New lending reporting solution from Northern Trust
18 March 2011 Chicago
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Northern Trust has created a report to assist insurance companies with regulatory filings on securities lending programmes. The 鈥淪chedule DL鈥� 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 programmes as a way to enhance returns on investment portfolios face new regulatory burdens intended to manage risks and enhance transparency,鈥� said Sheldon Woldt, head of the Insurance Client segment of Northern Trust's asset servicing business. 鈥淎s custodian and securities lending agent, we are positioned to help our insurance clients fulfill reporting requirements with automated solutions. The new 鈥楽chedule DL鈥� report demonstrates Northern Trust鈥檚 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鈥檚 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 麻豆传媒 Valuation Office (SVO). The data is presented in a format that is compatible with the NAIC formatted file requirements.
鈥淲ithout 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,鈥� said Randy Johnson, senior vice president-investments, Texas Mutual Insurance Company. 鈥淣orthern Trust provides a report that saves us time and makes it easier for us to meet our regulatory reporting requirements.鈥�
"Insurance companies that participate in lending programmes as a way to enhance returns on investment portfolios face new regulatory burdens intended to manage risks and enhance transparency,鈥� said Sheldon Woldt, head of the Insurance Client segment of Northern Trust's asset servicing business. 鈥淎s custodian and securities lending agent, we are positioned to help our insurance clients fulfill reporting requirements with automated solutions. The new 鈥楽chedule DL鈥� report demonstrates Northern Trust鈥檚 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鈥檚 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 麻豆传媒 Valuation Office (SVO). The data is presented in a format that is compatible with the NAIC formatted file requirements.
鈥淲ithout 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,鈥� said Randy Johnson, senior vice president-investments, Texas Mutual Insurance Company. 鈥淣orthern Trust provides a report that saves us time and makes it easier for us to meet our regulatory reporting requirements.鈥�
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