Executive board chairman Niek Hoek: "With these good results Delta Lloyd Group has shown that we do what we promise. The increase in our result and our strong capital base prove that our prudent approach pays."
Delta Lloyd Group highlights in first six months of 2009
- Possible listing will support strategic ambitions
- Result before tax doubles: €379 million (2008: €147 million)
- Net result rises sharply: €227 million (2008: €151 million)
- Focus on margin, expenses and good risk management bring profit recovery
- Gross premium income €2.8 billion, 21% below the 2008 level (€3.5 billion)
- Assets under management rise to €69.7 billion (2008: €68.2 billion)
- Increase in savings to €5.3 billion (2008: €4.0 billion)
- Delta Lloyd prominently active as an investor in Dutch companies through Project Holland Fonds and 5% participating interests
- Solvency: 244%
Executive board chairman Niek Hoek: “With these good results Delta Lloyd Group has shown that we do what we promise. The increase in our result and our strong capital base prove that our prudent approach pays. We have effectively hedged our investment portfolio against the risks in the financial markets and are benefiting from the opportunities that the current developments present. Our strong position enables us to steer our own course in the debate about the changing of the financial world.”
The result before tax doubled to €379 million, and the net result came out at €227 million. This includes €438 million of compulsory impairments on unrealised reductions in the value of the investment portfolio that principally arose in the second half of 2008 and the market value of which had not (fully) recovered in the first half of 2009. The Belgian insurance activities contributed strongly to the good result: the integration of Swiss Life Belgium and Delta Lloyd Life is progressing smoothly and successfully.
The gross premium income of Delta Lloyd Group decreased by 21% to €2.8 billion. Life in particular is facing pressure; premium income declined by 29% to €1.9 billion. Owing to the change in market conditions, the high new business level of 2008 was not achieved. This notably concerned single premium policies. The Life premium income advanced at OHRA and in Germany and Belgium. The General gross premium income increased by 4% to €830 million, partly because ABN AMRO Insurance has clearly regained its focus on customers and commerce. Mortgage origination in the Netherlands and Belgium was 7% higher at €887 million. In the sharply contracting Dutch market, Delta Lloyd Bank grew its market share to 1.8%. The mortgage market share in Belgium grew to 2.9%.
The shareholders’ equity of Delta Lloyd Group increased by 21% to €4.0 billion (year-end 2008: €3.3 billion). Solvency (excluding banking) is 244%. The Bank’s BIS ratio is 11.1%. The Group’s creditworthiness remains high, with an S&P rating of AA- (negative outlook).
Preparations started for IPO
Delta Lloyd Group is pleased to announce that together with Aviva it has commenced preparations to list Delta Lloyd Group on NYSE Euronext Amsterdam, subject to appropriate market conditions.
Executive board chairman Niek Hoek: “With an independent listing, we will take a new step appropriate to the development of Delta Lloyd Group. An IPO will support Delta Lloyd Group’s growth strategy, improve our strategic flexibility and further enhance our profile and brand. This step creates longterm value for Aviva’s shareholders as well as for our own future shareholders. Delta Lloyd Group is a solid company with a strong financial position and an IPO would give us room to consider options in the consolidation we foresee in the Netherlands and Belgium.
In view of the independent position of Delta Lloyd Group within the Aviva group, Aviva and Delta Lloyd Group are of the opinion that an IPO is the preferred way forward and is in the best interest of both companies. As part of the listing, Aviva would sell a minority of its existing holding in Delta Lloyd Group via an IPO. Although preparations have started, the ultimate decision to proceed with an IPO has yet to be made.
Contacts:
David Brilleslijper
Telephone: (+31) 20 594 44 88