Press Release
Swiss Re Licenses Kamakura's KRIS Default Probability Service
 
July 12, 2007: Kamakura Corporation announced today that Swiss Re, one of the world's leading reinsurance companies, has licensed Kamakura's KRIS default probability service. The KRIS default probability service, which was launched in 2002, was the first commercial default probability service to include modern "reduced form" default probabilities in addition to the older Merton approach to default probability estimation.
 
"Swiss Re through its Credit Solutions division has been an active participant in sophisticated credit instruments for many years," said Davide Crippa, head of Portfolio Management and Analytics of Credit Solutions. "We share Kamakura's vision that a multiple models approach to credit analysis offers additional perspective on risk and facilitates stress testing. As such, we believe that KRIS default probabilities will support us in further expanding our participation in selected credit markets."
 
"Kamakura admires the risk management analytics at Swiss Re and we are honored to have the opportunity to add Swiss Re as a KRIS client," said Warren Sherman, Kamakura President and Chief Operating Officer. "Given current conditions in the credit markets, we believe it is critical to achieve best practice in credit analytics while avoiding reliance on market participants with an inherent conflict of interest. The partnership between Swiss Re and Kamakura achieves that objective, and we look forward to advice and suggestions from Swiss Re for many years in the future."

Kamakura is offering free trials of its KRIS default probability, default correlation, and collateralized debt obligation pricing service to qualified institutions. For more information on Kamakura's free trial offer please contact Warren Sherman. More information can also be found on the Kamakura Corporation web site and in a chapter from The Basel Handbook: A Guide for Financial Practitioners, second edition, (Michael Ong, Editor) by Kamakura's Donald R. van Deventer, Li Li, and Xiaoming Wang available on Amazon.com.

About Swiss Re
 
Swiss Re is the world's leading and most diversified global re-insurer. The company operates through offices in more than 25 countries. Founded in Zurich, Switzerland, in 1863, Swiss Re offers a wide variety of Reinsurance products and financial services solutions to manage capital and risk. The company's traditional reinsurance products and related services for property and casualty insurance, as well as the life and health business are complemented by insurance-based corporate finance solutions and supplementary services for comprehensive risk management. Swiss Re is rated "AA-" by Standard & Poor's, "Aa2" by Moody's and "A+" by A.M. Best. For more about Swiss Re, please see www.swissre.com.
 

About Kamakura Corporation

Kamakura Corporation is a leading provider of risk management information, processing and software. Kamakura has been a provider of daily default probabilities and default correlations for listed companies since November, 2002. Kamakura launched its business mortality model for unlisted companies in January 2004. Kamakura is also the first company in the world to develop and install a fully integrated enterprise risk management system that analyzes credit risk, market risk, asset and liability management, and transfer pricing software system. Kamakura has served more than 160 clients ranging in size from $3 billion in assets to $1.6 trillion in assets. Kamakura's risk management products are currently used in 23 countries, including the United States, Canada, Germany, the Netherlands, France, Switzerland, the United Kingdom, Eastern Europe, the Middle East, Africa, Australia, Japan, China, Korea and many other countries in Asia.

Kamakura's research effort is led by Professor Robert Jarrow, who was named Financial Engineer of the Year in 1997 by the International Association of Financial Engineers. Professor Jarrow and Dr. van Deventer were both named to the 50 member RISK Hall of Fame in December 2002. Kamakura management has published more than 100 publications on credit risk, market risk, and asset and liability management.

Kamakura has world-wide distribution alliances with Fiserv and Unisys, making Kamakura products available in almost every major city around the globe.

For more information contact

Kamakura Corporation
2222 Kalakaua Avenue, 14th Floor, Honolulu, Hawaii 96815
Telephone: 1-808-791-9888
Facsimile: 1-808-791-9898
Information: info@kamakuraco.com
Web site: www.kamakuraco.com