NORWAY - Oslo Sporveier, Oslo's municipal public transport company, has outsourced its NOK2bn group pension scheme to Norwegian insurance company and pension provider Storebrand.
The Oslo Sporveier scheme, previously managed internally, will be managed by Storebrand for five years, effective from 1 January 2006. The company will then decide whether to re-appoint Storebrand for a further five years.
“This is the first time we have looked outside of the business,” said a spokesman for Oslo Sporveier.
“The benefit is we can release a lot of capital, almost NOK500m, and then about a year later about NOK35m less a fee,” she added.
Storebrand beat Vital, one of Norway’s largest insurers, among other contenders to win the Oslo Sporveier brief.
A further four municipalities (Fjell, Frogn, Lier and Øvre Eiker), plus Lyse Energi and Trondhjems Hospital, have also moved their group pension schemes to Storebrand recently. Together these customers represent total reserves of more than NOK1.3bn.
The expanded customer base has seen Storebrand’s assets from public sector pension schemes grow by approximately 30%. To date, the insurer has won more than NOK4bn in net transfers in the second half of 2005. The major part of this will be accounted for in the first quarter of 2006.
An additional 15 municipalities are said to be in the process of evaluating their pension provider, with a number of decisions expected before 1 December.
Lars Aa Loddesol, head of corporate life insurance at Storebrand, said: “It is a declaration of trust that no municipality has ever moved away from Storebrand, whilst all municipalities moving their pension schemes have chosen Storebrand so far this fall.”
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