Focusing on capital, performance and customer
(Thomson Reuters ONE) -
* Solvency ratio of 143% (2015: 131%), towards the lower end of our target
capital range, reflecting adverse longevity development and DNB guidance on
LAC DT to the industry
* Solvency II net capital generation of ? 172 million, after the impact of
exceptional weather of ? 30 million, equivalent to underlying net capital
generation of ? 202 million
* Holding company cash structurally improved to ? 510 million (2015: ? -319
million)
* Operational expenses down 5% to ? 589 million (2015: ? 619 million), well
below our target of ? 610 million for 2016, 2018 target revised down to
? 530 million
* Business performance continues to be a priority, value of new business of
? 27 million and combined ratio (COR) of 105.4%[1] (2015: 96.2%), executing
on pricing and product design
* While we are making good progress on our priorities, we have agreed, in the
best interest of all stakeholders, to recommend the acquisition by NN Group
and build a new combined company
* Delta Lloyd solvency safeguarded, should NN Group acquisition not proceed,
from net capital generation, merger of Belgian and Dutch life activities and
implementation of PIM
* Final cash dividend for 2016 suspended, reflecting offer by NN Group
Hans van der Noordaa, Chairman of the Executive Board:
"In 2016, we successfully executed a range of actions to strengthen our capital
and cash position. We have made good progress on initiatives to improve our
client focus, business performance and reduce costs, and we expect to see
results of these during 2017. However, we operate in a difficult environment,
with margins consistently under pressure, record low interest rates and
challenging regulatory developments. We believe the combination with NN Group is
in the best interest of our stakeholders and will create a leading insurance and
pension company in the Dutch market, with strong presence in Belgium and an
attractive proposition in asset management and banking."
Key performance indicators(1)
-------------------------------------------------------------------------------
(in millions of euros, unless
otherwise stated) FY 2016 FY 2015 Change
-------------------------------------------------------------------------------
Solvency II Standard formula (SF) 143% 131% 12pp
ratio
-------------------------------------------------------------------------------
Solvency II net capital generation 172 n.a. n.a.
-------------------------------------------------------------------------------
Holding company cash 510 -319 260%
-------------------------------------------------------------------------------
Dividend per share in euro 0.10 0.21(2) -51%
-------------------------------------------------------------------------------
Gross operational result 915 940 -3%
-------------------------------------------------------------------------------
Operational expenses 589 619 -5%
-------------------------------------------------------------------------------
Net IFRS result 231 128 80%
-------------------------------------------------------------------------------
Shareholders' funds after non- 3,185 2,569 24%
controlling interests
-------------------------------------------------------------------------------
Solvency II Life value new 27 n.a. n.a.
business
-------------------------------------------------------------------------------
Solvency II NAPI 491 587 -16%
-------------------------------------------------------------------------------
Combined ratio 105.4% 96.2% 9.2pp
-------------------------------------------------------------------------------
GWP General Insurance 1,452 1,353 7%
-------------------------------------------------------------------------------
¹ KPIs are expressed after the effect of exceptional weather of ? 40 million
equivalent to ? 30 million post tax
(2) Based on the number of
ordinary shares at 31 December
2016
Strategic and business overview
In 2016, we made good progress on implementing our Closer to the Customer
strategy and our management priorities of capital, performance and customer. We
successfully executed our capital plan, our cash position is substantially
improved and we are well on track for the implementation of the Partial Internal
Model (PIM). However, during the fourth quarter, our capital position was
negatively impacted by adverse longevity development and DNB guidance on LAC DT
to the industry. Consequently, our Solvency II ratio declined to 143% (Q3
2016: 156%).
Our operational performance continues to be a priority, with a disappointing
Life SII VNB of ? 27 million and a COR of 105.4%. However, we outperformed on
our operational expenses target for 2016, revised down further our 2018 expense
target and we have taken action to structurally improve technical results in
Life and GI, including pricing, product design and exiting unattractive and
unprofitable business segments. We aim to be the preferred insurer for our
customers and business partners. In 2016, we increased our NPS customer
satisfaction scores and, for the fifth consecutive year, intermediaries and
financial advisors rated us the number one pension provider in the Netherlands.
In December 2016, Delta Lloyd Algemeen Pensioenfonds (APF) received a licence to
administer a general pension fund.
Delta Lloyd operates in a highly competitive, mature market, where margins on
both life and non-life products are consistently under pressure. Organisational
agility and scale benefits are necessary to deliver acceptable margins and make
ongoing investments. In addition, the regulatory and macro environment remains
challenging with volatile markets, record low interest rates and low yields. We
believe that consolidation in the Dutch market will, and should, take place in
the near or mid-term future.
On 23 December, NN Group and Delta Lloyd announced that they reached a
(conditional) agreement on an improved recommended public offer for the entire
issued and outstanding ordinary share capital of Delta Lloyd. NN Group and Delta
Lloyd agreed to certain non-financial covenants in respect of corporate
governance, post-closing legal merger, strategy, organisation, integration and
employees. The offer price of ? 5.40 (cum dividend) represents a premium of
approximately 38% relative to the average closing price during the last month
and a premium of approximately 55% relative to the average closing price during
the last three months prior to the initial announcement.
We recommend shareholders vote in favour of the offer and all resolutions at the
EGMs to be held on 29 March 2017. Both the Executive and Supervisory Boards of
Delta Lloyd support and recommend the improved offer. We believe that the
combination of the Dutch and Belgium activities of both companies will result in
an overall stronger platform within the Benelux from which to provide enhanced
customer propositions and generate shareholder return. The combination will have
a robust balance sheet and an improved solvency ratio.
