CHICAGO--(BUSINESS WIRE)--Northern Trust announced today it has created a report to assist insurance companies with regulatory filings on securities lending programs. The “Schedule DL” report provides Northern Trust asset servicing clients with information formatted to fulfill National Association of Insurance Commissioners (NAIC) reporting requirements for securities lending reinvestment collateral detail.
"Insurance companies that participate in lending programs as a way to enhance returns on investment portfolios face new regulatory burdens intended to manage risks and enhance transparency,” said Sheldon Woldt, head of the Insurance Client segment of Northern Trust's asset servicing business. “As custodian and securities lending agent, we are positioned to help our insurance clients fulfill reporting requirements with automated solutions. The new ‘Schedule DL’ report demonstrates Northern Trust’s commitment to assisting insurers meet the challenges of changing regulatory requirements."
Schedule DL, effective December 31, 2010, requires insurance companies to show detailed holdings of reinvested collateral on securities loans. The detail required by the rule is not typically available in insurance investment accounting systems. Northern Trust’s solution combines information from its securities lending database with its insurance investment accounting capabilities to assign Schedule D classifications and NAIC ratings received from the Securities Valuation Office (SVO). The data is presented in a format that is compatible with the NAIC formatted file requirements.
“Without the Schedule DL from Northern Trust, we would need to manually collect collateral reinvestment detail and present it in the statutory annual and quarterly statements in the NAIC required format,” said Randy Johnson, Senior Vice President-Investments, Texas Mutual Insurance Company. “Northern Trust provides a report that saves us time and makes it easier for us to meet our regulatory reporting requirements.”
Northern Trust provides a full range of asset servicing and asset management solutions, including global custody, investment operations outsourcing and investment sub-advisory services, to a broad spectrum of insurance clients across the globe. Northern Trust's insurance client base and expertise encompass life, general, pensions, protection and indemnity, captives and the specialist Lloyd's insurance market in the UK.
As part of its commitment to the insurance segment, Northern Trust will host a webinar on insurance regulatory reform on Monday, March 28, from 1 to 2 p.m. Central Time. A panel of industry experts will explore the implications for insurance companies in the move from Statutory Accounting to IFRS, the Dodd-Frank Act and Solvency II. For more details, contact Dennis Case, Insurance Product Manager at Northern Trust.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2010, Northern Trust had assets under custody of US$4.1 trillion, and assets under investment management of US$643.6 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com.