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NISA to Offer Club Vita’s Longevity Analytics to Strengthen Clients’ Risk Management Strategies

Access to Club Vita’s proprietary data-driven analytics will enable NISA’s clients to integrate longevity risk into their pension risk management framework

5 October 2021

ST. LOUIS and HOBOKEN, NJ – Club Vita LLP (“Club Vita”), an international leader in longevity analytics, and NISA Investment Advisors, LLC (“NISA”), a leader in innovative institutional investment solutions, today announced a new strategic relationship. The collaboration will bring Club Vita’s longevity risk analytics to NISA and its clients, which include some of the largest pension plans in the U.S.

“Understanding longevity risk is a vital part of a pension plan’s risk management strategy,” said David Eichhorn, CFA, NISA's CEO and Head of Investment Strategies. “Access to leading-edge longevity analytics will allow us all a better understanding of our clients’ plan-specific demographics. Whether the plan sponsor’s end goal is termination or hibernation, avoiding the misestimation of longevity is crucial to a smooth strategy execution.”

In the last decade, understanding longevity patterns and trends has become a more significant challenge as most corporate pensions plans have aging populations following their closure to new participants. The historically low-interest-rate environment coupled with evidence of increasingly different experiences of socio-economic groups has only increased the demand for more insightful longevity analytics.

“We look forward to collaborating on new and innovative approaches to holistic risk management for U.S. pension plans and integrating longevity risk into NISA’s market-leading approach to liability-driven investments,” said Dan Reddy, Club Vita’s US CEO. “Our analytics enable pension funds to adopt the best practice risk management techniques of life insurers, including making informed decisions on risk transfer annuity purchases. On behalf of Club Vita, I welcome NISA to our growing family of American advisory partners.”

Club Vita’s data-driven analytics enable plan sponsors to better understand their longevity risk, with insights tailored to the longevity characteristics of the specific individuals that make up their plan. Through Club Vita’s analytics, NISA clients can tailor their existing mortality assumptions, seek to refine their cash flow projections, and improve the effectiveness of hedging strategies in place to manage investment risk. In addition, the objective of the analytics is to reduce the information asymmetry between NISA clients that are considering annuity purchases and life insurers.

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