Innovation Plan – RIMAC Investments Qorus Innovation in Insurance Awards 2017

The Investments Innovation Plan consisted of 10 initiatives that increase the expected profitability of our portfolio and at the same time, diversifies risk better. Thanks to them, RIMAC´s investment portfolio will permanently obtain greater income due to these investments and these will experience less variability. In order to implement these initiatives, in most cases, we had to work with regulating entities to modernize the existing regulations. The process consisted of three stages: Asset Selection, Asset Allocation, and Execution.  Asset Selection (Value Investing Initiative): Consists in the identification of trends that determine the development of global economy in the long term. Then, we established criteria to systematically identify countries favored by this process, the most favored economic sectors and issuing entities in those sectors that have competitive advantages that cannot be replicated, successful operators and high levels of solvency (105 issuers in 14 countries). Asset Allotment (Factor Investing Initiative): We developed optimization models for our 20 portfolios using “A Risk Factor Approach to Asset Allocation”¹. Execution (Initiatives: Quantitative Trading, Debts/Claims, Syndicated Loans, Infrastructure, Real Estate, Inka Bonds, Derivatives, Trusts): We have created the necessary financial instruments and vehicles to take advantage of these investment opportunities: (1) Long-term cross currency interest rate swaps. (2) Three vehicles that enable to invest in the capital and debt of infrastructure projects worldwide and in syndicated loans of high potential companies in the principal world economies. (3) A vehicle to purchase accounts payable of the principal companies in Peru “Factoring”. (4) We structured private bond issuances in Peru for commercial real estate projects. (5) We built the principal network of hospitals in Peru. (6) We were the first insurance company in Latin American to invest in “Green Bonds”. (7) We managed to have several multilateral entities (Kexim, SEK, IFC) issue long-time debts denominated in Soles. (8) We developed a portfolio management service platform for our shareholders using “Trusts”. (9) We developed a quantitative trading model. ¹ Clarke, Roger, Harindra de Silva y Robert Murdock. “A factor Approach to Asset Allocation”, 2005.