Profit increase of 5%, premium income Life growth 18%.
Highlights
- Result before tax €366.8 million (+ 5%)
- Net result €297.1 million (+5%)
- Total gross premium income €4.1 billion (+11%)
- Record year for life activities (premium income +18%)
- Assets under management €44.2 billion (+ 21%)
- International expansion in Germany and Belgium
- Notable improvement results for General Insurance and Care
- Growth pension savings
- Name of the group with effect from 1 January 2002: Delta Lloyd NV
- Outlook 2002: clear growth of revenue and result
Key figures
(in millions of euros)
| 2001 | 2000 | % change | ||||
| REVENUE | ||||||
| Gross premium income life | 2,686.6 | 2,283.1 | 18 | |||
| Gross premium income general insurance | 751.8 | 773.7 | -3 | |||
| Gross premium income care | 707.9 | 685.4 | 3 | |||
| Total gross premium income | 4,146.3 | 3,742.2 | 11 | |||
| Other activities | 76.4 | 129.1 | -41 | |||
| Return on investments | 1,399.6 | 1,796.1 | -22 | |||
| Total revenue | 5,622.3 | 5,667.4 | -1 | |||
| RESULT | ||||||
| Delta Lloyd Verzekeringen | 249.2 | 244.2 | 2 | |||
| OHRA Verzekeringen | 52.9 | 41.8 | 27 | |||
| Delta Lloyd Bankengroep | 3.9 | 18.6 | -79 | |||
| Delta Lloyd Deutschland | 15.9 | 12.0 | 33 | |||
| Other | 44.9 | 33.2 | 35 | |||
| Total result before taxation | 366.8 | 349.8 | 5 | |||
| Net result | 297.1 | 284.1 | 5 | |||
| Shareholders' funds at 31 December | 2,353.9 | 2,878.2 | -18 | |||
| Total assets under management at 31 December | 44,183.9 | 36,618.0 | 21 | |||
| Staff numbers on a full-time basis at 31 December | 6,506 | 5,639 | 15 |
Delta Lloyd NV
As a customer and service oriented financial services provider, Delta Lloyd NV offers a wide range of products via distribution channels Delta Lloyd and OHRA, chosen by customers. Products include simple savings to complex insurances and financial planning. Delta Lloyd co-operates intensely and exclusively with independent insurance intermediaries and OHRA focuses directly on consumers. In addition to insurance operations, Delta Lloyd operates divisions for Asset Management, Banking, along with divisions in Germany, Belgium and on the Netherlands Antilles.
Report on the year 2001
2001 was an eventful year for the group, the second full financial year after the merger of Delta Lloyd and NUTS OHRA. The results were good despite deteriorating economic conditions. The results in General Insurance and Care in particular were notably better. Delta Lloyd Care produced much better results due to the positive effects of the reorganisation, and after the cancellation of some unprofitable contracts. On the other hand, the development in Asset Management was less positive, due to the effects of the recession in the financial markets. Fixed interest values and property investments achieved good results, but shares suffered from the deteriorating situation on the stock market.
Life business had a record year with an 18% higher premium income. Revenue in single premium policies was lower, which could be expected following the new tax measures, but there was growth in savings for old age.
Expansion is a spearhead in Delta Lloyd's strategy in Belgium. The Life operations must therefore be a significant player on the Belgian market within a few years, which was already apparent through the considerable growth of premium income in 2001. New mergers were effected in 2001. CGU Life and Norwich Union were added to the organisation.
The banking division was expanded sharply through the acquisition of Bank Nagelmackers in Belgium. In Germany the stake in Schroders Investment Management was acquired, which now operates under the name of Delta Lloyd Investment Managers.
2001 was a good year for Ennia Caribe. Despite the persistently unfavourable economic conditions on the Netherlands Antilles and Aruba, revenue developed to a satisfactory level and the result increased as well. There was a notable improvement of the underwriting result for general insurance.
Financial results 2001
The group's revenue consists for 74% of life assurances, asset management and banking activities, for 13% of care and for 13% of general insurance. 19% of the total revenue is realised outside the Netherlands. The group employs 6,506 staff on a full-time basis.
Delta Lloyd NV realised an increase in pre-tax profits last year of 5% to € 366.8 million. Gross premium income increased by 11% to € 4,146.3 million. Premium income from life assurances was 18% higher (€ 2,686.6 million) while general insurance premium income decreased slightly and premium income from care business increased. Shareholders' funds fell by 18% to € 2.4 billion. Total assets under management has meanwhile risen to € 44.2 billion, 21% higher than in 2000. As a result of the unsatisfactory developments on the international capital markets, especially in the last six months 2001, the return on investments on 2001 fell by 22% to € 1,399.6 million.
