The software enables the Group to conduct risk analyses of its employee pension schemes. These risk analyses will be used for corporate pension risk assessment and to support LTSB’s long-term investment strategies.
LTSB had licensed the system earlier this year after a thorough evaluation of the available ALM systems. The Group says it was looking for a supplier offering extensive market risk and inflation modeling expertise.
Ortec offered its software in co-operation with Cardano Risk Management, a partner of Ortec in the field of strategic use of liability driven derivatives solutions in ALM.
Fred Heemskerk, managing director at Ortec, said, we are delighted that Lloyds TSB has selected PALM. It shows that there is a growing need in the UK for tools to manage and control pension risk in an independent way. Theo Kocken, managing director at Cardano, added, the derivative overlay features in PALM are vital in finding a solution that takes into account liabilities, assets and various overlay products.
