Strong result for 2010 underscores robust position of Delta Lloyd Group

Transcription

1 Press release Strong result for 2010 underscores robust position of Delta Lloyd Group Commercial success; Gross written premium up 8% Simplification of organisation: costs down 5% Strong development of results (up 15%) Final dividend per ordinary share; total dividend for 2010: 1.00 (2009: 0.50) Equity (up 19%) and solvency demonstrate financial strength 1 Proposal subject to approval by the General Meeting of Shareholders. 1/ BC Amsterdam

2 Key figures (in millions of euros, unless otherwise stated) Change Operational result after tax and non-controlling interests % Result (IFRS) before tax and additional strengthening of longevity provision 1, n.a. Result (IFRS) before tax n.a. Result (IFRS) after tax and non-controlling interests n.a. Gross written premiums (excluding Germany) 4,829 4,486 8% Shareholders funds (excluding non-controlling interests) 4,621 3,892 19% Operating expenses % New Business Margin Life 1.0% 1.6% -60pp Life European Embedded Value 4,736 n.a. n.a. Group European Embedded Value 4,799 n.a. n.a. COR 98.0% 98.3% -31pp Key figures per Delta Lloyd ordinary share (in euros) 2010 Closing price on 31 December Shareholders funds Result (IFRS) after tax and non-controlling interests 3.75 Operational result after tax and non-controlling interests 2.54 Group European embedded value Proposed dividend (of which 0.40 already paid as interim dividend) 1.00 Operational and financial objectives Result 2010 Objective Life new business 2 Individual life insurance -0.2% > 2% Group life Insurance 1.9% > 1% General insurance Combined ratio across the cycle 98.0% < 98% Efficiency Target operating expenses 2010 (in millions of euros) 924 < 950 Shareholder return Operational return on equity 10.8% 8-12% Dividend pay-out ratio 3 40% 40-45% Capitalisation Delta Lloyd Group regulatory solvency 199% > % 2 Excluding Germany. This ratio is based on the percentage of dividend to be paid out in any one year, as set out in the dividend policy. 2/ BC Amsterdam

3 DELTA LLOYD GROUP IN Commercial success 4 Gross written premiums in Germany: 399 million (2009: 579 million). 3/ BC Amsterdam

4 2. Strong development of results Benefited from development of interest rates 4/ BC Amsterdam

5 3. Dynamic risk management Interest rate risk Equity risk 5/ BC Amsterdam

6 4. Equity and solvency demonstrate financial strength Equity and solvency (in millions of euros, unless otherwise stated) Change Total share capital and reserves 4,621 3,892 19% of which hard capital (tangible assets) 4,199 3,465 21% Solvency (IGD) 199% 201% -2pp Solvency (IFRS) 313% 256% 57pp BIS ratio 11.8% 12.3% -0.5pp Core Tier 1 ratio 9.4% 10.0% -0.6pp Funding: conversion of subordinated loan, successful launch of EMTN programme 6/ BC Amsterdam

7 Ratings: outlook to stable As at 9 February 2011: stable outlook S&P rating Delta Lloyd Levensverzekering NV A+ Delta Lloyd Schadeverzekering NV A+ A- Delta Lloyd Treasury BV A- 5. Customer focus in simplified organisation 7/ BC Amsterdam

8 6. Simplification of organisation drives cost savings Expenses (in millions of euros) Operating expenses (target) < 850 < 900 < 950 < 1,000 Operating expenses (actual) , Tighter strategic focus 8/ BC Amsterdam

9 Onno Verstegen to join the Executive Board 8. Reduction in average number of employees Average number of employees (in FTE) Total number of employees 6,665 6,994 Permanent 6,080 6,343 Temporary Dividend proposal 9/ BC Amsterdam

