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Northern Trust wins Solvency II mandate
01 May 2012
Northern Trust will help a Norway insurance firm prepare for the Solvency II directive
Northern Trust has picked up a custody and asset administration mandate from Norway insurance company Sparebank Skadesforsikring to help it prepare for Solvency II.
The custodian said its platform gives insurers a single data source for accounting, valuation and asset characteristics, reducing the need for reconciling multiple data sources and therefore ensuring that asset data is consistent and efficient.
Northern Trust also provides a Solvency II risk modelling solution for insurance firms that use a standard risk model or their own internal modelling solution. These risk analytic tools can help with the development of internal models as required from the solvency capital requirements and minimum capital requirements under pillar one of the directive, according to Christian Parelius from Sparebank Skadesforsikring.
Parelius said the insurer is now shifting its focus towards pillars two and three of the directive, the supervisory review and disclosure requirements. He said Northern Trust will be able to help the firm work on this.
Solvency II is a European directive targeted at the insurance industry which will come into force in 2014.