Northern Trust Expands Insurance Market Footprint

Northern Trust (Nasdaq: NTRS) has further expanded its market footprint across the global insurance sector with three new mandates from European-based insurers.

Northern Trust will provide a broad range of asset servicing solutions to Hannover Re, Aioi Nissay Dowa Insurance (AND-E) and the Medical and Dental Defence Union of Scotland (MDDUS). These clients appointed Northern Trust in the first quarter of 2020 and were on-boarded before the end of June.

“Northern Trust continues to actively grow its insurance and re-insurance client base across the globe,” said Mark Austin, head of UK, Institutional Investor Group, Northern Trust. “Our history of financial stability, expertise and continuous investment in technology strongly aligns with insurance companies’ requirements for heightened efficiency, transparency and risk management across their investments. These appointments, which add to our significant relationships with many of the world’s leading insurance organizations, highlight our experience of the industry and how we work with insurers to help them execute their business strategies.”

Hannover Re is one of the world’s largest reinsurers, with a gross written premium of more than €22 billion as of 31 December 2019. Northern Trust is providing the Germany-headquartered company with collateral management services for its longevity risk transfer business, and global custody services for the safekeeping and administration of its assets.

Gerhard Lubitz, general manager for corporate finance and collateral management at Hannover Re said: “We required an asset servicing provider with expertise in supporting longevity collateral management and risk transfer activities for the insurance industry. Northern Trust fits that criteria and, as a new client, has impressed us with their understanding of our requirements throughout our on-boarding processes.”

AND-E is a European subsidiary of the Japanese insurance Group MS&AD, operating in the UK and the European Economic Area. It provides motor insurance and other auto-centric insurance products, working with its key strategic partner Toyota and through its own brands. AND-E is also a pioneer in the use of telematics in motor insurance – notably in the UK through its ‘insurethebox’ business. Northern Trust is providing AND-E’s UK-based business with global custody and related asset servicing solutions.

Hugh Sadleir, chief financial officer at AND-E said: “AND-E has a significant and growing presence in the UK motor insurance and telematics markets. Our expansion plans require the support of a global custodian with experience of working across multiple markets and jurisdictions. Northern Trust’s scale, expertise and experience in the insurance market were the key reasons for its appointment.”

MDDUS is a mutual organization providing UK healthcare professionals with access to indemnity, assistance and support. Northern Trust will provide global custody services for MDDUS and its Guernsey-located subsidiary, which operates as a separately registered insurance firm.

James Parker, finance director at MDDUS said: “Northern Trust’s commitment to the UK insurance market and understanding of the industry is apparent. As our members carry out their vital work, this appointment supports our mission to help them manage their professional risks, providing them with access to high-quality, personalised indemnity and support at reasonable cost.”

Northern Trust is authorised to provide a variety of asset servicing, capital markets, liquidity and data solutions to a range of global insurers within the UK, European Union, European Economic Area and Switzerland. Clients include life, property and casualty, pensions, captive and protection and indemnity insurers, as well as the specialist Lloyd’s of London syndicate market.