Lexington, MA — October 18, 2004 — AER, Inc. today announced the availability of their leading 10-day ensemble forecast, eCast™, on Risk Management Solutions' (RMS) Climetrix®, an internet based application used by a majority of traders in the weather derivatives market. Now weather traders can gain seamless access to forecasts that incorporate the output from fifty-one atmospheric models to assess the volatility in the forecast. This statistically based information is extremely useful in derivatives pricing.
“AER's extensive research and development in the statistical interpretation of numerical weather prediction is a natural extension to the pricing tools and portfolio management capabilities developed by RMS,” stated Cecilia Sze, President of AER.
eCast™ delivers fifty-one medium range point forecasts based on the European Center for Medium range Weather Forecasts' (ECMWF) Ensemble Prediction System (EPS) for cities in the US and Europe to the RMS application used by traders, brokers, hedge funds and re-insurers. AER provides bias corrected point forecasts from all fifty-one ECMWF model members, which more accurately assesses the variability of the initial conditions that are ultimately responsible for the weather 7 to 10 days out. RMS clients trading in weather derivatives are able to make more informed decisions when they understand the forecast volatility and the spread within the range derived from eCast™.
“We strive to provide our customers with the tools they need. Based on client feedback, AER's forecasts are an important addition to the suite of weather products we provide” stated Steven Jewson, Director of RMS weather business development.
Founded in 1977, Atmospheric and Environmental Research, Inc. is an award-winning environmental research and consulting company addressing the research and science application needs of governmental and industry clients, from the oceans to the planets, from the integration of meteorological systems through the assessment of risk. In addition to its Lexington, MA, headquarters, AER has offices in Omaha, NE and San Francisco, CA. For more information, visit our web site at www.aer.com.
Risk Management Solutions (RMS) is the world's leading provider of products and services for natural hazard risk management. Climetrix® is RMS' Internet-based application that provides integrated access to all of the data, pricing tools, and portfolio management capabilities necessary for successful participation in the weather market. For more information on RMS products and services for the weather market, visit the Climetrix® web site.
Jeff Hamlin, +1 510-505-2564
7015 Gateway Blvd
Newark, CA 94560