2014 EIOPA Report on Cross Border IORP Market Developments

86 authorised cross-border IORPs, 8 Home countries, 17 Host countries

EIOPA 2014: home-host relationships

EIOPA has published its 8th annual report on cross border IORP market developments. EIOPA is presenting more data this year than in previous reports.

Europe counts over 110,000 IORPs, but if we would substract the IORPs in Ireland and the UK the number would only be just over 3,400. There are many, many very small IORPs in these two countries. Total assets under management of these IORPs is € 2,880 billion and if we add the 37 so called Article 4 insurance undertakings this figure is € 3,075 billion. The two largest countries in this respect are the UK (€ 1,383 b; pound sterling converted to Euro) and The Netherlands (€ 1,003 b). The next largest countries are Sweden (€ 228 b) and Germany (€ 178 b).

Only 8 countries in the European Economic Area re Home county to cross-border IORPs. The top-3 is UK (29), Ireland (33) and Belgium (12). The cross border activity of both the UK and Ireland relate  directly to their strong economic relationship. The number for the UK without a single Irish plan would be 12 and the number of Irish cross-border IORPs without a UK plan would be only 1. So in my opinion it is really Belgium and the UK that have so far been selected as Home countries for cross-border IORPs with continental plans with a variety of Host countries.

I have found Annex 1 a very interesting addition as compared to the previous reports as it discloses the names of the active cross-border IORPs. This give an impression of which companies have so far concentrated (part of) their pension plans in a cross-border IORP. The full EIOPA report is attached for those interested in further reading.

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