Falling coverage ratios will hamper Dutch pension funds’ buy-out efforts, warns ABN Amro

ABN Amro predicts half of Dutch company pension funds will shift assets to insured schemes

Poor economic conditions and the regulatory environment will put pressure on Dutch pension funds to seek buy-outs, according to Dutch state-owned bank ABN Amro. But falling solvency levels of both pension funds and insurers will make it difficult to accomplish this in the short term, the bank said.

ABN Amro predicted that around half of the company pension funds within the country will shift their assets to insured schemes in the future.

Jan Willem Weidema, equity analyst at ABN Amro in Holland