AIFAM Chooses AIR’s Catastrophe Modeling Systems to Better Manage its Portfolio of Insurance-Linked Securities

Business Editors/Financial Editors/Technology Editors

BOSTON--(BUSINESS WIRE)--August 18, 2008--AIR Worldwide Corporation (AIR) today announced that AIFAM Inc., an investment firm specializing in alternative assets and strategies, has chosen AIR's CATRADER®, the industry standard application for analyzing catastrophe reinsurance and Insurance-Linked Securities (ILS). AIFAM will utilize CATRADER and ALERT™, AIR's online real time loss estimation service, to assess and manage the risks associated with its portfolio of catastrophe bond investments.

“Diversification is an area of focus for us and AIR’s CATRADER supports the analytics we use for constructing an optimal portfolio that may include catastrophe bonds with a range of trigger types, including indemnity, index and notional portfolio-based triggers,” said Teruhisa Shimbara, Portfolio Manager at AIFAM. “CATRADER also makes it easy to quantify the correlations that exist across multiple catastrophe bonds within a portfolio, which allows us to fine-tune our desired risk/return profile.”

CATRADER also provides a powerful way for ILS investors like AIFAM to evaluate and test the sensitivity of the risk analysis information provided in each cat bond’s offering materials. Using CATRADER to generate insights into the underlying portfolio of insurance or reinsurance risks being securitized allows ILS investors to make more informed investment decisions.

“With CATRADER, investors like AIFAM can easily manage a portfolio of catastrophe bonds, Industry Loss Warranties (ILWs) and reinsurance contracts using a single analysis tool,” said Bill Churney, vice president at AIR Worldwide. “CATRADER also provides a breakdown of losses both by peril and by region, making it easy to avoid excessive aggregation of risk in a portfolio.”

ALERT™ (AIR Loss Estimates in Real Time) is an online service providing up-to-date information and loss estimates for major natural catastrophes worldwide. As the market for catastrophe bonds has matured and investors have become more sophisticated, AIR's ALERT has become a key resource for companies trading these instruments in the secondary market.

“By enabling us to better understand the risk associated with new issuances and evaluate the impact of real-time events on existing portfolios, AIR’s CATRADER and ALERT allow us to better serve our investors,” added Shimbara.

AIR is the leading provider of catastrophe risk modeling and analytical services for insurance-linked securities. Since modeling the first large-scale catastrophe bond in 1997, AIR has participated in many of the insurance industry's landmark securitization transactions. In 2007, AIR provided modeling support for more than 3 billion dollars in insurance-linked securities.

About AIR Worldwide Corporation

AIR Worldwide Corporation (AIR) is the scientific leader and most respected provider of risk modeling software and consulting services. AIR founded the catastrophe modeling industry in 1987 and today models the risk from natural catastrophes and terrorism in more than 50 countries. More than 400 insurance, reinsurance, financial, corporate and government clients rely on AIR software and services for catastrophe risk management, insurance-linked securities, site-specific wind and seismic engineering analyses, and property replacement cost valuation. AIR is a member of the ISO family of companies and is headquartered in Boston with additional offices in North America, Europe and Asia. For more information, please visit www.air-worldwide.com.

About AIFAM Inc.

AIFAM Inc., founded in 2001, is an investment firm focusing on alternative assets and strategies. The firm advises and manages assets for institutional investors from its offices in New York, Tokyo, Singapore and London.