Outlook
Following the announcement of the agreement with NN Group, we are working
towards achieving the shareholder, regulatory and antitrust approvals required
to complete the transaction. We expect these in the second quarter. Meanwhile,
we have started high level preparation for the planned integration to ensure a
seamless transition for our stakeholders.
It is important that the business maintains its progress on management
priorities as a standalone company, until such time as all approvals are
achieved. In that context, we remain committed to our existing targets to bring
operational expenses down to ? 530 million in 2018 and Solvency II net capital
generation of ? 200-250 million per year over time. We also continue to work on
our existing plans for the PIM, until completion of the transaction.
We expect to see results of our initiatives to improve our technical
profitability in Life and GI during 2017. We remain confident in the solvency
position of Delta Lloyd as a standalone business should the NN Group acquisition
not take place, reflecting among other things, net capital generation as well as
the strong progress and potential for solvency benefits of the merger of our
Belgian and Dutch life activities and the PIM.
Dividend
We have decided not to pay a final dividend for 2016, in view of NN Group's
recommended offer for Delta Lloyd. Any final dividend paid would reduce the
purchase price of ? 5.40 per ordinary share.
The total dividend for 2016 equals the interim dividend of ? 0.10 per ordinary
share, which was paid in September 2016.
Conference call full year results on 23 February 2017
On Thursday 23 February 2017, Delta Lloyd will host a conference call for
analysts (in English), which can also be followed via audiocast on our website.
Conference call: 23 February 2017, 09.30 am (CET)
NL: +31 20 716 8427, PIN code: 52073371#
UK: +44 203 139 4830, PIN code: 52073371#
This press release and the analyst presentation are also available at
www.deltalloyd.com.
Important information
* This press release contains the figures of the full year 2016 for Delta
Lloyd NV ('Delta Lloyd'), inclusive of Delta Lloyd Levensverzekering, Delta
Lloyd Schadeverzekering, ABN AMRO Verzekeringen, Delta Lloyd Life Belgium,
Delta Lloyd Asset Management and Delta Lloyd Bank.
* The results and income of the ABN AMRO Verzekeringen joint venture are fully
consolidated in the figures. Adjustment for the 49% interest of ABN AMRO
Bank Netherlands is included in 'non-controlling interests' in the
consolidated income statement.
* The figures in this press release have not been audited. They are partly
based on the financial supplement 2016 and partly on internal management
information reports.
* Certain statements contained in this press release that are not historical
facts are 'forward-looking statements'. Forward-looking statements are
typically identified by the use of forward looking terminology such as
'believes', 'expects', 'may', 'will', 'could', 'should', 'intends',
'estimates', 'plans', 'assumes', 'anticipates', 'annualised', 'goal',
'target' or 'aim' or the negative thereof or other variations thereof or
comparable terminology, or by discussions of strategy that involve risk and
uncertainties. The forward-looking statements in this press release are
based on management's beliefs and projections and on information currently
available to them. These forward-looking statements are subject to a number
of risks and uncertainties, many of which are beyond Delta Lloyd's control
and all of which are based on management's current beliefs and expectations
about future events.
* Forward-looking statements involve inherent risks and uncertainties and
speak only as of the date they are made. Delta Lloyd undertakes no duty to
and will not update any of the forward-looking statements in light of new
information or future events, except to the extent required by applicable
law. A number of important factors could cause actual results or outcomes to
differ materially from those expressed in any forward-looking statement as a
result of risks and uncertainties facing Delta Lloyd and its subsidiaries.
Such risks, uncertainties and other important factors include, among others:
(i) changes in the financial markets and general economic conditions, (ii)
changes in competition from local, national and international companies, new
entrants in the market and self-insurance and changes to the competitive
landscape in which Delta Lloyd operates, (iii) the adoption of new, or
changes to existing, laws and regulations including Solvency II, (iv)
catastrophes and terrorist-related events, (v) default by third parties
owing money, securities or other assets on their financial obligations, (vi)
equity market losses, (vii) long- and/or short-term interest rate
volatility, (viii) illiquidity of certain investment assets, (ix) flaws in
underwriting assumptions, pricing and/or claims reserves, (x) the
termination of or changes to relationships with principal intermediaries or
partnerships, (xi) the unavailability and unaffordability of reinsurance,
(xii) flaws in Delta Lloyd's underwriting, operating controls or IT systems,
or a failure to prevent fraud, (xiii) a downgrade (or potential downgrade)
of Delta Lloyd's credit ratings, and (xiv) the outcome of pending,
threatened or future litigation or investigations, or other factors referred
to in this press release.
* Should one or more of these risks or uncertainties materialise, or should
any underlying assumptions prove to be incorrect, Delta Lloyd's actual
financial condition or results of operations could differ materially from
those described herein as anticipated, believed, estimated or expected.
* Please see the Annual Report for the year-ended 31 December 2015 for a
description of certain important factors, risks and uncertainties that may
affect Delta Lloyd's businesses.
--------------------------------------------------------------------------------
[1] reflecting exceptional weather in June and restructuring charges
[2] Pro forma estimate at year-end 2016 of +7pp being greater than +5pp pro
forma at half-year 2016 announced in October, reflecting largely greater
contribution from non eligible capital.
[3] Based on analysis of comparable peer group during 2015 and not necessarily
indicative of uplift for Delta Lloyd. Subject to regulatory approval
Read the full press release:
http://hugin.info/142905/R/2081248/783872.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Delta Lloyd via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 23.02.2017 - 07:13 Uhr
Sprache: Deutsch
News-ID 525955
Anzahl Zeichen: 16219
contact information:
Town:
Amsterdam
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 342 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Focusing on capital, performance and customer"
steht unter der journalistisch-redaktionellen Verantwortung von
Delta Lloyd (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
