We stand today at the beginning of 2007, a historic year for Delta Lloyd group.
We stand today at the beginning of 2007, a historic year for Delta Lloyd group.
Before I go any further, I would like to say a few words about Frans van de Veer, who passed away last Wednesday evening after being ill for several months. As chairman of Delta Lloyd Germany and previously of Delta Lloyd Asset Management and Delta Lloyd banking group, Frans was one of the driving forces behind Delta Lloyd group. We will all miss his expertise, friendship and above all his optimism. Particularly in this historic year of 2007.
200 years ago the Hollandsche Societeit began its activities on the Herengracht in Amsterdam. The Hollandsche Societeit was the first life insurer in mainland Europe to calculate its premiums using a scientific method based on mortality tables. It was far ahead of its time in this. After several mergers at the end of the '60s, the Hollandsche Societeit became Delta Lloyd and through further alliances grew to become Delta Lloyd group as we know it today.
This is also a historic year because in 2007 we are implementing our new strategy aimed at increasing our market share in the Netherlands by 50% in the next five years. Such growth is both necessary and ambitious. Particularly after 2006, a year in which our growth of market share stagnated.
2006 showed that clients are becoming more and more interested in the details of our products and the associated costs and returns. Our clients and society in general are demanding increased clarity about our products and transparency regarding costs, commission and contents of products. At Delta Lloyd group, we see this as a good development. We will take the lead and communicate even more clearly about our products and services. Only by doing so can we retain the trust of our clients or win it back where necessary.
However, increasing transparency will put pressure on margins. So, in order to remain profitable, increased efficiency will be required. Not just for Delta Lloyd group, but throughout the market. This is another reason why 2007 is an important year. The market is demanding lower and lower costs. We will have to carry on working to bring our costs down, both in absolute euros and expressed as cost per policy, for example.
We will have to make progress as far as the sharing of back offices and accounting services are concerned this year. As Delta Lloyd group, we have established clearly defined projects in the last few months which we will implement in the next two years. These are not only concerned with cost efficiency. The sharing of accounting services and product development also results in greater cooperation and exchange within the group and therefore in increased knowledge, service and expertise which can be applied for the benefit of our clients. This represents a solid basis for further growth as you don’t achieve more market share by just looking at the cost side. That just gives you a basis for setting a competitive price in the market.
So, the main feature of 2007 will be growth in volumes. It is also our ambition to strengthen our market position further and strive to be the market leader through selected mergers and acquisitions or new joint venture initiatives.
In order to achieve this, we will also have to give a great deal of ourselves. As management, we must take on our responsibility and apply and accept even more clearly the ultimate responsibility for running the business and the various projects. This requires passionate commitment to the company and its clients on the part of all staff of the group. Along with a willingness to change and improve.
From a financial point of view, 2006 has further strengthened the basis of the Delta Lloyd group. We are therefore in an excellent position to improve our standing in 2007 and to continue to be successful for the next 200 years. I wish you all and those close to you an extremely good, happy and above all healthy 2007.
On behalf of the executive board of Delta Lloyd group.
Niek Hoek, chairman
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More information:
Angélique Bronneberg
Press Officer
Telephone: (020) 594 44 88
E-mail: cc@deltalloyd.nl