Obligations of the insured company

Page changed Monday, June 20, 2011

PRI Pensionsgaranti is a mutual insurance company. To secure our business, both openness and security is required.

All companies that have a credit insurance, and thus part owner of PRI Pensionsgaranti, have a mutual responsibility. This amounts to a maximum of 2% of each company's pension liability.

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Annual and semi-annual reports

The insurant should submit their annual and semi-annual report as soon as they are set.

Significant changes in business activities

Has significant changes occurred in your company? Please inform PRI Pensionsgaranti as soon as possible.

Change of ownership

Has your company been sold or has your company purchased a new company?

In case of change of ownership, information regarding the new parent company should be submitted to PRI Pensionsgaranti. Financial information about the new owner is needed for an updated credit rating.

If one of your previous owners has an established relation with credit insurance, and wants to be relieved from all responsibility, another form of security by PRI Pensionsgaranti has to be accepted.

If the new parent company is already insured or has associates that are insured by us, it is often enough with a short note regarding the change of ownership.

In case of acquisition, it may be necessary for the acquired companies to apply for credit insurance.

Change of address

The insurant should also inform us in case of a new address, change of company name, contact person etc.

Mutual responsibility

The shareholders- the credit insured companies- of PRI Pensionsgaranti have a mutual responsibility. This responsibility can only be imposed in case PRI Pensionsgaranti has consumed all of their assets. The shareholders’ mutual responsibility is composed of a maximum of 2% of each company’s pension liability and should be reported as a contingent liability in the annual report.

Opportunities of PRI Pensionsgaranti 

Our contract periods vary from one to three years depending on the needs of the client. If the company is part of a group, the parent company has to sign a special guarantee.

During the last year of the contract, a new credit rating will be imposed. At least one month before the contract expires, we will inform you about the new contract and conditions.

If PRI Pensionsgaranti believes that the credit risk should be reduced, different types of collateral may be needed. The most common types of collateral are floating charges and mortgages.

Another option is to “freeze” the pension liability. This means that the client company will start to pay premiums to Alecta. The pensions liability will increase, with interest and indexation, and decreases with the payment of pensions and cases of death.

If a company is not able to reach an agreement with PRI Pensionsgaranti regarding the renewal of the contract, the company has to gradually liquidate the pension liability in a 5 year period.

In some cases, PRI Pensiosngaranti can cancel the insurance on immediate terms. This can happen if for example a change of ownership results in an increased credit risk. The insurance can also be cancelled if the client company does not follow the terms of contract.  

Factors affecting credit insurance

Fusions/Business transfer

During fusions and business transfers, the responsibility of the pension benefits is usually transferred. If the acquiring company does not have credit insurance, an application has to be made.

Close-down

If a company is shut down, without transferring the responsibility of the pension liabilities to another employer, the pledges should be solved through the purchase of insurance.

For more information, please contact

PRI Pensionsgaranti

+46 8 679 06 00

info@pripensionsgaranti.se

 
 
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