

Main news of the Sofia S71 release
November 22, 2021 - Sofia S71 was released to all customers of SimCorp Italiana. It contains the following new functionalities.
Compliance
Fast close
The new "Fast Close" module is now available in Sofia, supporting the need to have more than one representation of the accounting situation of a single closing (end of month/quarter).
Using the standard features of the new module, it is possible to obtain, on the same closing date, up to three different accounting situations, progressively characterised by a higher degree of accuracy: it is therefore possible to manage, for example, a "forecast", a "pre-closing" and a "final" situation with reference to the same closing date. Each of these accounting situations is crystallised, thus allowing its consolidation and stability over time.
For further information: sofia.info@simcorp.com
FRS 17 – New module “Asset Return for Insurance”
The module "Asset Return for Insurance", Sofia's solution for the valuation of assets for IFRS 17 purposes, has been further implemented.
The module allows to meet the information needs required by IFRS 17, depending on the different insurance products:
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Class C: calculation of Fair Value Return, IFRS 9 Income Statement broken down on the individual Separate Accounts and OCI Option value, gross and net of point or average overfunding.
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Class D: management of Unit Linked portfolios in which only a portion of the policies have an insurance nature and fall under IFRS 17, allowing for the quantification of the variation in Fair Value of the assets that can be attributed to this portion only, for the purpose of the CSM calculation. For Class D products, such as Unit Linked and Pension Funds, the module also allows the Fair Value Return to be calculated net of expenses, charges and commissions according to the specificities of the Client.
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Multi-branch: it is possible to present results for multi-branch portfolios, aggregating the information obtained from Class C and Class D processing.
For further information and to organize a demo: sofia.IFRS17@simcorp.com
RiskALM
Libor Reform
The development of the module "Overnight" continues with the introduction of the new rate type "Fix to Overnight".
The "Overnight" module allows to manage in Sofia positions of bonds and Interest Rate Swaps (IRS) indexed to overnight rates having the characteristic of accruing a daily rate and presenting a coupon calculation in arrears, supporting the calculation of the daily rate and its use in the Holdings environment.
For further information: sofia.risk-alm@simcorp.com
Strategic planning
The development of the tools supporting the strategic planning of Sofia's investments, continues with particular attention to the increasingly close correlation required between assets and liabilities and to ensure consistency with IFRS 9 and IFRS 17 representation logics.
For the purposes of projecting and analyzing the prospective profitability of assets in line with the changes introduced by the accounting standards IFRS 9 and IFRS 17, Sofia allows to:
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Project portfolios according to the specificities introduced by the IFRS standard, such as:
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future evaluations consistent with IFRS 9 accounting destinations, benefiting from the calculation of the fair price on a single security at each future date
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calculation of the prospective ECL value through Sofia's internal calculation engine
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management of the economic and equity impacts of each divestment at future dates
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Perform multi-scenario sensitivity analyses with the possibility of benefiting from the automatic scenario generator according to the chosen axes of analysis
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Perform multi-GAAP analyses by identifying the impact of Segregated Funds operations on each accounting level of interest
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Project Fair Value Return, OCI Option and OCI mismatch values and future dates, also considering the effect of over-hedging for the Segregated Funds
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Prepare the database needed to produce dashboards and reports.
For further information: sofia.risk-alm@simcorp.com
Financial instruments
Tax credits (Ecobonus)
Following the possibility, for Insurance Companies, to purchase and manage in Non-Life, Life and Segregated Funds portfolios the tax credits resulting from the application of DL n. 34/2020 (Ecobonus, Sismabonus, etc.), the new module "Tax Credits" of Sofia is now available.
For further information: sofia.info@simcorp.com
Indexed cash accounts
The functionalities supporting the management of indexed cash accounts have been enriched with the new event "Change indexing base", which allows to change, starting from a certain date, the reference index that Sofia has to use to calculate the cash account interest. Through this new event it is possible to automatically manage the update of the cash accounts indexed to the Eonia, now obsolete.
For further information: sofia.info@simcorp.com
Toolbox
Macro recorder
Sofia macros have been enhanced with the new Macro Recorder feature, which allows to create new macros more easily by executing in sequence the commands that the macro is supposed to execute automatically.
For further information: sofia.info@simcorp.com