with the largest portfolio investments in real estate in the country. This transaction is the most important in Chile´s real estate history. For further information, please visit: https://www.confuturo.cl/

About Bloomberg
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