Total gross premium income rises to € 2.3 billion (+4%)
- Total gross premium income rises to € 2.3 billion (+4%)
- Pre-tax profit: € 132 million (-22%)
- Net profit: € 106 million (-22%)
- Revaluation reserve €411 million by 30 June 2002
- Profit for whole year lower
- Return on investments: € 730 million (-11%)
- Outstanding growth of life premium income in Belgium, to € 115 million (+66%).
- Profit in Germany doubles to € 5.8 million (+107%).
- Delta Lloyd General Insurance profit rises to € 15 million (+60%).
Key figures (in millions of euros)
First half of 2002 | First half of 2001 | Change % | |
REVENUE | |||
Gross premium income: life assurance | 1,388.0 | 1,353.0 | 3 |
Gross premium income: general insurance | 469.2 | 444.2 | 6 |
Gross premium income: health insurance | 490.6 | 469.8 | 4 |
Total gross premium income | 2,347.8 | 2,267.0 | 4 |
Other activities | 32.2 | 23.3 | 38 |
Return on investments | 729.5 | 819.0 | -11 |
Total revenue | 3,109.5 | 3,109.3 | 0 |
RESULTS | |||
Delta Lloyd Insurance | 103.7 | 117.8 | -12 |
OHRA Insurance | 7.9 | 13.0 | -39 |
Delta Lloyd Banking Group | 0.5 | 0.3 | 67 |
Delta Lloyd Deutschland | 5.8 | 2.8 | 107 |
Other | 14.3 | 34.7 | -59 |
Total pre-tax profit | 132.2 | 168.6 | -22 |
Net profit | 106.4 | 136.6 | -22 |
Shareholder’s funds at end of period | 2,055.1 | 2,353.9* | -13* |
Total assets managed at end of period | 42,174.0 | 44,183.9* | -5* |
Total staff (FTEs) at end of period | 6,372 | 6,506* | -2* |
* Comparative figures as of 31 December 2001.
DEVELOPMENTS AT DELTA LLOYD DURING FIRST SIX MONTHS OF 2002
- The first half of 2002 was a turbulent period for Delta Lloyd NV as a financial services provider. The general malaise on the financial markets and the second quarter of the year, in particular, will go down in history as one of the worst ever for the Amsterdam stock market. Politically, too, the Netherlands has had an eventful year thus far. The probable result of this is increased uncertainty amongst clients, especially in the field of life assurance.
- For Delta Lloyd NV, gross premium income increased by 4 per cent in the first half of this year, compared with the same period in 2001, to € 2,348 million. But there was substantial growth abroad, with life business particularly benefiting. Whereas the radically changing fiscal climate in the Netherlands has put growth here under pressure, Life performed strongly elsewhere. In Belgium, income increased by as much as 66 per cent compared with the first half of 2001. Germany also did very well, with revenue rising by 9 per cent. More than 30 per cent of our total life premiums of almost € 1.4 billion are now generated abroad.
- General business continued to evolve positively for Delta Lloyd Insurance. We have now built up excellent positions in a number of specific markets.
- Thanks mainly to the inclusion of Bank Nagelmackers in the consolidation for the first time; the Banking Group was able to achieve a 32 per cent increase in revenue.
- The OHRA division has had to struggle with disappointing results.
- Investment returns fell, as a result of market movements, by 11 per cent to € 730 million.
- Profit development was less favourable than expected, falling by 22 per cent to € 132 million. Due in part to this decline, a cost-reduction programme was begun in the past six months. The objective of this is to reduce overall cost levels across the group. The first major results will be observed during the second half of 2002, with gains continuing into 2003. This will further reinforce Delta Lloyd's competitive position. Particular efforts in the field of costs management had already begun at Delta Lloyd Bank last year. The effects of this are already visible.
- The shareholders' equity and the total assets managed both fell, to € 2.1 billion (down 13 per cent) and € 42.2 billion (down 5 per cent) respectively. This decline is primarily attributable to lower equity prices.
- Solvency, however, remains strong: 221% for Delta Lloyd Insurance Life business and 223% for General Insurance at the end of June 2002. The solvency for the total group, excluding banks, is 179%.
DELTA LLOYD NV FORECASTS FOR 2002
There is still no indication that the stabilisation or possible recovery of the financial markets, as forecast at the beginning of this year, is likely to occur in the short term. In fact, the state of the markets has worsened in recent months. This has put results even further under pressure, which means that our original expectation that Delta Lloyd NV would witness clear growth in revenue and profits cannot be realised. A decline in profits must now be expected in 2002 compared with 2001, subject to developments in the financial markets.
DELTA LLOYD INSURANCE
Delta Lloyd Insurance is the group's largest division, focusing upon the life, general and healthcare insurance markets through independent intermediaries.
