Absorbing the shock
Plunging interest rates have savaged Dutch pensions' cover ratios, marring the schemes' reputation for cutting-edge risk management - and leading the supervisor to conclude the sector has only itself to blame. Aaron Woolner reports
The pensions sector in the Netherlands is in a state of shock. Less than two years ago the average nominal coverage ratio - the ratio of assets against liabilities, including agreed indexation - stood at 152% according to the Dutch Central Bank (DNB). Fast forward to the first quarter of 2009 and the outlook is far less positive.
The EUR10 billion pension fund for Anglo-Dutch oil company Shell saw
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