LONDON--()--Northern Trust (Nasdaq: NTRS) announced today that it is providing specialist custody and asset administration services to help insurance clients, such as Sparebank1 Skadesforsikring, help prepare for Solvency II.
“Solvency II is the biggest regulatory challenge facing the insurance industry in Europe today”
“Solvency II is the biggest regulatory challenge facing the insurance industry in Europe today,” said Andrew Melville, head of insurance product for Europe, Middle East and Africa at Northern Trust. “By delivering a single data source for accounting, valuation and asset characteristics, Northern Trust is uniquely positioned to provide insurers with consistent asset data, reducing the need for reconciling multiple data sources.”
The Solvency II directive, scheduled for implementation in 2014, aims to ensure consistent standards across the insurance industry in the European Union by enhancing capital adequacy and risk management requirements. Proposals are expressed in terms of terms of three pillars which include requirements and components that focus on capital, risk, supervision and disclosure:
Pillar 1 – Quantitative requirements
Pillar 2 – Supervisory Review
Pillar 3 – Disclosure Requirements
One of the key features of Northern Trust’s custody platform is that it provides insurers with a single data source for accounting, valuation and asset characteristics. This is important for Solvency II, as it reduces the need for reconciling multiple data sources, thereby ensuring the availability of consistent asset data and creating efficiencies.
Northern Trust can provide a Solvency II risk modelling solution for insurance companies using either a standard risk model or their own internal modelling solution. These risk analytical tools can be used as inputs to determine the required Solvency Capital Requirements and the Minimum Capital Requirements, set out in Pillar 1.
“Northern Trust has already provided us risk analytic tools to help with our development of the internal models as required under Pillar 1,” said Christian Parelius from Sparebank Skadesforsikring, a non-life insurance company based in Norway. “As our focus now shifts towards Pillars 2 and 3, and work begins on our Qualitative Reporting Template, Northern Trust, through their single data source and leveraging existing asset characteristic data, continues to innovate their reporting and governance solutions to support us in providing the asset data elements that will be used across all three pillars of our Solvency II programme.”
Northern Trust provides asset servicing and asset management solutions for insurance clients across the globe, including custody, reporting, investment operations outsourcing and investment sub-advisory services. It is today hosting a forum for its UK based insurance clients at its Canary Wharf offices, to discuss the impact of Solvency II on the industry.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2012, Northern Trust had assets under custody of US$4.6 trillion, and assets under investment management of US$716.5 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com or follow us on Twitter @NorthernTrust.
The material within and any linked material accessed via this communication is directed to eligible counterparties and professional clients only and should not be distributed to or relied upon by retail investors. For Asia Pacific markets, it is directed to institutional investors, expert investors and professional investors only and should not be relied upon by retail investors.
Northern Trust (Guernsey) Limited, Northern Trust Fiduciary Services (Guernsey) Limited, and Northern Trust International Fund Administration Services (Guernsey) Limited are licensed by the Guernsey Financial Services Commission. Northern Trust International Fund Administrators (Jersey) Limited and Northern Trust Fiduciary Services (Jersey) Limited are regulated by the Jersey Financial Services Commission. Northern Trust International Fund Administration Services (Ireland) Limited, Northern Trust Securities Services (Ireland) Limited and Northern Trust Fiduciary Services (Ireland) Limited are regulated by the Central Bank of Ireland. Northern Trust Global Services Limited has a Luxembourg Branch, which is authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF). Northern Trust Luxembourg Management Company S.A. is regulated by the Commission de Surveillance du Secteur Financier (CSSF). Northern Trust Global Investments Limited has a Netherlands branch, which is authorised by the Financial Services Authority and subject to regulation in the Netherlands by the Autoriteit Financiële Markten. Northern Trust Global Services Limited has a Netherlands Branch, which is authorised and regulated in the Netherlands by De Nederlandsche Bank. Northern Trust Global Investments Limited has a Sweden branch, which is authorised by the Financial Services Authority and subject to regulation in Sweden by the Finansinspektionen. Northern Trust Global Services Ltd (UK) Sweden Filial is authorised by the Financial Services Authority and subject to regulation by the Finansinspektionen. Northern Trust Global Services Limited operates in Abu Dhabi as a Representative Office. Our registered office is authorised and regulated by the Central Bank of the United Arab Emirates. The Northern Trust Company operates in Australia as a foreign authorised deposit-taking institution (foreign ADI) and is regulated by the Australian Prudential Regulation Authority. The Northern Trust Company has a branch in China regulated by the China Banking Regulatory Commission. The Northern Trust Company of Hong Kong Limited is regulated by the Hong Kong Securities and Futures Commission. Northern Trust Global Investments Japan, K.K. is regulated by the Japan Financial Services Agency. The Northern Trust Company has a Singapore Branch, which is a foreign wholesale bank regulated by the Monetary Authority of Singapore. The Northern Trust Company operates in Canada as The Northern Trust Company, Canada Branch, which is an authorised foreign bank branch under the Bank Act (Canada). Trustee related services in Canada are provided by the wholly owned subsidiary The Northern Trust Company, Canada, an authorised trust company under the Trust & Loans Companies Act (Canada). Deposits with The Northern Trust Company and its affiliates and subsidiaries are not insured by the Canada Deposit Insurance Corporation.
IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. For more information about this notice, see http://www.northerntrust.com/circular230.