International financial services organization Citigroup has formed a European insurance and pensions group, according to an industry media report.

According to reports from Investment and Pensions Europe (IPE), the new 20-strong London-based team will run across the bank’s fixed income, equities and banking divisions to provide solutions for insurers and corporate pension funds.

Citigroup, which exited the asset management business last year when it sold the division to Legg Mason, said the new operation group will offer services in capital raising, derivatives structured products and structured finance, along with actuarial, accounting and risk management modeling.

Wiltrud Heiss, who joined the group from Deutsche Bank in 2003, will mange the group, with Paul Schultz as her deputy.

Ms Heiss will report to Valentin Ehmer, co-head of fixed income capital markets products, and Andres Recoder, head of European regional sales and structured product marketing.

IPE reported Citigroup as saying that the development will look to take advantage of recent moves by insurers and pension funds to revisit the appropriate level of risk that can be sustained in light of recent regulatory and accounting changes.