Houses (June 30, 2022) – SAS, a global leader in artificial intelligence and analytics, has acquired the Honolulu-based Kamakura Corporation. Privately owned, Kamakura provides specialized software, data and advice that helps financial organizations, including banks, insurance companies, asset managers and pension funds, manage a range of financial risks.
SAS’s investment decision comes as post-pandemic optimism is overshadowed by war, supply chain disruptions and the end of many economic and social COVID support measures. Rising inflation and fears of a recession exacerbate market turbulence. A time for large and small financial services to take a closer look at liquidity and other risks in their portfolios.
“This acquisition is a continuation of the massive investments already made in SAS’s cloud-based risk management platform,” said SAS co-founder and CEO Jim Goodnight. “It demonstrates our commitment to developing industry-leading risk solutions to address the most pressing challenges for our financial service customers. The strength of combining SAS technology with Kamakura’s risk analysis and credit models is expected to be far greater than the sum of its parts.”
With the acquisition of Kamakura, SAS will offer an unrivaled portfolio of integrated risk solutions – particularly within Asset & Liability Management (ALM) – and support additional areas of financial services.
“The value of merging two highly complementary risk technology portfolios is undeniable for anyone familiar with SAS and Kamakura; it’s like putting the right puzzle pieces together, ”said Sidhartha Dash, research director at Chartis. “Combining Kamakura’s strengths – robust ALM and interest rate risk management, proprietary and advanced credit models and risk data – with SAS ‘award-winning credit risk management and integration capabilities is a powerful combination of full-balance risk management.”
Onno de Vrij, Director Banking Risk EMEA at SAS, adds: “In today’s turbulent market, our customers are more in demand than ever before for solutions that provide insight into the impact of combined risks in different scenarios. ALM is fundamental in this Integrated Balance Sheet Management (IBSM) approach. By combining the power of SAS and Kamakura, our customers gain insight into making the right strategic decisions. “
A unique vision
Kamakura is known for its groundbreaking vision and quantitative accuracy. The company has been specializing in software and risk management data for the banking and insurance industry for more than three decades. This is currently offered through two solutions:
- Kamakura Risk Manager (KRM), one of the most advanced, fully integrated risk management systems for ALM on the market. The software offers transaction-level valuation, simulation, stress testing and cash flow analysis.
- Kamakura Risk Information Services (KRIS)† This cloud-based software as a service (SaaS) is a subscription service that provides credit risk data and analytics that help companies and countries predict interest rate differentials and determine the likelihood of default based on proprietary models.
The acquisition will bring these solutions together with Kamakura’s management, managers, employees and contractors in the SAS portfolio. A remarkable collection of specialized credit risk expertise. In today’s market, it would take years to bring this knowledge and expertise together.
Two sides of the same coin
Kamakura chose SAS over other potential acquisition candidates because of the companies’ similarities in data drive, research-oriented culture and mutual focus on modeling and analysis, said Don van Deventer, chairman and CEO of Kamakura, which founded the company in 1990.
SAS and Kamakura share the same philosophy, namely that successful management of financial risks, while optimizing returns and meeting regulatory requirements, requires a number of prerequisites such as advanced research, robust analyzes, fully integrated applications and flawless execution and quantifiable results.
“Joining the SAS family is an exciting new chapter in Kamakura’s 32-year history,” Van Deventer said. “Our peer-to-peer cultures will deliver synergies that drive customer and market innovation. The addition of SAS ‘cloud-native Viya technology, risk capabilities and intuitive, user-friendly interfaces to Kamakura’s IP will lead to a high-quality, industry-leading ALM offering that can change the market. “
“The fragmented and fragmented way in which financial organizations traditionally perform asset-liability and balance sheet management is becoming unaffordable and unsustainable,” said Troy Haines, Senior Vice President and Head of Risk Research and Quantitative Solutions at SAS. “SAS’s decades of expertise in risk management and financial solutions, combined with Kamakura’s advanced ALM capabilities, will provide better support to the industry to address the complex risks posed by the industry and facilitate data – driven decision – making.”
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