About credit insurance

Which pension commitments can be covered under credit insurance?

• ITP book reserve method pension schemes 
• Commitments in other contractual areas
• Commitments in companies’ own plans
• Individual commitments
• Early retirement pensions
• Foreign pension commitments

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 can be adjusted according to assessed credit risk.

Other credit insurance (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 and is 0.1 - 1.2 percent of the pension liability.
• Premium for early retirement pensions and limit, 0.2 per cent of the amount granted.
• Minimum premium, SEK 7,500 per policy.