7 pillars strategy
The seven pillars have been adjusted to external developments.
- The market approach is defined by such essential views as multi-channel and multi-label with the administration performed by single back offices. Multi-channel first of all means a stronger intermediary distribution channel. This applies to Delta Lloyd itself which aims at the professional independent insurance agent.
OHRA is the direct writer in the group and is its second distribution channel. OHRA aims to be the largest e-insurer in the Netherlands.
The banking division is the third distribution channel, aiming at a top position in the banking area in the Benelux and at an excellent performance in sound niche markets with a focus on asset accumulation. - Life and Asset Management as key activity. Delta Lloyd and OHRA together are currently one of the largest asset managers in the Netherlands. The life activities are traditionally the group's operating area. The other activities support Asset Management and Life as much as possible.
- The development and retention of profitable activities in the area of General Insurance and Care Insurance in the Netherlands. This is essential as it provides a larger customer base which creates opportunities to sell additional products in the field of Asset Management and Life.
- Achieving top-three positions in defined markets. Delta Lloyd wants to compete only in markets in which it is one of the winners or can be one.
- The best possible synergy throughout the group. This is essential for achieving cost savings and an increased profitability. Expertise and knowledge must be interchangeable amongst all divisions in the group.
- Apart from organic growth, revenue has to improve by mergers, joint ventures and acquisitions. The strategy for take-overs is stringing beads. Mergers and take-overs will be focused mainly on a stronger distributive power and an added value to the group.
- An international focus on the Netherlands, Belgium, Luxembourg and Germany, instead of Northwest Europe.
Outlook 2002
The Executive Board expects that the financial markets will consolidate and may even further recover, but on a lower level than in the past few years. There will be an increased demand for financial products with guarantee characteristics. Our investment funds will receive more attention from investors because of the good spread of risks.
At the same time, premium income for Life, General Insurance and Care is expected to rise further. Existing tax advantages which are not yet used will give Life premium income a new incentive.
The Executive Board expects a clear growth of revenue and result for the group in 2002.
Delta Lloyd Verzekeringen
Delta Lloyd Insurance is the largest division in the group and consists of Delta Lloyd Life, Delta Lloyd General Insurance and Delta Lloyd Care. Delta Lloyd Verzekeringen is the intermediary company working together intensely and exclusively with professional independent intermediaries.
2001 was the year in which the strategy drawn up in 2000 was further established. Essential elements are focus on customers and a best possible structure of the distribution. Delta Lloyd Verzekeringen aims at the highest customer satisfaction and, at the same time, at the realisation of its financial targets by means of intense relationships with the intermediaries. The results for General Insurance, and Care exceeded the expectations. This strategy implied some purposeful loss of (unprofitable) business.
Total premium income increased by 14% to € 2,602.9 million in 2001. This increase was due mainly to DL Life (24%).
The results for Delta Lloyd Insurance rose by 2% to € 249.2 million. Total revenue for Delta Lloyd Verzekeringen increased by 4% to € 3,692.9 million. Delta Lloyd Care realised growth compared with the 2000 results. The technical pre-tax results for Delta Lloyd Life fell by 7% to € 242.0 million. The results for Delta Lloyd General Insurance were € 18.1 million, which is a considerable improvement compared with the negative result in 2000.
OHRA Verzekeringen
OHRA Insurance is the direct division in the group and consists of OHRA Life, OHRA General Insurance, OHRA Care and OHRA Income and Absence. NSF (Nationaal Spaarfonds) is included in the figures for OHRA Life.
2001 was a satisfactory year for OHRA. Despite a series of radical measures for a redesign of the business process the overall result increased. The result for general insurances was clearly higher than in 2000, due mainly to a relatively favourable claims year as well as a cautious policy pursued for provisions.
Result and premium income for Life lagged slightly behind last year. The public were hesitant in respect of single premium policies and life annuity products in particular, which was due to the introduction of new tax legislation.
The development of the results of Care improved, as in 1999 and 2000, with an acceptable outcome in 2001. Revenue fell slightly as a result of the cancellation of some unprofitable group contracts.
OHRA set up a new business unit in 2001, Income and Absence, with a focus on small and medium sized business with very specialised products and services.
