NETHERLANDS - APG and Cordares have signed a merger deal that will create one of the world's largest pension administration firms, with more than €240bn (US$382bn) of assets under management.
Dick Sluimers, chairman, APG group executive board, said: "Our special pension system deserves the most powerful administrator. This new group creates an organisation that bundles years of knowledge and experience in order to offer the best possible pension product."
The deal is structured in a way that APG, the asset management arm of pension fund ABP, will take a 51% controlling stake in Cordares, while Cordares will sell on its insurance concern to Loyalis, APG's subsidiary, in exchange for a 10% stake in Loyalis.
Adri van der Wurff, a member of the board, said the deal would offer the merged group scale and synergy advantages which would be of great benefit to plan members.
The group said it also had ambitions to expand its cross border facilities. APG already provides international pension expertise through Cordares, but said it hoped the move would strengthen the Dutch pension system.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.