Morningstar UK, an independent investment research firm, has partnered with UBS Delta to provide fund-level Solvency II market risk Solvency Capital Requirement (SCR) calculations to asset managers.
Under the deal, UBS Delta will provide Morningstar with SCR score calculations based on its risk analytics expertise and Morningstar’s data, reported Bobsguide.
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The calculations will be available as a supplementary data set within its existing Solvency II look-through reporting solution for asset managers.
Connor Sloman, asset management solutions head for EMEA at Morningstar, said: "By including the SCR calculation in their client reporting, asset managers can communicate the indicative risk breakdown of their funds’ portfolios to insurance clients using the language and methodology of the Solvency II Standard Model.
"As a result, asset managers will be better able to support their insurance clients by providing an additional level of transparency on their funds’ portfolios."
Dermot Shortt, global head of UBS Delta, was quoted by the publication saying, "We are excited to collaborate with Morningstar to provide a holistic approach to address reporting challenges, by coupling Morningstar’s market-leading global fund database with UBS Delta’s strength in asset analytics."
Morningstar said that Solvency II is an updated set of EU regulations that will require insurance companies operating in the European Union to meet enhanced levels of transparency, capital adequacy, and risk assessment for all assets and liabilities on their balance sheet.