OHRA achieved a pre-tax result of € 52.9 million, which is a major increase of 27% compared with 2000. Total gross premium income rose by 5% compared with 2000 to € 747.4 million.
Asset Management
The Asset Management division consists of Delta Lloyd Asset Management and OHRA Asset Management.
For the asset management division of Delta Lloyd, 2001 was a year with mixed feelings. After years of prosperous developments on the stock exchanges, particularly in 1998 and 1999, the market obviously deteriorated, with falling share prices. The asset management division was affected as well, so that share funds in particular booked negative results. On the other hand, bonds could make a profit as a result of an ongoing fall in interest rates. On balance, the inflow of new money into the Delta Lloyd and OHRA funds was satisfactory, this applies to both private and institutional investors. This was due mainly to the fact that premiums for many types of life assurance are paid annually.
The return on investments decreased by 24% to €1,278.8 million in 2001. New money in the investment funds increased by 41% to € 1,342.0 million. The Asset Management divisions holds assets under management of € 42.5 billion, excluding Property for € 1.7 billion.
Delta Lloyd Bankengroep
The Delta Lloyd Banking division includes Delta Lloyd Bank and OHRA Bank in the Netherlands, Delta Lloyd Securities (Amsterdam/Antwerp) and Delta Lloyd Bank in Belgium, which includes Bank van Limburg and Bankunie. At the end of the year under review the important acquisition of Bank Nagelmackers in Belgium was completed. The results of this acquisition will not be completely incorporated in the figures of the annual accounts until 2002.
2001 was a year of many changes for the Delta Lloyd banking division. The deteriorating situation on the financial markets was felt and the integration process of the various banking activities demanded time and commitment. Despite these conditions, the results for the year were positive, although the profit target was not achieved. This urged the bank to draw up a cost reduction programme in the course of the year.
The banking division could not withdraw from economic developments. Falling stock prices resulted in reduced commission income. Mortgage issues increased sharply, like in previous years. Margins were slightly under pressure due to keener competition in the market and a greater price consciousness amongst customers. This is caused partly by more transparency and more reference options via the Internet.
The result of the banking division fell to € 3.9 million. On the other hand, new mortgage loans increased sharply: € 1,286.3 million, an increase of 24% compared with 2000. The managed mortgage portfolio has meanwhile risen to € 4.9 billion.
Delta Lloyd Deutschland
The major divisions of Delta Lloyd Deutschland are the insurance companies Berlinische Leben, Hamburger Leben, Griess & Heissel Bankiers and Delta Lloyd Investment Managers (former Schroders Investment Management, acquired last year).
2001 was quite satisfactory for Delta Lloyd Deutschland. Results were slightly above expectation and the increased rate of new Life business was in line with the market. On the other hand, premium income for single premium policies was slightly behind plan, but both the annual premium policies and the single premium policies increased when compared with 2000. All activities took place also under the name of Delta Lloyd from 1 July 2001. The conversion to the euro single currency had been successfully completed by mid 2001. Four Delta Lloyd investment funds were introduced to the market. The distribution channel was reorganised which meant closing down some smaller regional offices, as occurred in 2000. The so-called tied-agents portfolio was reorganised as well.
The pre-tax result for Delta Lloyd Deutschland amounted to € 15.9 million in 2001. Total gross premium income increased by 7% in comparison with 2000.
For more information, please apply to:
David Brilleslijper, Manager Corporate Communication
Delta Lloyd NV.
Telephone +31 20 594 44 88 or david_brilleslijper@deltalloyd.nl
Appendices to Delta Lloyd NV press release annual figures 2001
- Summarised Consolidated Profit & Loss Account 2001
- Consolidated balance sheet at 31 December 2001
- Movements in shareholders' funds at 31 December 2001
- Key figures per division over 2001
- Explanatory notes to the financial summaries at 31 December 2001.
Appendix 1 - Press release annual figures 2001
Delta Lloyd N.V.
Summarised Consolidated Profit & Loss account for 2001
(in millions of euros)
| 2001 | 2000 | % change | |||
| RESULT TECHNICAL ACCOUNT | |||||
| - Life | 144.1 | 130.3 | 11 | ||
| - General | -7.5 | -26.2 | 71 | ||
| - Care | 8.0 | -4.1 | 295 | ||
| 144.6 | 100.0 | 45 | |||
| Investment income | 1,220.6 | 1,621.2 | -25 | ||
| Charges relating to investments | -199.2 | -154.0 | 29 | ||
| Allocated investment return to technical account | -795.9 | -1,206.7 | -34 | ||
| Other income | 63.7 | 26.1 | 144 | ||
| Other expenses | -67.0 | -36.8 | 82 | ||
| RESULT BEFORE TAXATION | 366.8 | 349.8 | 5 | ||
| Tax from ordinary conduct of business | -67.4 | -64.8 | 4 | ||
| RESULT AFTER TAXATION | 299.4 | 285.0 | 5 | ||
| Third party share | -2.3 | -0.9 | -156 | ||
| NET RESULT | 297.1 | 284.1 | 5 | ||
Appendix 2 - Press release annual figures 2001
Delta Lloyd N.V.
