Socius Technologies provides cloud-based software solutions for life insurance, pensions, and wealth management. It offers the iCPPI asset allocation mechanism using its highly scalable Azure cloud platform to provide individualized protected investment plans and unit-linked guarantees. NN Group, an international financial services company, integrated Socius' iCPPI hedging platform to manage its unit-linked iCPPI business across multiple European jurisdictions, gaining more flexibility and control over product design and risk management.

2. Socius
Technologies
Based in the technology hub of Cambridge, UK, Socius
Technologies is an innovative Fintech providing cloud-
based software solutions and services for the Life,
Pensions and Wealth Management segment.

3. The iCPPI asset allocation mechanism provides returns through exposure to performance assets
balanced with protection assets to maintain the portfolio above the minimum benefits’ value
Individualised Protected Investment Plans
The iCPPI process does not guarantee the minimum benefits, and the client accounts remain
exposed to large, unexpected falls in the financial markets in a short space of time – gap-risk
A key barrier to the wider take-up of iCPPI across the market has been the extensive timeline and
high cost of a typical implementation
Technology systems managing the account rebalancing have historically been offered by a small
number of large Investment Banks, with the use of the system tied to the gap–risk contract
iCPPI (“individualised Constant Proportion Portfolio Insurance”) is a mechanism to provide unit-
linked guarantees at the individual policyholder level
Therefore, a product provider usually purchases a gap-risk contract

4. iCPPI: The problem we are solving
Retail Bank /
Adviser Network
Life Co
Distribution of Life Co
unit-linked policies
Investment Bank
Asset Servicing Co
Mutual Funds
Aggregated fund orders
Confirmed fund orders
Account instructions
Account and aggregate fund holdings
Gap hedge
Account instructions
Account and aggregate holdings
Gap hedge
This linkage prevents obtaining comparative quotations for the gap-risk contract and places a major hurdle to move
between gap-risk providers
The Investment Bank operates the rebalancing engine and provides the gap hedge

5. Templated legal documentation
The Socius Solution
A highly scalable, Azure Cloud-based account service framework for the full rebalancing process
Multiple models spanning delta-one, term guarantee (iCPPI), growing guarantee (iTIPP) and option
based (iOBPI) guarantees
A sophisticated and fully automated account-level replay and roll-back function combined with an
instantaneous account correction scheme for same-day and later correction
The platform operation is entirely separated from the gap-risk hedge provision
We offer a complete solution for servicing iCPPI plans
The focus of effort for a Socius iCPPI implementation is on integration with a Life Company’s
existing policy admin & fund admin platforms
Unlike the more bespoke Investment Banking iCPPI transactions, we seek to minimise (or leave
untouched) the Life Company’s incumbent systems and build out any missing functionality within
the Socius platform. This approach reduces costs and increases implementation speed

6. We have a track-record of innovative thinking and using technology as a tool for disruption that has
ultimately benefitted both the Life Insurance sector and ultimately the end-consumer
The Socius Solution Bringing positive disruption to the Life Insurance long-term savings market
The platform allows Insurers to offload the market risk associated with their iCPPI unit-linked
products to any number of capital market participants – a key innovation that Socius first brought to
the market in 2015.
This latest initiative has now seen the first occurrence of an Insurer making the significant decision
to migrate from an Investment Bank’s own proprietary hedging platform to an independent platform
Technology has not historically been seen as a strategic tool for the Life Insurance sector, but this
mindset is certainly changing. We believe that providing Insurers with the means to independently
run these type of solutions will be a key-enabler in driving new product innovation and greater
choice for the end customer

7. iCPPI: The new structure
Retail Bank /
Adviser Network
Life Co
Distribution of Life Co
unit-linked policies
Panel of Investment
Banks and Reinsurers
Mutual Funds
Aggregated fund orders
Confirmed fund orders
Gap hedge
Account instructions
Account and aggregate holdings
Gap hedge
The gap hedge may be obtained from a panel of providers for improved pricing
Socius
Platform
Asset Servicing Co
The Socius platform provides full client instruction, algorithmic rebalancing, order and report management services

8. The Socius Platform is a technology platform explicitly designed & developed by former senior
banking personnel with extensive expertise straddling the core functions of Trading, Structuring,
Quantitative Research, Technology and Sales
The Socius Expertise
Leverages the skill, experience and knowledge of these personnel who have transacted CPPI style
trades across multiple jurisdictions with multiple counterparties over many years
We seek to work with, hire and retain personnel with extensive experience in the retail investment
field and technology platform arena who are experts in their own right
This is a platform which has been built solely with the purpose of managing dynamic investment
strategies which offer some form of capital protection
The IT build has not been constrained by in-house technology standards of a large institution but
has been specifically designed & optimised for the purposes of supporting this style of transaction

9. Socius Platform - iCPPI Components
Cloud Based for Scalability
Highly flexible reporting
Programmatic control via REST API
Templated legal documentation Independent Checks and Operation Validation
Comprehensive Account Level Diagnostics
Fully integrated, automated replay and
correction mechanism

10. The rebalancing algorithm accounts for a very wide range of product features
iCPPI: Product Flexibility
Lifecycle Payments Protection Underlyings
Re-risk
Lock-ins
Level
Accumulation
Drawdown
Upfront
Regular
Ad-hoc
Daily Partial
Point-in-time
80%
85%
90%
80-100%
Manual
Automated Previous
locked in-gains
Capital
Contributions
Risk Rated
Portfolios
Self-select
from Universe

11. NN Group is an international financial services company, active in 11 countries, with a strong
presence in a number of European countries and Japan
Integration with NN Group
With circa 14,000 employees, NN provides retirement services, pensions, insurance, banking and
investments to approximately 18 million customers.
After a competitive RFP process, NN Services (the NN Platform for individualized Long Term Saving
products) chose the Socius iCPPI hedging platform to manage the ongoing administration of its unit-
linked iCPPI business which operates across multiple European jurisdictions.
Amongst other benefits, this will provide NN Services with greater control and flexibility over
product design and enhanced risk management capabilities
The platform is hosted within the NN cloud-based infrastructure providing a highly scalable solution
and allows NN Services to offload the market risk associated with such products to a panel of gap-
risk hedge providers

12. Socius platform custom reporting allowed seamless integration with NN Services existing account
management system
Integration Expertise
Socius personnel, with multiple decades of building robust financial-product pricing and risk management
software, worked embedded in the NN offices to ensure a successful migration
The migration spanned a large, multi-product, multi-country back-book
Leveraging the Socius platform templated legal documentation, NN Services were able to request gap-
risk pricing across a panel of investment banks and reinsurers enabling efficient pricing
The platform has enabled rapid product restructuring and model development. This has empowered NN
Business Units to create new business opportunities and react to the rapidly-changing, recent market-
dynamics
This project sets a precedent and will provide other Life Insurers with the confidence to takeback control of the
underlying technology used to administer such data-intensive solutions.