Delta Lloyd Group has today published its annual report for 2010. This is the Group’s first-ever integrated financial and sustainability report.
• First integrated financial and sustainability report
• Embedded Value Report 2010 now available
• Yield curve market developments
Delta Lloyd Group has today published its annual report for 2010. This is the Group’s first-ever integrated financial and sustainability report. The report is exclusively available online in Dutch and English via the Delta Lloyd Group website.
Executive Board chairman Niek Hoek says in the introduction: “This integrated report reflects that commercial entrepreneurship and sustainability are inextricably linked. We are a sustainable financial services provider committed to delivering security and achieving solid progress. Our performance in 2010 reaffirms this.”
Key figure
| (in millions of euros, unless otherwise stated) | 2010 | 2009 | Change |
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| Operational result after tax and non-controlling interests | 422 | 366 | 15% |
| Result (IFRS) before tax and additional strengthening of longevity provision | 1,457 | -124 | na |
| Result (IFRS) before tax | 891 | -124 | na |
| Result (IFRS) after tax and non-controlling interests | 621 | -124 | na |
| Gross written premiums (excluding Germany) | 4,829 | 4,486 | 8% |
| Shareholders' funds (excluding non-controlling interests) | 4,621 | 3,892 | 19% |
| Operating expenses | 924 | 976 | -5% |
| New Business Margin Life | 1.0% | 1.6% | -60pp |
| COR | 98.0% | 98.3% | -31pp |
Embedded value report 2010
Delta Lloyd has also today published its Embedded Value Report 2010. This report is exclusively available online in English via the website of Delta Lloyd Group.
Embedded value
| (in millions of euros) | 31 December 2010 | 31 December 2009 |
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| EEV | MCEV |
| Life embedded value | 4,736 | 4,224 |
| Non-covered business | 442 | 678 |
| Group EV (gross of non-controlling interests) | 5,178 | 4,902 |
| Less non-controlling interests | -379 | -407 |
| Group EV (net of non-controlling interests) | 4,799 | 4,495 |
Yield curve market developments
The financial statements that were published today refer to the impact of the changed composition of the AAA collateralised bond curve on 1 April 2011 as a ‘subsequent event’.
When the preliminary annual figures were released on 3 March 2011, we mentioned the prevailing uncertainties surrounding the creditworthiness of some of the bonds in the collateralised AAA bond curve. Due to credit rating downgrades in March 2011, a number of these bonds no longer meet the set criteria and have therefore been excluded from the curve with effect from 1 April 2011. Compared to 31 December 2010, the 10-year yield curve as at 1 April 2011 was about 40 basis points lower.
A lower curve results in higher life insurance business provisions, which could have a significant negative impact on IFRS result before tax. The calculation of the regulatory (IGD) solvency is mainly based on the ECB AAA yield curve. Compared to 31 December 2010, the ECB AAA yield curve as at 1 April 2011 was 34 basis points higher
on the 10-year yield curve.
Delta Lloyd Group does not consider the development of the yield curves to be sufficiently material to revise its expectations for the operational result and dividend for 2011.
From today, more information can be found on the Delta Lloyd Group website about the most recent yield curves as at 1 April 2011 that are used to determine the results for the Q1 2011 Interim Management Statement, which is to be published on 17 May 2011. The information on the yield curve can be accessed via: www.deltalloydgroep.com
An overview of relevant IFRS sensitivities is included in paragraph 6.1.7.1 of the financial statements 2010.
-ends-
For more information about this press release:
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Investor Relations +31 (0)20 594 96 93
Notes to editors
About Delta Lloyd Group
Delta Lloyd Group is a financial services provider offering life insurance, general insurance, asset management and banking products and services. Delta Lloyd Group’s target markets are the Netherlands and Belgium. The Group operates primarily under the brand names of Delta Lloyd,
OHRA and ABN AMRO Insurance in the Netherlands, and under the Delta Lloyd brand name in Belgium. Delta Lloyd Group employs 6,080 permanent staff (FTE) and is listed on NYSE Euronext Amsterdam.