Consolidated balance sheet at 31 December 2001
(in millions of euros)
| 31-12-2001 | 31-12-2000 | ||
| Assets | |||
| INSURANCE | |||
| Intangible assets | |||
| Goodwill | 20.0 | 20.7 | |
| Investments | |||
| Land and buildings | 1,720.4 | 1,634.2 | |
| Participating interests | 52.3 | 52.9 | |
| Other financial investments | 19,696.4 | 18,234.0 | |
| Securitised mortgage loans | -1,520.8 | -553.0 | |
| Deposits with ceding undertakings | 75.8 | 73.4 | |
| 20,024.1 | 19,441.5 | ||
| Investments for the benefit of life assurance policyholders who bear the risk and saving fund investments | 6,701.9 | 6,320.7 | |
| Debtors | |||
| From direct insurances | 357.3 | 339.9 | |
| From reinsurance | 16.6 | 17.9 | |
| Other debtors | 492.0 | 557.1 | |
| 865.9 | 914.9 | ||
| Other assets | |||
| Tangible fixed assets | 40.9 | 36.7 | |
| Cash and bank balances | 412.8 | 327.5 | |
| Other assets | 66.6 | 44.6 | |
| 520.3 | 408.8 | ||
| Payments and accrued income | |||
| Accrued interest and rent | 344.4 | 356.3 | |
| Deferred acquisition costs | 204.5 | 219.0 | |
| Other prepayments and accrued income | 169.4 | 165.3 | |
| 718.3 | 740.6 | ||
| TOTAL ASSETS INSURANCE OPERATIONS | 28,850.5 | 27,847.2 | |
| BANK | |||
| TOTAL ASSETS BANK | 5,388.1 | 3,144.5 | |
| | | ||
| Total assets | 34,238.6 | 30,991.7 |
Delta Lloyd N.V.
Consolidated balance sheet at 31 December 2001
(in millions of euros)
| 31-12-2001 | 31-12-2000 | ||
| Liabilities | |||
| Group capital and reserves | |||
| Group capital | 2,353.9 | 2,878.2 | |
| Perpetual subordinated convertible | |||
| loan | 172.4 | 172.4 | |
| Fund for general banking risks | 9.3 | 8.0 | |
| 2,535.6 | 3,058.6 | ||
| Minority interest | 7.3 | 11.0 | |
| Insurance | |||
| Technical provisions | |||
| Unearned premiums and unexpired risks | 383.2 | 375.2 | |
| For life assurance | 14,973.1 | 13,736.1 | |
| For claims outstanding | 1,260.6 | 1,129.6 | |
| For bonuses and rebates | 607.1 | 984.8 | |
| 17,224.0 | 16,225.7 | ||
| Reinsurance | -1,464.8 | -1,036.6 | |
| 15,759.2 | 15,189.1 | ||
| Investments for the benefit of life assurance policyholders who bear the risk and saving fund investments | 6,765.1 | 6,413.6 | |
| Reinsurance | -37.3 | -30.5 | |
| 6,727.8 | 6,383.1 | ||
| Other provisions | 104.7 | 146.5 | |
| Deposits received from insurers | 1,214.3 | 780.4 | |
| Creditors | |||
| From direct insurance | 783.0 | 751.0 | |
| From reinsurance | 14.6 | 18.7 | |
| Other debts | 1,340.3 | 1,118.6 | |
| 2,137.9 | 1,888.3 | ||
| Accruals and deferred income | 753.0 | 647.1 | |
| Total liabilities insurance | 26,696.9 | 25,034.5 | |
| BANK | |||
| Total liabilities bank | 4,998.8 | 2,887.6 | |
| | | ||
| Total liabilities | 34,238.6 | 30,991.7 |
Appendix 3 - Press release annual figures 2001
Delta Lloyd N.V.