All subdivisions were able to achieve at least a slight increase in their gross premium incomes compared with the first half of 2001. In total, the rise was 3 per cent, to € 1,478 million. Pre-tax profit decreased by 12 per cent, to € 104 million.
General insurance, in particular, developed satisfactorily. This continued its improvement from previous periods. Gross premium incomes particularly increased in the niche markets upon which Delta Lloyd has been concentrating: commercial fire, pleasure craft and technical insurance. Motor insurance lagged behind, but improvement is expected during the second half of the year following the launch of a new motor insurance. At € 15 million, profits for general insurance were almost twice those for the same period last year.
The life-assurance market has become increasingly difficult, due in part to the fiscal climate. Although its premium income remained at the same level as in the first half of 2001, Life's pre-tax profits fell somewhat, to € 89 million (down 21 per cent). Despite the poor market conditions, Delta Lloyd's solvency remains excellent.
Healthcare's premium income rose by 5 per cent compared with the first half of 2001. But its pre-tax profits fell by € 1.4 million, due largely to higher claims.
OHRA INSURANCE
OHRA Insurance sells life, general and health insurance policies directly to the consumer.
OHRA has a difficult six months behind it. Its pre-tax profits fell by 39 per cent, to € 7.9 million. Following the internal reorganisation at the end of last year, the division is now working to raise its customer profile. A clear new positioning was adopted in May, under the slogan "OHRA, direct results". Through its NSF subsidiary, OHRA has recently begun a joint venture with Yarden offering end-of-life-related insurance.
Life premium revenue fell considerably compared with the first half of last year. Sales of single-premium and annuity products, in particular, declined sharply as a result of their reduced fiscal appeal. This led to a fall in premium income to € 98 million (down 28 per cent). General insurance remained relatively stable, by contrast, performing only fractionally worse than last year. Healthcare's results, however, were poor due to a smaller amount of new business and more claims than expected.
ASSET MANAGEMENT AND PROPERTY
With the continuing negative mood on the financial markets during the first half of this year, the Asset Management Division is still operating under difficult conditions. The total assets managed therefore fell by some 5 per cent. Including property, they totalled € 42.2 billion at the end of June 2002.
Return on investments declined by 11 per cent, to € 730 million. New deposits in the investment funds rose by 10 per cent, to € 603 million, due mainly to new deposits by institutional and private investors. The influx of new capital from insurance products fell.
DELTA LLOYD BANKING GROUP
The Delta Lloyd Banking Group is made up of
- Delta Lloyd Bank and OHRA Bank,
- Delta Lloyd Securities (Amsterdam/Antwerp),
- Delta Lloyd Bank and Bank Nagelmackers in Belgium.
The Banking Group can look back on a relatively good first half of 2002. Due in part to the recent acquisition of Bank Nagelmackers, revenue increased by 32 per cent, to € 131 million. The implementation of cost savings has resulted in a higher revenue being accompanied by reduced costs. The Group is therefore expected to end 2002 positively, despite the depressed equities market.
As in previous years, mortgage business grew strongly. The total mortgage portfolio is now worth € 5.9 billion. In June, the sum of € 1.1 billion in mortgage securities was securitised under the name Arena 2002-I.
DELTA LLOYD DEUTSCHLAND
Delta Lloyd Deutschland continues to evolve positively. Gross life premiums rose by 9 per cent compared with the first half of 2001, to just over € 291 million. This means that Delta Lloyd now derives more than 20 per cent of its premiums from Germany. Single-premium policies performed particularly well, sales increasing by 80 per cent to € 63 million.
Delta Lloyd Deutschland's pre-tax profits amounted to € 5.8 million, more than double the result of the first half of 2001 (+107%).
DELTA LLOYD BELGIUM
Delta Lloyd Belgium is the fastest growing division within the group. It concentrates mainly upon life activities, which are all now positioned under the Delta Lloyd brand name. The distribution channel has been both streamlined and, with the acquisition of the Bank Nagelmackers network, expanded. This led to Delta Lloyd Life in Belgium seeing its premium income rise by 65 per cent during the first six months of this year, to just over € 115 million. Delta Lloyd hopes to keep up these impressive growth figures in the future.
As a small player in the rapidly growing Belgian market, and incurring high start-up costs in establishing the Delta Lloyd name there, our activities in Belgium are not yet profitable.
ENNIA CARIBE
Ennia Caribe covers the insurance operations in the Netherlands Antilles and Aruba. Total Gross written Premium of Ennia increased 7%, mainly caused by the successful take-over of “de Amersfoortse Antillen NV”. This take-over will create cost benefits due to an increase in scale. The focus remains on life, financial services and profitable general insurance products.
