Our Software Suite history

R³S Modeler is a market-leading software used for actuarial and financial analysis by insurance firms. Designed in response to the increasing focus on risk and capital management and the demand for more realistic modelling in financial analysis, the tool is used primarily for:

Although the Software Suite went through few acquisitions and rebranding since its creation more than 20 years ago, the core team of development and consulting experts remains the same and fully dedicated to the solution which has a long-standing track record of providing users with ways to implement new complex standards and techniques.

VIP 4 was originally developed in 1996 at Watson Wyatt for internal purposes.

In April 2006, Watson Wyatt launched to the market VIPitech as a successor to the established VIP 4 product following a 5-years of complete re-design and development of the existing system to produce a state-of-the-art actuarial system capable of ‘real-world’ stochastic ALM.

In April 2010 the Actuarial tool integrated the Standard library of Code designed for Life business with regulatory requirement in mind was released. The same year, VIPitech Enterprise Production Server (VIPitech EPS) was released, designed to allow complete centralized management of the actuarial model production process.

Following the merge between Watson Wyatt and Towers Perrin and the requirement from the European Commission to sell one of the two leading software owned by the mergers, Algorithmics acquired in June 2010 the VIPitech’s software solutions, intellectual property, infrastructure and the team, including development, support, modelling consultants and business development staff. The Fitch Group company, who saw VIPitech as a natural fit alongside existing solutions allowing to extend from focus on asset-centric valuation and use of replicating portfolio techniques. This acquisition was part of the company’s strategy to extend the solutions beyond risk management into risk-aware applications that help clients in their business decisions.

In February 2011, the Actuarial modelling tool and associated enterprise server version were renamed respectively Algo Financial Modeler (AFM) and Algo Financial Modeler Enterprise (AFME). As part of the integration with other Algo tools, the asset and liability models contained in Algo Financial Modeler were improved to perform all the functions in the actuarial control cycle and for balance sheet calculation of capital and liabilities for regulatory regimes such as Solvency II and the first Solvency II Standard Formula model applying Market and Life stresses and enabling the measurement, management and reporting of Solvency Capital Requirements (SCR) under Solvency II regulations was released in April 2011.

In October 2011, Algorithmics was acquired by IBM to broaden advanced analytics capabilities for the financial services industry and formed with OpenPages a new Risk Analytics pillar within the Business Analytics software division. The tools were then rebranded as IBM® Algo Financial Modeler® and IBM® Algo Financial Modeler Enterprise® in 2012.

With the adoption of the Solvency II directive in 2013, the development of the tools focused on enabling AFM clients to comply with the new regulatory framework. Efficiency improvement and new functionalities were thus progressively integrated to the calculation engine like the Projected Data layer, Currencies and Looping functionalities to support the release of specific models like Value At Risk, Cashflow Matching, Curve Fitting and Market specific models included in the revisited Standard Code library. In November 2015, the actuarial modelling team released a completed Solvency II Standard Formula (calculation all SCRs), FLAOR and proxy (curve fitting and Least-squares Monte Carlo) supporting ORSA calculations and IFRS 4 Phase 2 models.

In July 2017, RNA Analytics acquired the assets and technology of IBM® Algo Financial Modeler® including the core team that has supported the AFM solution since it was first released in 2006. The software suite was rebranded few months later as R³S with the model tools being renamed R³S Modeler and R³S Process Manager.

RNA Analytics heavily invested in developing the software suite to enable R³S clients implement the new accounting standard IFRS 17 issued in May 2017. In December 2017, the actuarial team worked with the first client reporting IFRS 17 results using R³S software suite. The IFRS 17 model was released  in May 2018 and have since been improved including new functionalities and regulatory updates.

In July 2019, R³S version 3.0 was released enabling users to write model results directly to a database, reducing the amount of manual intervention in production environments and improving the overall processing time of a reporting period, optimizing workflow, resources, and productivity. The release also included the new collaborative tool R³S Development Manager enabling multi-user development of models and their storage in a central repository with a version history of changes in the models.

Although the year of 2020 has been marked by the pandemic, the team has expanded including new members on the development and consulting side and have penetrated new markets. A new software version 3.1  focusing on performance improvement and including new functionalities was released in June 2020 and new technical consulting and online training were created. The team has been working hard on future releases of the Non Life Standard Code which was released early 2021.