About credit insurance

A book reserve method pension scheme in combination with credit insurance means that the employees’ pensions are guaranteed. Credit insurance is often required in order to be entitled to take deductions.

What pension commitments may be credit insured?

ITP book reserve method pensions
Commitments within other agreement areas
Commitments within a company’s own plans
Individual commitments
Early retirement pensions
Pension commitments abroad

What requirements are there for PRI Pensionsgaranti?

PRI Pensionsgaranti conducts credit assessments on a regular basis, among other things based on the company’s long-term profit-making ability, financial position and ownership.
A guarantee from the group parent company is always requested, where applicable.
In certain cases, supplemental security is required.

Agreement term and extension

Credit insurance agreements have a term of up to three years. Thereafter, the agreements are reviewed for extension.
In the event the credit insurance is terminated by PRI Pensionsgaranti, the pension liability may be redeemed over a period of up to five years.
In certain cases, PRI Pensionsgaranti may decide that the pension liability is to be redeemed over a shorter period of time.

What does the credit insurance cost in 2019?

The premium for the credit insurance is 0.4 percent of the pension liability as per December 31, 2018.
For pension liability which is covered by assets in a pension foundation, the premium is reduced to 0.1 percent. If a bank guarantee or equivalent is issued, the premium is also 0.1 percent.
Minimum premium. We charge a minimum premium of SEK 5,000 per policy.
Additional premium. In certain cases, a supplemental premium may be charged. The supplemental premium does not provide an entitlement to a bonus and is 0.1 - 1.2 percent of the pension liability.
Additional premium for early retirement pensions and limit - 0.2 percent of the granted amount.