CZ and Delta Lloyd group have reached agreement on an strategic alliance, in which CZ will take over the health insurance business of Delta Lloyd group based in The Hague from 1 January 2008.
CZ and Delta Lloyd group have reached agreement on an strategic alliance, in which CZ will take over the health insurance business of Delta Lloyd group based in The Hague from 1 January 2008. The health insurance marketing and distribution activities conducted under the Delta Lloyd, OHRA and ABN AMRO Insurance labels will remain with the Delta Lloyd group. This enables CZ exclusive access to the distribution network of Delta Lloyd group for sale of its health insurance products, while Delta Lloyd group will obtain the exclusive right to offer health insurance related, general insurance and life products to CZ customers. CZ will also take over, on behalf of all health insurers, the implementation of "The Exceptional Medical Expenses Act" for the complete population of The Hague and surroundings.
The integration of the Delta Lloyd group health businesses into CZ constitutes a step towards the fulfilment of The Future Secured strategy of Delta Lloyd group. One of the assumptions underlying this strategy is that a minimum customer base of 2 million policyholders is required in order to secure longer-term profitability in the Dutch health insurance market. This combination of CZ and Delta Lloyd group reaffirms CZ's solid top-three position and creates an extremely healthy base in the Dutch market with 3.3 million customers (CZ 2.6 million and Delta Lloyd group 700,000) and a market share of 20%. The proposed alliance is designed to reinforce the core qualities and specialised services of CZ and Delta Lloyd, whilst giving customers of Delta Lloyd Group access to excellent and highly competitive health insurance. In addition, CZ customers can henceforth make use of the health insurance related, life and general insurance products offered by the various Delta Lloyd group brands.
Delta Lloyd group will complete the previously announced reorganisation at Delta Lloyd and OHRA Health before the transfer to CZ. On 1 January 2008, the approximately 350 employees of Delta Lloyd and OHRA Health (including the health service office Haaglanden) in The Hague will migrate to CZ, while the location in The Hague will be maintained in the coming years.
Niek Hoek, CEO of Delta Lloyd group: "The combination of Delta Lloyd Group and CZ gives customers access to a broad range of high-quality insurance products at an attractive price. This creates the opportunities for customers and providers that the market mechanism in the health sector is intended for."
Mike Leers, CEO of CZ, added: "With this alliance we can offer our policyholders a complete competitive package and more healthcare per euro premium."
Regulators, competition authorities, trade unions and works councils have meanwhile been informed of the agreement. The agreement is subject to relevant regulatory approvals.
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For further information:
Delta Lloyd Group, Corporate Communications:
David Brilleslijper, 020 - 594 4488
CZ, Public Relations Department:
Dirk-Jan Westerwoudt, 013-5949413 or 06 22995325
Note for the editors:
Delta Lloyd group is a financial service provider with business units in the Netherlands, Germany and Belgium. In 2006 the group achieved a net result of €711 million on total income of €8 billion with over 6,400 employees. Delta Lloyd group has 700,000 health insurance customers.
Health insurer CZ has 2.6 million customers and over 2,600 employees. The turnover of CZ amounts to €4.3 billion, excluding the implementation of the Exceptional Medical Expenses Act.