EUROPE - Global Pensions has gained exclusive details concerning the launch of a new insurance solution for the pension industry which aims to reduce risk and volatility.
Stefan Allesch-Taylor, deputy chairman of Gibraltar-based Tactica Insurance Group, said the firm was raising £1bn of equity to create the insurance solution, which he hoped would be available later this year.
Allesch-Taylor said: “It will not be a buy out solution because they are usually too expensive to execute.
"We have a market that is about £750bn. From my experience, the deficits are not the critical concern of the sponsor company. It is volatility that causes concern as that creates deficits.”
To resolve the problem, Allesch-Taylor said Tactica Insurance Group had created a solution to control volatility.
He added: “Its objectives will be to reduce risk and volatility that guarantee all cash flows for ten years. It will also guarantee assets equal to IAS19 liabilities at all times for the next ten years.”
Industry Voice: Sponsored by Eaton Vance
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.