Movements in shareholders' funds at 31 December 2001
(in millions of euros)
| 31-12-2001 | 31-12-2000 | ||
| Balance sheet value at 1 January | 2,887.4 | 2,360.5 | |
| - effect system reform | -9.9 | -6.6 | |
| - corrected balance sheet value at 1 January | 2,878.2 | 2,353.9 | |
| Movements in: | |||
| - value of land and buildings | 42.0 | 60.0 | |
| - indirect return | -223.0 | -199.5 | |
| - value of other financial investments | -636.0 | 485.4 | |
| - goodwill | - | 6.0 | |
| - taxes relating to the above movements | 77.6 | -18.7 | |
| - retained profits | 297.1 | 284.1 | |
| - dividend payout from reserves | -82.0 | -93.0 | |
| Balance sheet value at 31 December | 2,353.9 | 2,878.2 | |
Appendix 4 - Press release annual figures 2001
2001 Key figures per division
(in millions of euros)
Delta Lloyd Verzekeringen
| 2001 | 2000 | %change | ||||
| GROSS PREMIUM INCOME | ||||||
| - life | 1,649.9 | 1,325.3 | 24 | |||
| - general | 590.9 | 589.0 | 0 | |||
| - care | 362.1 | 363.7 | 0 | |||
| 2,602.9 | 2,278.0 | 14 | ||||
| RESULT TECHNICAL ACCOUNT | ||||||
| - life | 86.0 | 101.1 | -15 | |||
| - general | -4.0 | -36.3 | 89 | |||
| - care | -2.3 | -6.9 | 67 | |||
| 79.7 | 57.9 | 38 | ||||
| RESULT BEFORE TAXATION | 249.2 | 244.2 | 2 | |||
| RESULT AFTER TAXATION | 213.3 | 200.9 | 6 | |||
| OHRA Verzekeringen | ||||||
| 2001 | 2000 | %change | ||||
| GROSS PREMIUM INCOME | ||||||
| - life | 245.6 | 283.1 | -13 | |||
| - general | 88.3 | 103.7 | -15 | |||
| - care | 413.5 | 322.7 | 28 | |||
| 747.4 | 709.5 | 5 | ||||
| RESULT TECHNICAL ACCOUNT | ||||||
| - life | 26.1 | 11.2 | 133 | |||
| - general | 8.3 | 8.7 | -5 | |||
| - care | 10.4 | 2.7 | 285 | |||
| 44.8 | 22.6 | 98 | ||||
| RESULT BEFORE TAXATION | 52.9 | 41.8 | 27 | |||
| RESULT AFTER TAXATION | 46.8 | 27.4 | 71 | |||
| Asset Management division | ||||||
| 2001 | 2000 | %change | ||||
| RETURN ON INVESTMENTS | 1,272.8 | 1,678.8 | -24 | |||
| TOTAL ASSETS UNDER MANAGEMENT | 42,463.5 | 36,618.0 | 16 | |||
| Delta Lloyd Bankengroep | ||||||
| 2001 | 2000 | %change | ||||
| REVENUE | ||||||
| Interest | 147.7 | 159.3 | -7 | |||
| Commission | 57.1 | 127.9 | -55 | |||
| 204.8 | 287.2 | -29 | ||||
| RESULT BEFORE TAXATION | 3.9 | 18.6 | -79 | |||
| RESULT AFTER TAXATION | 5.5 | 16.2 | -66 | |||
| Delta Lloyd Deutschland | ||||||
| 2001 | 2000 | %change | ||||
| GROSS PREMIUM INCOME INSURANCE | 619.0 | 579.6 | 7 | |||
| REVENUE BANKING OPERATIONS | 19.3 | 14.3 | 35 | |||
| RESULT BEFORE TAXATION | 15.9 | 12.0 | 33 | |||
| RESULT AFTER TAXATION | 11.0 | 6.0 | 83 |
Appendix 5 - Press release annual figures 2001
Delta Lloyd N.V.
Explanatory notes to the financial statements at 31 December 2001
To the financial statements in this press release applies that the same principles for valuation and accounting have been used as in the annual accounts 2001. These principles changed compared to 2000 for the method of determining the technical reserves for yield guarantees. The effect on the net result for 2000 amounts to €2.6 million negative. The figures for 2000 have been adjusted for reasons of comparison.
Other information
- A dividend of € 82 million will be paid on 2001
- No shares were issued or purchased in 2001
- The corporate structure was not essentially changed compared with last year
- This is an unaudited press release
- Delta Lloyd NV is a member of the international insurance group CGNU Plc.