Introduction to Oracle Hyperion Financial Close Suite

Company Overview• TransRe is a subsidiary of Alleghany Corporation (NYSE: Y), an owner of subsidiaries and investments

anchored by core holdings in property and casualty reinsurance and insurance.

• Transatlantic Reinsurance Company (“TransRe”) is Global Reinsurer headquartered in New York • 4 US Corporations and worldwide operations with key offices in Asia, Australia, Canada, Europe,

South America, & Middle East;• Operate a branch and legal entity structure for reporting needs.

• Insure direct writer insurance companies as well as other reinsurers in two major product lines:• Property which includes fire, auto physical damage, and homeowner’s multi peril i.e. property

catastrophe risks.;• Casualty & Other Liability including D&O, errors and omissions, and general liability, medical

malpractice, ocean marine and aviation, auto liability A&H, surety and credit.

• Key financial highlights 2015• Total Assets $15.2 Billion• Stockholder’s Equity $ 5.2 Billion• Net Premium Written $ 3.4 Billion• Underwriting profit $327.0 Million• Total employees worldwide 627

TransRe – Overview

TransRe – Business Challenges

• Reporting deadlines• US GAAP & US Statutory

• Reliance on manual data entry, manual interfaces & Excel• Multi-functional currency environment• Lack of standardization• Reporting packages, review & deadlines• Automation• Multiple versions of the truth

Integrated Approach• One source• Self administered• Automation• Leverage existing knowledge

TransRe – Approach

Non-Integrated Approach• Multiple tools require multiple support

organizations• Numerous integration points• Application to application reconciliations• Not cost efficient

vs

Applications• HFM• HTP• ARM• FCM• Essbase

TransRe – Current Environment

Manual entries

Cash processing

PAM - Investments

TIRS - Reinsurance

Manual Processes

SUN GL

FDM / Flat Files

Elimination Entries

Hyperion Tax Provision

Hyperion Financial Management

Account Reconciliation

Manager

• Alleghany reporting package

• External reportingReporting deadlines:

• President’s Letter – 7 days from quarter end

• US GAAP to Alleghany - 18 days from quarter end

• Audit & Finance Committee – 14 days from quarter end

• US Statutory – 45 days from quarter end & 60 from year end

Essbase

• Small, phased approach• One change at a time

• Organizational readiness• From US to global rollout

• Define & confirm requirements • Leverage the knowledge of the implementation partner• Ensure goals are understood

TransRe – Implementation methodology

TransRe – Business Benefits

Reinforced Metadata GovernanceAlignment Reporting consistency

Finance Process ImprovementsOwnershipEliminates redundant, manual worksheets

Ability to achieve efficiencies

IT Process Improvements Improved audit controlsReduces IT projects

Dynamic reportingReduced waitingAnalytics, less “doing”

Reporting Enhancements

7

• Application enhancements• Adjustments to HTP for automation & reporting• Global rollout for US GAAP

– Miami & Canada

• Identification of local needs– Reporting

• IFRS• OSFI• Solvency II

– Local provisions– Local currency reporting needs

TransRe – Next Steps

TransRe – Features Leveraged

• HFM• Tiered Entity translation• Multiple exchange rates

• HTP• Customizable forms & reports• Tax Automation flexibility

• ARM• Multi-currency support• Reconciliation types• Reconciliations for multiple sources• Custom attributes

• FDMEE• Support for HFM/HTP, ARM, and Essbase

TransRe – HFM Features• Entity translation

• Entities are remeasured to functional currency in G/L for certain combinations

• Entities are loaded in multiple functional currencies to HFM and then translated to reporting currency (USD)

TransRe – HFM & HTP Features

• HFM - Multiple exchange rates• Rates are different for investment accounts• Custom translation rules use investment rates as an override; the other accounts

use the default rates• HTP - Customizable forms & reports

• OOB FR reports tailored to produce full reporting package• Forms tailored to TransRe usage to simplify presentation

• HTP - Tax Automation• Automate as much as possible from account detail• Leverage accumulate mode to layer multiple components instead of custom rules

TransRe – ARM Features

• Multicurrency• Able to track and reconcile transactional data by currency

(subledgers/3rd party to ledger)• Able to track and reconcile functional data by currency (ledger to HFM)

• Custom attributes• Used to classify and filter reconciliations

• Multiple reconciliations for same Account / Entity pairs• Used 2 character abbreviation as part of Account Key to delineate

reconciliations

TransRe – ARM Features• Types of reconciliations

• Bank accounts (Transactional)• Balance comparison from third party to ledger

• Investments (Transactional / Functional)• Activity (rollforward) from third party custodian• Balance comparison from third party to ledger• Balance comparison from ledger to HFM

• Underwriting (Functional)• Balance comparison from ledger to HFM

• Other Balance Sheet (Functional)• Balance comparison from ledger to HFM• Account analysis of payroll accounts from ledger to be added in future

TransRe – FDMEE Features

• HFM/HTP• G/L

• ARM• Bank data (3rd party)• Investment data (3rd party)• Underwriting data (subledger)• G/L data – Transactional and Functional• HFM data• Leveraged Logic Groups to load once to populate multiple reconciliation types

• Essbase for underwriting and investment cubes

Q&A