Mergers & Acquisitions & Restructuring

Decision makers can assess the desirability of mergers and acquisitions by simply entering the relevant data (or have Predyct Analytics enter the relevant data) for both companies into the Predyct ERM model. Predyct ERM automatically combines the balance sheets and profit and loss statements of both companies and provides all the output on the combined companies that it provides on any single company. Capital adequacy, profitability and inferred ratings can be immediately assessed on the acquisition. The same is true for assessing the impact of divestitures or virtually any type of restructuring. The user can ask virtually any type of "What If" question. For example:

Mergers & Acquisitions — What happens to a company’s risk and return if it:

• Acquires another company or business?
• Divests a business?

Scenario Analysis — What if:

• Reserve development risk increases or decreases in future periods?
• There are greater levels of correlation between risks in future periods?
• Premium pricing hardens or softens by speci?ed levels in various lines of business?

Restructuring Activity — What happens to a company’s risk and ?nancial return if it:

• Enters or withdraws from a line of business, state or country?
• Rebalances cash ?ow mismatches?
• Increases or decreases the quality of its bond portfolio?
• Changes the structure of its reinsurance?
• Securitizes risk and/or changes its debt level?
• Increases the size of its equity portfolio or changes its composition?