NISA to Offer Club Vita's Longevity Analytics to Strengthen Clients' Risk Management Strategies
- Access to Club Vita's proprietary data-driven analytics will enable NISA's clients to integrate longevity risk into their pension risk management framework
ST. LOUIS and HOBOKEN, N.J., Oct. 5, 2021 /PRNewswire/ -- Club Vita LLP ("Club Vita"), an international leader in longevity analytics, and NISA Investment Advisors, LLC ("NISA"), a leader in innovative institutional investment solutions, today announced a new strategic relationship. The collaboration will bring Club Vita's longevity risk analytics to NISA and its clients, which include some of the largest pension plans in the U.S.
Club Vita expands on the typical longevity rating factors of gender and affluence, to capture lifestyle using a ZIP+4 model.
Effect of a Mis-estimation in Life Expectancy of 1 Year
"Understanding longevity risk is a vital part of a pension plan's risk management strategy," said David Eichhorn, CFA, NISA's CEO and Head of Investment Strategies. "Access to leading-edge longevity analytics will allow us all a better understanding of our clients' plan-specific demographics. Whether the plan sponsor's end goal is termination or hibernation, avoiding the misestimation of longevity is crucial to a smooth strategy execution."
In the last decade, understanding longevity patterns and trends has become a more significant challenge as most corporate pensions plans have aging populations following their closure to new participants. The historically low-interest-rate environment coupled with evidence of increasingly different experiences of socio-economic groups has only increased the demand for more insightful longevity analytics.
"We look forward to collaborating on new and innovative approaches to holistic risk management for U.S. pension plans and integrating longevity risk into NISA's market-leading approach to liability-driven investments," said Dan Reddy, Club Vita's US CEO. "Our analytics enable pension funds to adopt the best practice risk management techniques of life insurers, including making informed decisions on risk transfer annuity purchases. On behalf of Club Vita, I welcome NISA to our growing family of American advisory partners."
Club Vita's data-driven analytics enable plan sponsors to better understand their longevity risk, with insights tailored to the longevity characteristics of the specific individuals that make up their plan. Through Club Vita's analytics, NISA clients can tailor their existing mortality assumptions, seek to refine their cash flow projections, and improve the effectiveness of hedging strategies in place to manage investment risk. In addition, the objective of the analytics is to reduce the information asymmetry between NISA clients that are considering annuity purchases and life insurers.
About Club Vita Club Vita is a longevity data analytics company, which facilitates the pooling and statistical analysis of demographic data from defined benefit ("DB") pension and retiree health plans to reveal insights that would not be evident to the plans acting alone. Its first two clubs in the UK and Canada have served the needs of plan sponsors and their advisors since 2008 and 2015 respectively, with datasets now covering 1 in 4 of all retirees in receipt of DB pensions in the UK and Canada. Since establishing its U.S. club in 2019, Club Vita has built a data set tracking the varied survival patterns in over 1m U.S. retirees. Club Vita's innovative team has designed, built and refined ZIP code-based multi-factor socio-economic models for understanding the diversity of longevity, enabling plan sponsors to tailor their assumptions to the specific characteristics of their plan's participants and to develop strategies to actively manage their longevity risk. For more information, please visit www.clubvita.us and follow us on LinkedIn.
About NISA Investment Advisors, LLC NISA manages assets for some of the largest institutional investors in the U.S. The firm is 100% employee–owned and based in St. Louis, Missouri. Client portfolios include investment–grade fixed income, derivative overlay, and equity investments. As of June 30, 2021, NISA managed $307 billion in physical assets and $172 billion in derivative notional value in separate account overlay portfolios. NISA is also known for its Pension Surplus Risk Index, or PSRX®, a forward–looking estimate of the funded status volatility of U.S. corporate defined benefit plans and is published monthly. For more information, please visit our website at www.nisa.com and be sure to follow us on LinkedIn.
Media Contacts: Jacklyn Hopkins, Club Vita [email protected] or 613-292-0329
Michael Herley for NISA Investment Advisors, LLC [email protected]or 203–308–1409
SOURCE NISA Investment Advisors, LLC; Club Vita LLP
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