Allianz Group subsidiary Dresdner Bank has decided to outsource its pension liabilities to a contractual trust arrangement (CTA).
According to a report on IPE.com, the CTA will cover the liabilities of 43,000 employees, equating to a value of $2.1 billion. Dresdner, the banking arm of German insurance giant Allianz, said that it would establish the CTA out of current liquidity.
In establishing the CTA, Dresdner is following in the footsteps of many of Germany’s leading companies including energy titan E.ON and the engineering group MAN. Both have also decided to fund their liabilities through a CTA.