SAP Financial Asset Management is a versatile application for managing and controlling the financial instruments typically used in insurance companies, such as stocks, bonds, money market trades, borrower's notes, derivatives, foreign currency transactions, and mortgage loans.

For all asset types, SAP Financial Asset Management offers straight-through processing, including general ledger postings. Transactions only have to be entered once or supplied by a trader workplace. Electronic status functionality ensures that further processing is secure, fast, and cost effective.

SAP Financial Asset Management facilitates:

• Transaction processing – Business transactions can be duplicated automatically for different accounting principles – such as International Financial Reporting Standards and International Accounting Standards (IFRS/IAS), financial statements for tax purposes, United States and Purchase Generally Accepted Accounting Principles (U.S. GAAP/P-GAAP), and other local regulations – enabling you to set up different principles for one transaction without having to make multiple entries or use multiple interfaces.
• Risk analysis – You can import required parameters (security prices, interest rates, foreign currency rates) from market data suppliers, such as Reuters and Bloomberg. Extensive audit-trail features enable you to save key figures for market risk analysis (such as duration and value at risk), default risk limitation, performance calculation, and benchmarking. In addition, you can use SAP Limit Management to more flexibly map and monitor external and internal investment guidelines as well as trading limits.
• Portfolio management – You can analyze portfolio performance using different criteria. SAP Financial Asset Management supports popular key figures and performance measurement methods, such as time- and money-weighted rate of return. In addition, for analysis and reporting purposes, you can integrate externally managed portfolios, such as individual portfolio components of special funds or entire portfolios from third-party systems.
• Regulatory compliance and reporting – To address risk and compliance requirements, SAP Financial Asset Management provides security through sophisticated authorization functionality, seamless change logging, and segregation of duties. As a result, SAP Financial Asset Management enables you to fulfill auditing and supervisory requirements efficiently while reducing operational risk. In addition, automated processes allow you to perform a fast close and quick and simple regulatory reporting.

If your company is already using other solution components of the SAP for Insurance portfolio, getting started with SAP Financial Asset Management is fast and simple. As soon as the application has been licensed, you can start customizing it to take advantage of additional functionality, including cash and liquidity management, electronic banking, and general ledger accounting. With SAP Financial Asset Management, you even have access to business intelligence tools.