FINLAND - Finnish private sector pension fund Pension Fennia has signed an agreement with Ortec Finance to license an Asset Liability and Risk Management (ALM) solution.

The ALM solution will include the modelling of the Finnish private sector solvency regulations.

With this system, Pension Fennia will formulate ALM strategies based on Ortec Finance's multi-horizon scenario generation, asset and liability methodologies.

The model also incorporates an ex ante risk management tool with specific focus on tail risks.

Pension Fennia director of finance, risk management and HR Irmeli Heino said: "The fact that the model is capable of incorporating the specific Finnish rules into the globally proven platform was clearly a decisive factor for us.

"The technical evaluation of the tool is of course important for us, but so is the partnership we expect to have with an organisation like Ortec Finance."