Sampension chooses Keylane’s stochastic ALM Projection Model

Sampension, Denmark’s third biggest pension company, has entered into an agreement on the implementation of Keylane’s stochastic ALM (Asset Liability Management) Projection Model.

At the same time, Sampension has decided to upgrade to the latest version of Keylane Valuation, which includes functionality for handling semi-Markov intensities and return from disability. Keylane is honoured by Sampension’s choice and looks forward to an exciting collaboration.

“We have been working on Keylane’s solution for several years. Now we take the final step towards stochastic projection. At the same time, we expect that Keylane’s ALM Projection Model is the standard product that will help us comply with the guidelines on stochastic methods required by the Danish FSA,” says Flemming Windfeld, Mathematical Director at Sampension.

Consolidated and transparent solution

With Keylane’s ALM Projection Model Sampension achieves a consolidated and transparent solution that provides the following:

• Input to the highly topical GAP-analysis and planning exercise announced by the Danish FSA
• Calculation of Solvency II balance by stochastic methods
• Consolidation of budget projections, capital plan, definition of depot interests, ad hoc analyses, etc.
• Advanced risk management regarding linking the investment strategy to the customer’s actual commitments

“At Sampension we have been working on the deterministic projection model for several years and have built up extensive knowledge about the commercial application. It is a natural step forward to incorporate stochastic projection. We are looking forward to project start after the summer holidays,” says Anne Louise Baltzer Engelund, Head of Actuarial Department at Sampension.

Value of the ALM Projection Model

Keylane’s complete offer to the market is a full ALM Projection Model containing the following three main elements:

1. Cashflows for modelling customer obligations – Keylane Valuation
2. Economic Scenario Generator (ESG) for generating future financial market conditions – CphSim ESG (offered by Copenhagen Simulations, which Keylane has partnered up with in February 2018)
3. A projection engine – Keylane ALM – that links assets and liabilities with customer-specific business rules, applicable law and industry standards (the Keylane ALM solution is integratable with other ESG solutions and cash flow generators)

The past couple of years Keylane has facilitated ERFA meetings for all Valuation customers – the purpose of the meetings is to discuss possible challenges and to provide input to Keylane’s product roadmap. With Sampension on Keylane’s ALM Projection Model, Keylane now has the customer base that allows ERFA meetings for this product too – we look forward to inviting existing and future customers to this forum.

“The product is highly relevant in the market and with this agreement – the full package of both ALM and Valuation – Sampension shows confidence in Keylane’s products, we are both humbled and proud. We look forward to the implementation and consider the agreement with Sampension as another recognition of the product – a clear indication that the industry is ready to take up the exciting ALM challenges,” states Mads Storgaard, Chief Actuary, Keylane.

“We highly appreciate our long-term cooperation with Sampension, and that we can now expand it in the ALM area. This enables us to learn and offer even better solutions for the rest of the market in the future,” says Lars Sønderby, VP Sales Life & Pension Nordics, Keylane.

Please contact Mads Storgaard at mads.storgaard@keylane.com or Lars Sønderby at lars.sonderby@keylane.com if you would like to hear more about the Keylane ALM Projection Model and how you stay ahead of legislative requirements.

Sampension – is Denmark’s third largest pension company offering both occupational pensions and company pensions. Sampension’s most important task is to ensure the best possible pensions for its customers. Therefore, Sampension’s primary focus is what makes pension plans more valuable – low costs, good returns, flexible products and competent customer service. Sampension’s business strategy is based on the ambition of being the best pension company in Denmark. For more information visit www.sampension.dk

Keylane A/S – is a leading European supplier of standard SaaS solutions for the insurance, life and pension industry. Keylane is headquartered in Utrecht, The Netherlands, and has over 750 employees across offices in Europe. In April 2017, Keylane acquired Schantz, a supplier of standard software solutions for life and pension companies and holistic financial planning tools for banks. For more information visit keylane.com