IFRS17 Solution – Product Factsheet

Aptitude IFRS17 Software

Aptitude Software

Aptitude Software provides software solutions that enable finance professionals to run their global businesses, forecast
decision outcomes, and comply with complex regulations. Combining deep finance expertise and IP rich technology,
Aptitude provides finance leaders with a range of tools to transform their business.
Aptitude has served the office of finance for over 20 years, delivering financial control and insight to create a world of
financial confidence for its global clients. Aptitude Software supports businesses with combined revenues approaching $1
trillion. Headquartered in London, Aptitude Software is an operating company of Aptitude Software Group plc.

In addition to its IFRS17 Solution, Aptitude Software provides a number of capabilities, including:

IFRS17 Comply
Aptitude LDTI Solution
Aptitude Lease Accounting
Engine
Aptitude Calculate
Aptitude Accounting Hub
A pre-configured, IFRS 17 version of the software that contains standard calculations, accounting
rules and disclosures. Comply is designed for insurers looking for a quicker route to compliance.
Using the Aptitude Accounting Hub (AAH), it can address LDTI compliance requirements and
challenges including the additional detail required for disclosures and the need for controls and
traceability.
Aptitude Lease Accounting Engine (ALAE) enables compliance with the leasing standards and
covers the most complex lease accounting scenarios for both lessees and lessors.
A scalable, standalone, multi-purpose finance calculation tool and allocation engine to empower
finance business users to perform complex and multi-dimensional calculations, conversions and
allocations based on high volumes of transactional and operational data feeds from multiple
source systems.
Aptitude Accounting Hub is a finance management solution based around a powerful sub-ledger
to enable compliance, finance control, business agility, operational efficiency and strategic
foresight for complex and data voluminous processes.

Aptitude IFRS17 Solution - Key Features

A purpose-built, IP-rich, IFRS17 solution, ideal for global insurers requiring bespoke configuration for compliance and
strategic modernisation. The solution incorporates all the calculations required to become compliant and includes data
consolidation and advanced accounting subledger capabilities to drive additional business value. This is a strategic finance
solution for insurers offering compliance, control and business insight and a rich data foundation for wider finance
transformation.

❖ Multi-GAAP reporting ❖ Operate and report down to contract level

❖ Multi-entity processing ❖ Simulation and forecasting

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 IFRS17 Solution – Product Factsheet
Aptitude IFRS17 Software
❖ Granular cost and insurance allocations ❖ Calculation of transition balances

❖ Extensible sub-ledger ❖ Integrated analytical reporting

❖ Automated general ledger interface ❖ Custom report writer capabilities

Product Description
The Aptitude IFRS17 Solution is purpose built to enable global insurers to meet the IFRS17 requirements and can be further
configured to incorporate multiple GAAPs and Solvency II if required. It leverages proven, insurance-specific operational
finance software which is already used in many global insurers where consolidation and multi-entity processing is a must.
It’s an ideal platform to base a full finance transformation programme upon or to meet bespoke and complex processes.

Aptitude's IFRS17 Solution is under-pinned by a high performance, scalable data storage model and highly extensible
subledger. This provides the structure and flexibility to solve many of the complex requirements of IFRS17 (and additional
GAAPs as required), including how to carry out multiple, parallel calculation, modelling and reporting activities at the same
time. It provides the performance and capability to run calculations and cost allocations and then store and report data at
any level including contract by contract. It produces finance accurate data at a consolidated level and utilises an automated
general ledger interface to make posting back to the general ledger efficient and robust.

Upon transition from IFRS4, Aptitude can calculate the transition balances under the full retrospective, modified
retrospective and fair value approaches. Differing scenarios can be modelled using the simulation and forecasting
functionality.

Management, financial and analytic reporting can be obtained through its in-built visualisation tools, custom report builder
and integrated analytics reporting. Meanwhile, there is a full line of sight to drill back to granular source data and provide
visibility of assumptions, calculations, adjustments, rules, and transformation points within the data flows.

Aptitude integrates with existing actuarial and financial reporting environments using ODBC or RESTful and incorporates ETL
functionality for data loads supplemented by Excel, CSV and a data entry interface if required.

The solution has support for all of the prescribed measurement approaches including General Measurement Model (GMM)
Premium Allocation Approach (PAA) and the Variable Fee Approach (VFA) and includes a configurable pre-built IFRS17 chart
of accounts with illustrative examples.

Aptitude’s IFRS17 Solution can be deployed on-premise or cloud and can even be provided as a fully managed service.

