Netherlands: Delta Lloyd Group leads pensions market

Against the backdrop of challenging economic conditions Delta Lloyd Group achieved gross premium income growth of almost 30%.

Gross premium income up 29% to €4.4 billion

Against the backdrop of challenging economic conditions Delta Lloyd Group achieved gross premium income growth of almost 30%. In the first half of 2008 the group was again successful in winning group pension contracts for various large companies. The current turbulence in the financial markets is also having an impact on Delta Lloyd Group. However, the group's financial position remains robust.

According to executive board chairman Niek Hoek, "It is specifically now, in today's difficult financial climate, that Delta Lloyd Group is demonstrating its strength by achieving strong growth in income. The results may be below the record year of 2007, but our financial position in the Dutch insurance market is stronger than ever. The strength of our position means we have every confidence that we will be able to fulfil our ambition of being one of the top three insurers in the Netherlands by 2010."

Financial

  • Premium income rises 29% to €4.4 billion, primarily due to large pension contracts.
  • Net result of €138 million. This was lower than in the record year of 2007 (€380 million), owing to the volatile financial markets (rising long-term interest rates and increasing credit spreads).
  • Solvency remains high at 245%.
  • Shareholders' equity falls to €4.2 billion as a result of equity prices and valuation effects.

Operational

  • Life premium income increases 53% to €2.7 billion, General by 10% to €790 million.
  • New production: NAPI rises strongly to €293 million.
  • German operations show some signs of recovery after a number of difficult years; premium volume up 3%.

Strategic

  • Acquisition of Swiss Life Belgium completed; Delta Lloyd is now one of the top five life insurance companies in Belgium.
  • Talks about termination of ABNAMRO Insurance joint venture are ongoing.
  • New distribution channels via the internet (iZio, NSF, Virtes) gain momentum.
  • Discussions of unit-linked insurance cast a shadow over the market. Delta Lloyd Group sees a solution as imperative if customer confidence is to be restored.

Delta Lloyd Group key figures


(in millions of euros)

First half

2008

First half

2007

Change

Result before tax

146

446

(67%)

Result after tax

138

380

(64%)

Gross premium income

4,383

3,400

29%

- of which gross premium income in the Netherlands

3,960

3,022

31%

Shareholders' equity

4,213

5,366

(21%)


Contact
David Brilleslijper
tel (+31) 20 594 44 88

Download full announcement in English (PDF 179KB) 
Download full announcement in Dutch (PDF 180KB)

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