ADDITIONAL INFORMATION
- The financial summaries contained in this press release have been compiled using the same principles for valuation and the determination of profit and loss as were applied in the annual accounts for 2001.
- No shares were issued or repurchased during the first six months of 2002, and no significant changes have been made to the structure of the group.
- Ninety-two per cent of the shares in Delta Lloyd NV are owned by Aviva plc (formerly CGNU) of London, UK.
- The figures reported in this press release have not been audited by external accountants.
NOTES TO EDITORS
- As a customer and service-oriented financial services provider, Delta Lloyd NV provides a broad range of products under the brand names Delta Lloyd and OHRA. These are supplied through the channel of distribution chosen by the consumer, and range from simple saving products to complex insurance products and financial planning. Delta Lloyd works intensively and exclusively with independent insurance intermediaries, whereas OHRA targets the consumer directly. As well as a leading insurance company, the group also includes an Asset Management Division, a Banking Group and divisions in Germany, Belgium and the Netherlands Antilles. Through these, Delta Lloyd is striving to become one of the leading financial services providers in the Benelux and Germany within the next five years.
- Delta Lloyd NV consists of the following divisions:
- Delta Lloyd Insurance (insurance through intermediaries in the Netherlands);
- OHRA Insurance (insurance directly sold to the consumer in the Netherlands);
- Delta Lloyd Asset Management (asset management);
- Delta Lloyd Banking Group (retail and private banking in Benelux, asset management in Belgium);
- Delta Lloyd Property (property investments);
- Delta Lloyd Deutschland (life assurance, private banking and asset management in Germany);
- Delta Lloyd Belgium (life assurance in Belgium and Luxembourg); and,
- Ennia Caribe (insurance in the Netherlands Antilles).
MORE INFORMATION
For further information, please contact David Brilleslijper, Corporate Communications Manager, Delta Lloyd NV, telephone +31 20 594 4488.
APPENDICES
- Summary consolidated profit-and-loss account of Delta Lloyd NV for the first six months of 2002.
- Consolidated balance sheet of Delta Lloyd NV on 30 June 2002.
- Key figures per division for the first six months of 2002.
Appendix 1 to Delta Lloyd NV press release, 1 August 2002
Delta Lloyd NV
Summary consolidated profit-and-loss account for the first six months of 2002
(in millions of euros)
2002 | 2001 | Change in % | |
TECHNICAL ACCOUNT RESULTS | |||
- life assurance | 21.6 | 45.5 | -53% |
- general insurance | 0.5 | 1.4 | -64% |
- health insurance | -4.9 | -1.4 | -250% |
Technical profit | 17.2 | 45.5 | -62% |
Return on investments | 558,1 | 715,9 | -22% |
Investment costs | -73.2 | -89.6 | -18% |
Allocated yield from investments | |||
Transferred to technical account | -384.8 | -510.3 | -25% |
Other income | 38,7 | 34.3 | 13% |
Other costs | -23.8 | -27.2 | -13% |
PROFIT BEFORE TAX | 132.2 | 168.6 | -22% |
Tax on profit on ordinary activities | -25 | -31.5 | -21% |
PROFIT AFTER TAX | 107.2 | 137.1 | -22% |
Minority interests | -0.8 | -0.5 | -60% |
NET PROFIT | 106.4 | 136.6 | -22% |
Appendix 2 to Delta Lloyd NV press release, 1 August 2002
Delta Lloyd NV
Summary consolidated balance sheet
(in millions of euros)
30/06/2002 | 31/12/2001 | |
Assets | ||
INSURANCE DIVISION | ||
Intangible assets | 22.8 | 20 |
Investments | ||
Land and buildings | 1,709.50 | 1,720.40 |
Shareholdings | 78.8 | 52.3 |
Other financial investments | 20,454.70 | 19,696.40 |
Securitised mortgage loans | -2,598.30 | -1,520.80 |
Deposits with insurers | 79 | 75.8 |
