Lloyds TSB Group plc (LTSB) has successfully implemented the Asset Liability Management software for Pension Funds (PALM) from ORTEC.
The software enables the Group to conduct comprehensive risk analyses of its employee pension schemes. These risk analyses will be used for corporate pension risk assessment and to support the schemes and LTSB in formulating effective long-term investment strategies.
LTSB had licensed the system earlier this year after a thorough evaluation of the available ALM systems. The Group was looking for a supplier offering extensive market risk and inflation modelling expertise. ORTEC offered its solution in co-operation with Cardano Risk Management, a partner of ORTEC in the field of strategic use of liability driven derivatives solutions in ALM. Together, they meet LTSB's requirements best.
Fred Heemskerk, managing Director at ORTEC, says: "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, adds: "the derivative overlay features in PALM are vital in finding a solution that takes into account liabilities, assets and various overlay products".
Robert Armstrong, Head of Market Risk at LTSB, says: "the PALM model has enabled us to analyse our long-term pension risks independently of external advisors and solution providers".