Delta Lloyd Group showed good commercial results in 2009, with strong performance in “banksparen”, doubling in market share in mortgages and a net inflow of €320 million in Delta Lloyd retail investment funds from third-party distribution.
- Gross written premium Delta Lloyd Group 2009
Delta Lloyd Group showed good commercial results in 2009, with strong performance in “banksparen”, doubling in market share in mortgages and a net inflow of €320 million in Delta Lloyd retail investment funds from third-party distribution. Gross written premium of €5,065 million was lower than the record year 2008 (€5,911 million). The main reason was the lower volume of single-premium group pension contracts written as a consequence of the financial crisis.
| Gross written premium | Year | Year |
| 2009 | 2008 | |
| (in millions of euros) | ||
| Life | 3,642 | 4,533 |
| General Insurance | 1,423 | 1,378 |
| Total | 5,065 | 5,911 |
Life
Life gross written premium was affected by slow activity in the market in the first half of 2009, but a slight recovery in the market was noted in the last six months of the year. Delta Lloyd Group continued to focus on profitable growth in new group pension contracts. In addition, regulations limited the scope for underfunded Dutch pension funds to transfer their pension obligations to insurers. Delta Lloyd concluded two large group contracts that made positive volume contributions.
Delta Lloyd Group wrote total new Life business (PVNBP) of €4,050 million, 21% lower than in 2008 (€5,121 million). The present value of new business premiums (PVNBP) is equal to the single premiums received plus the present value of new regular premiums, calculated on the basis of the same principles used to calculate new business in the MCEV, (see appendix for more details on premium volumes).
The shift away from unit-linked insurance to more traditional forms of life insurance and “banksparen1” is visible in the life segment. Delta Lloyd Group occupies a strong position in this evolving market.
General Insurance
Delta Lloyd Group showed stable performance in challenging market conditions with intense competition. Gross written premium totalled €1,423 million in 2009, a 3% increase from 2008.
Bank and investments
In the Netherlands and Belgium mortgage origination advanced by 30% to €2,402 million in 2009 (2008: €1,848 million). In a contracting mortgage market (fewer properties were sold) this translated into an expansion of Delta Lloyd Group’s market share. In the Netherlands the Delta Lloyd Group market share almost doubled, jumping from 1.3% in 2008 to 2.5% in 2009.
In 2008, Delta Lloyd Group became the first provider to launch a tax-efficient “banksparen” product as an alternative for unit-linked life insurance products. Delta Lloyd Group was thus able to build a strong position in the market for “banksparen”. In 2009 “banksparen” rose six-fold to a total of €297 million (2008: €48 million).
Net new assets flowing into Delta Lloyd retail investment funds from third-party distribution increased to €320 million, compared to an outflow of €410 million in 2008. However, reduced premium income from large pension contracts ultimately led to a lower total net inflow into the Delta Lloyd investment funds of €449 million compared to €581 million in 2008.
-ends-
1 The Dutch Saving Bank Act (Wet banksparen, 2008) allows banks to offer “banksparen”, with saving products that enjoy the same tax advantages as a life insurance policy. “Banksparen” is used for pension accumulation, mortgage loan repayment and home mortgage savings accounts.
More information:
Delta Lloyd Group
Corporate Communications & Investor Relations
Amstelplein 6, 1096 BC Amsterdam
Press
Telephone: +31 (0)20 594 44 88
E-mail: CC@deltalloyd.nl
Analysts
Telephone: +31 (0)20 594 96 93
E-mail: IR@deltalloyd.nl
Appendix
| New business life insurance | Year | Year |
| (On a PVNBP base) | 2009 | 2008 |
| (in millions of euros) | ||
| Single premiums | ||
| Life insurance and savings | 364.7 | 511.2 |
| Pensions and annuities | 1,589.8 | 2,392.0 |
| Total single premiums | 1,954.5 | 2,903.1 |
| Regular premiums | ||
| Life insurance and savings | 410.6 | 627.0 |
| Pensions and annuities | 1,684.9 | 1,590.8 |
| Total regular premiums | 2,095.5 | 2,217.8 |
| Total | 4,050.0 | 5,120.9 |
About Delta Lloyd Group
Delta Lloyd Group is a financial services provider offering life insurance, general insurance, fund management and banking products and services. Delta Lloyd Group’s target markets are the Netherlands and Belgium. In the Netherlands it mainly operates under the brand names of Delta Lloyd, OHRA and ABN AMRO Insurance, in Belgium under the Delta Lloyd brand.
Delta Lloyd Group's goal is to be recognised as the most reliable and highly regarded insurer and financial services provider in its targeted markets, offering customers security through risk assurance, income protection and wealth creation. In the medium term, Delta Lloyd Group aims to become one of the three largest insurance companies in the Dutch market and one of the five largest insurance companies in the Belgian market.
Delta Lloyd Group believes that the strategy will be successful in enhancing shareholder value and enabling Delta Lloyd Group to deliver long-term benefits to all of its stakeholders: customers, shareholders, distribution partners, employees, suppliers and the community at large.