19,723.70 | 20,024.10 | |
Investments for and on behalf of policyholders, savings-fund investments | 6,710.30 | 6,701.90 |
Accounts receivable | ||
From direct insurance | 650.6 | 357.3 |
From reinsurance | 35 | 16.6 |
Other accounts receivable | 1,181.00 | 492 |
1,866.60 | 865.9 | |
Other assets | ||
Tangible fixed assets | 41.3 | 40.9 |
Liquid assets | 607.5 | 412.8 |
Other assets | 72.6 | 66.6 |
721.4 | 520.3 | |
Prepayments and accrued income | ||
Current interest and rent | 314.7 | 344.4 |
Transitory acquisition costs | 210.1 | 204.5 |
Other accrued income | 224.6 | 169.4 |
749.4 | 718.3 | |
TOTAL ASSETS OF INSURANCE DIVISION | 29,794.20 | 28,850.50 |
TOTAL ASSETS OF BANKING DIVISION | 5,364.30 | 5,388.10 |
Total assets | 35,158.50 | 34,238.60 |
Delta Lloyd NV
Consolidated balance sheet
(in millions of euros)
30/06/2002 | 31/12/2001 | |
Liabilities | ||
GROUP LIABILITY CAPITAL | ||
Capital and reserves | 2,055.10 | 2,353.90 |
Perpetual subordinated convertible loan | 172.4 | 172.4 |
Funds for general banking risks | 8.4 | 9.3 |
2,235.90 | 2,535.60 | |
Minority interests | 7.5 | 7.3 |
INSURANCE DIVISION | ||
Technical provisions | ||
Unearned premiums and contingent liabilities | 573.7 | 383.2 |
For life assurance | 15,548.70 | 14,973.10 |
For claims payable | 1,388.00 | 1,260.60 |
For profit sharing and discounts | 590.6 | 607.1 |
18,101.00 | 17,224.00 | |
Reinsurers' share | -1,500.70 | -1,464.80 |
16,600.30 | 15,759.20 | |
Technical provisions for insurance where policyholders assume the investment risk and for savings funds | 6,823.50 | 6,765.10 |
Reinsurers' share | -38.6 | -37.3 |
6,784.90 | 6,727.80 | |
Other provisions | 122.8 | 104.7 |
Deposits from insurers | 1,226.90 | 1,214.30 |
Debts | ||
From direct insurance | 892.9 | 783 |
From reinsurance | 7.3 | 14.6 |
Other debts | 1,851.80 | 1,340.30 |
2,752.00 | 2,137.90 | |
Accruals and deferred income | 677 | 753 |
TOTAL LIABILITIES OF INSURANCE DIVISION | 28,163.90 | 26,696.90 |
TOTAL LIABILITIES OF BANKING DIVISION | 4,751.20 | 4,998.80 |
Total liabilities | 35,158.50 | 34,238.60 |
Appendix 3 to Delta Lloyd NV press release, 1 August 2002
Delta Lloyd NV
Key figures per division for the first six months of 2002
(in millions of euros)
Delta Lloyd Insurance
2002 | 2001 | Change | |
GROSS PREMIUM INCOME | |||
- life | 850.9 | 846.4 | 1% |
- general | 380.8 | 359.6 | 6% |
- health | 246.3 | 235.5 | 5% |
1,478.00 | 1,441.50 | 3% | |
TECHNICAL ACCOUNT RESULTS | |||
- life | 15.5 | 31.2 | -50% |
- general | 2.2 | -0.6 | n.a. |
- health | -2.6 | -2.1 | -24% |
15.1 | 28.5 | -47% | |
PROFIT BEFORE TAX | 103.7 | 117.8 | -12% |
PROFIT AFTER TAX | 80.5 | 96.2 | -16% |
OHRA Insurance | 2002 | 2001 | Change |
GROSS PREMIUM INCOME | |||
- life | 98.3 | 136.6 | -28% |
- general | 42.5 | 43.1 | -1% |
- health | 244.4 | 234.3 | 4% |
385.2 | 414 | -7% | |
TECHNICAL ACCOUNT RESULTS | |||
- life | 6.8 | 4.1 | 66% |
- general | 0.5 | 3.3 | -85% |
- health | -2.2 | 0.7 | n.a. |
5.1 | 8.1 | -37% | |
PROFIT BEFORE TAX | 7.9 | 13 | -39% |
PROFIT AFTER TAX | 6.2 | 10.1 | -39% |
Asset Management and Property | |||
2002 | 2001 | Change | |
RETURN ON INVESTMENTS | 729.5 | 819 | -11% |
TOTAL ASSETS MANAGED | 42,174.00 | 44,183.9* | -5% |
Delta Lloyd Banking Group | |||
2002 | 2001 | Change | |
REVENUE | |||
Interest income | 106.2 | 83.6 | 27% |
Commission received | 24.5 | 15.5 | 58% |
130.7 | 99.1 | 32% | |
PROFIT BEFORE TAX | 0.5 | 0.3 | 67% |
PROFIT AFTER TAX | 0.9 | 0 | n.a. |
Delta Lloyd Deutschland | |||
2002 | 2001 | Change | |
GROSS PREMIUM INCOME, INSURANCE DIVISION | 291.4 | 267 | 9% |
REVENUE, BANKING DIVISION | 9.3 | 9.1 | 2% |
PROFIT BEFORE TAX | 5.8 | 2.8 | 107% |
PROFIT AFTER TAX | 1.3 | 1.6 | -19% |