Focusing on capital, performance and customer
- 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% (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 indicators1|
|(in millions of euros, unless otherwise stated)||FY 2016||FY 2015||Change|
|Solvency II Standard formula (SF) ratio||143%||131%||12pp|
|Solvency II net capital generation||172||n.a.||n.a.|
|Holding company cash||510||-319||260%|
|Dividend per share in euro||0.10||0.212||-51%|
|Gross operational result||915||940||-3%|
|Net IFRS result||231||128||80%|
|Shareholders' funds after non-controlling interests||3,185||2,569||24%|
|Solvency II Life value new business||27||n.a.||n.a.|
|Solvency II NAPI||491||587||-16%|
|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
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.
- 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.
 reflecting exceptional weather in June and restructuring charges
 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.
 Based on analysis of comparable peer group during 2015 and not necessarily indicative of uplift for Delta Lloyd. Subject to regulatory approval