About credit insurance

A book reserve method pension scheme combined with credit insurance means that employees' pensions are guaranteed. Credit insurance is often a prerequisite for deductibility.

Which pension commitments can be covered under credit insurance?

  • ITP 2 book reserve 
  • Early retirement pensions
  • Commitments in other contractual areas
  • Individual commitments
  • ITP 1 book reserve 

What are PRI Pensionsgaranti's requirements?

  • PRI Pensionsgaranti carries out customary credit assessments on an on-going basis, which include, among other things, the company's long-term performance ability of the company, financial position, and ownership structure.
  • A guarantee by the group's parent company is always requested if the company is part of a group.
  • In some cases, additional security is required.

Contract term and renewal

  • Credit insurance contracts have a term of up to three years. Thereafter, the contracts are reviewed for renewal.
  • If the credit insurance is cancelled by PRI Pensionsgaranti, the pension liability can be settled over a period of up to five years.
  • In some cases, PRI Pensionsgaranti may decide that the pension liability must be settled over a shorter period of time.

See the insurance terms and conditions for more information.

What does credit insurance cost?

  • The premium is based on the PRI's insurance liability, which is the same as the estimated cost of buy-out by Alecta.
  • The premium is discounted if security has been lodged for the insurance.
  • The premium is included in the calculation of any dividend.
  • The premium is charged for one year at a time. 

Premium ITP 2

Redemption cost  0.225 %
Redemption cost (eligible collateral)  0.135 %
Redemption cost (foundation or bank guarantee)  0.045 %

The premium can be adjusted according to assessed credit risk.

Premium (not ITP 2)

  • The premium for the credit insurance is currently 0.45% of the pension liability as at 31 December of the previous year.
  • For pension liabilities covered by pension foundation assets or other adequate security, the premium is reduced to 0.15 per cent.

The following applies to both ITP 2 and other credit insurance

  • Supplemental premium. In some cases, a special supplemental premium may be charged. The supplemental premium does not confer a right to any dividend. 
  • Premium for early retirement pensions and limit, 0.2 per cent of the amount granted.
  • Minimum premium, SEK 12,500 per policy. 

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