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 IFRS17 Solution – Product Factsheet
Aptitude IFRS17 Software

Product Specification
Installation Options Business Logic Revenue and Cashflows
Data aggregation and allocation CSM calculation, release, unlocking,
Cloud, single tenant Y Y Y
configurable logic reconciliation

Derives a portfolio and/or UofA, that an CSM release: Through an externally derived
Cloud, multitenant Y Y Y
insurance contract pertains to "earning" pattern

Capability to calculate the degree of

CSM release: Through externally provided total
Software as a Managed Service Y profitability of an insurance contract at Y Y
and remaining coverage unit amounts
initial recognition

Track and recalculate the degree of CSM release: Determine the weighting of the
On-premise Y profitability of a UofA on subsequent Y benefits provided by insurance coverage and Y
measurement investment-return

IFRS17 group assignment to portfolio /

Breadth Y CSM release: Based on passage of time Y
cohort

PAA: Interest accretion on the liability for

General (re)insurance contracts Y Onerous contract test Y Y
remaining coverage

PAA: Revenue recognised using an externally

Life (re)insurance contracts Y PAA eligibility check Y Y
derived "earning" pattern

PAA: Revenue recognised using an externally

Capture and calculate data at various
Other insurance contracts Y Y provided total and remaining coverage unit Y
aggregation levels
amounts

Investment contracts with discretionary Supports sub-group or contract level

Y Y PAA: Revenue recognised using passage of time Y
participation features measurement

Establishment, changes and reversal of loss

General Measurement Model Y Cost and insurance allocations Y Y
component (LC)

Systematic allocation of loss component based

Premium Allocation Approach Y Customisable validations Y Y
on % expected recovery of losses

Establishment, changes and reversal of loss

Variable Fee Approach Y Validation at point of entry Y Y
recovery component (LRC)

Core Components Pre-built business validations Y Cash flow generation Y

Business user interface for BAU changes Unit of account with single foreign- Choice to expense acquisition cash flows as
Y Y Y
(code free) denominated currency cash flows incurred

Unit of account with multiple foreign-

Guided configurable workflows Y Y Acquisition cash flows two level impairment test Y
denominated currency cash flows

Pre-packaged solution/functionality - Reinsurance Risk Adjustments

Pre-packaged illustrative examples and Calculation using a confidence level technique
- Proportional coverage Y -
reports (e.g.: VaR)

IFRS17 accounting rules and postings

Y Non-proportional coverage Y Calculation using cost of capital methodology -
engine

IFRS17 sub-ledger intelligence Y Simple calculation as a % of a reference measure Y

Option to disaggregate the change for non-

Simulation and forecasting Y financial risk between Service Result and Finance Y
Expense

Multi-GAAP reporting Y

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Multi Entity Considerations
Organisational hierarchy and consolidation
Multi-entity processing
IFRS17 Solution – Product Factsheet
Aptitude IFRS17 Software
Journal Features Analysis of Movement
Ability to isolate changes related to initial
recognition and subsequent measurement for a
Y Period accounting and cut-off Y Y
given UofA, when both are applicable during the
same reporting period
Reporting period posting re-runs using Ability to isolate effect of changes in fulfilment
Y Y Y
deltas and reversal methodologies cash flows per "actuarial model" step

Intergroup reinsurance contracts and

Y Zero balancing Y Discounting
eliminations

Entities belonging to a group may be

Y Manual adjustments to journals Y OCI finance costs option Y
configured differently

Capture discounted or undiscounted cash flow

Group interim reporting Y FX translation and revaluation Y Y
data

Normalisation of input discount curves using linear

Data Upload Methods Configurable year end rollover Y
interpolation
-

Supports accident year and underwriting year

Data entry interface Y Extensible sub-ledger Y Y
reporting

ETL capabilities Y Automated general ledger interface Y Weighted average methodology for new business Y

Excel input Y Reporting Effective yield curve (asset returns) Y

CSV input Y Pre-built IFRS17 chart of accounts Y Transition

Other Y Configurable IFRS17 chart of accounts Y Calculation and modelling of transition balances Y

Option to apply Period-to-Date interim

Integration Capabilities reporting policy choice
Y Full retrospective Y

Configurable chart of accounts mapping

ODBC Y Y Modified retrospective Y
to general ledger

RESTful Y Contract level reporting Y Fair value Y

SOAP - Pre-built disclosure reporting Y System Connectors

Other SFTP Pre-built analytical reports Y ReMetrica -

Training and support Custom report writer capabilities Y Moody's -

User training materials Y Audit Logging R35 -
Administrator training programme Y Audit logging Y R-code -
Administrator training materials Y User login Y

Technical support Y User activity Y

IFRS17 functional support Y Data changes Y

Vendor ISO Certifications Data processing Y

ISO 27001 Y Metadata changes Y

ISO 9001 - Data governance changes Y

ISO 14001 - Transparency of underlying calculations -

Note that this product is highly configurable - the vendor may be able to provide functionality that is not stated as specifically included
above.

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