EUROPE - Lloyds TSB Group will carry out risk analysis for pension schemes with PALM, the asset liability management software from Ortec, the software developer and consultancy has announced.

Ortec has successfully implemented the system, which offers LTSB an insight into its pension risks, as well as support for formulating a long-term strategy, it said.

The software firm offered its services in cooperation with Cardano Risk Management, an independent partner for strategic derivatives solutions in ALM. "The combined offer fully complied with LTSB's requirements, it added.

"The software enables us to analyse long-term pension risks, independently from external advisors and suppliers of investment products," Robert Armstrong, LTSB's head of market risk, commented.

"Lloyds TSB's preference for PALM indicates an increasing need for independent tools for managing pensions risks," Fred Heemskerk, managing director of Ortec, said.

"PALM's capabilities of modelling derivatives strategies, are vital for finding a solution which takes into account both liabilities, assets and differing overlay products," Cardano's managing director, Theo Kocken, added.

Lloyds TSB is a worldwide operating financial institution, with group assets of  €462bn and 67,000 staff. Cardano Risk Management plays an important role in independent research into derivatives strategies and their implementation at pension funds and life insurers in Europe. It integrates liability-driven strategies into the ALM analysis.