Federated Mutual Insurance Company appoints Northern Trust as custodian in $7bn mandate 

The mandate follows Northern Trust’s recent revamping of its insurance servicing platform and the launch of new cloud-based reporting and data applications.

By Joe Parsons

Northern Trust has been selected by Federated Mutual Insurance Company to provide global custody and cash management services for over $7 billion in insurance assets. 

The mandate follows Northern Trust’s recent revamping of its insurance servicing platform, including the launch of new cloud-based reporting and data applications, as well as self-service features and on-demand analysis of information. 

“Northern Trust demonstrated a high level of industry expertise and a passion for client service, along with superior technology that will effectively support our investment programme,” said Michael Keller, chief financial officerFederated Insurance. “Their focus on client relationships and the depth of knowledge from every team member made it clear Northern Trust will be a great partner for us.” 

The bank’s insurance servicing business holds over $940 billion in assets under custody, services more than 180 insurance clients worldwide, including 40% of the top 100 US property and casualty companies.  

“We appreciate the opportunity to work with Federated Mutual and bring our industry expertise to one of the nation’s most respected mutual insurance companies,” said Chris Dvorak, head of insurance solutionsNorthern Trust.  

“We look forward to providing them with comprehensive product and technology solutions that will enable them to be increasingly innovative and agile in their investment decisions, ultimately helping them drive bottom line performance.” 

Earlier this summer, Northern Trust successfully implemented three new mandates from European-based insurers – Hannover RE, AioiNissay Dowa Insurance (AND-E) and the Medical and Dental Defence Union of Scotland (MDDUS), to provide a broad range of asset servicing solutions.  

Hannover RE, one of the world’s largest reinsurance firms, chose Northern Trust for collateral management services due to its longevity risk transfer business, and for global custody services. Northern Trust would also provide global custody and other asset servicing solutions to AND-E and MDDUS out of its UK-based office.