10 Dates for 2010 final dividend 10. Sustainable success 11. SEGMENTS A. Life Insurance 10/ BC Amsterdam

11 Longevity provision Life Insurance (in millions of euros) Change Total gross written premiums Life Insurance 7 3,350 3,063 9% - Netherlands 2,516 2,448 3% - Belgium % NAPI % Operational result after tax and non-controlling interests % IFRS result after tax and non-controlling interests n.a. 5 NAPI consists of 100% of the regular premiums and 10% of the single premiums 6 Liability adequacy test margin; the difference between the IFRS provision on the balance sheet and the best estimate of the required provision 7 Excluding Germany 11/ BC Amsterdam

12 Delta Lloyd in Belgium Delta Lloyd Germany Embedded value LIFE MCEV/EEV (in millions of euros) MCEV on 1 January 4,224 3,445 Value of new business Value of in-force business Operating earnings (LEOR) Exceptional items Asset outperformance Capital (re)allocation Transition to EEV EEV/MCEV on 31 December 4,736 (EEV) 4,224 (MCEV) 12/ BC Amsterdam

13 Value of new business 8 (in millions of euros, unless otherwise stated) Change Value of new business % Margin 1.0% 1.6% -60bp Total PVNBP 9 3,528 3,665-4% Of which single premiums 1,857 1,708 9% - Life insurance and savings % - Pensions and annuities 1,717 1,555 10% Of which regular premiums 1,672 1,957-15% - Life insurance and savings % - Pensions and annuities 1,303 1,581-18% B. General Insurance 8 Based on MCEV and excluding Germany. 9 The Present Value of New Business Premiums (PVNBP) is equal to the single premiums received plus the discounted value of new regular premiums, based on the same principles as used to calculate the value of new business according to MCEV. 10 Through 2009, gross written premiums relating to underwritten policies were recognised with a three-month delay. From the first quarter of 2010, actual written premiums relating to underwritten policies in a particular quarter are recorded in that quarter. Premiums written on underwritten policies in the final quarter of 2009 ( 43.5 million) have been included in the 2010 figures. 13/ BC Amsterdam

14 General Insurance (in millions of euros) Change Total gross written premiums 1,479 1,423 4% - Netherlands 1,415 1,364 4% - Belgium % Operational result after tax and non-controlling interests % IFRS result after tax and non-controlling interests % C. Bank Hedge accounting 14/ BC Amsterdam

15 Bank (in millions of euros) Change Total mortgage portfolio 15,462 14,354 8% - Netherlands 11,562 10,564 9% - Belgium 3,900 3,790 3% Mortgage origination 1,839 2,402-23% - Netherlands 1,421 1,470-3% - Belgium % Savings 5,939 5,671 5% - Netherlands 2,314 2,244 3% - Belgium 3,625 3,427 6% Growth in banksparen % Operational result after tax and non-controlling interests % IFRS result after tax and non-controlling interests n.a. Reorganisation of Delta Lloyd Bank in Belgium: new commercial focus Sale of private banking activities in the Netherlands and Germany 15/ BC Amsterdam

16 D. Asset Management Asset Management (in millions of euros) Change Operational result after tax and non-controlling interests % IFRS result after tax and non-controlling interests % Interests in South Europe and Ireland Sovereign and sub-sovereign fair value exposure as at 31 December (in millions of euros) Portugal Italy 893 2,267 Ireland Greece 119 1,251 Spain Total 1,155 3,833 Total assets under management as at 31 December (in millions of euros) Change Total assets under management Delta Lloyd Group 72,042 67,801 6% 16/ BC Amsterdam

17 E. Other Other (in millions of euros) Change Operational result after tax and non-controlling interests n.a. IFRS result after tax and non-controlling interests % 12. Outlook for 2011 Pull to par represents the convergence of a debt instrument to the nominal value over time. 17/ BC Amsterdam

18 13. Financial calendar / BC Amsterdam

19 For more information about this press release: Presentations of 2010 results More information About Delta Lloyd Group 19/ BC Amsterdam

20 Important information 20/ BC Amsterdam

21 Appendix: Financial summary for / BC Amsterdam