Compleet 2001 eng

Transcription

Compleet 2001 eng

• actor • acupuncturist • administrative clerk • administrator • aerodynamicist aerospace physiological technician • agricultural engineer • agronomist • air-traff
breeder • anodizer • antenna installer • anthropologist • apiculturist • appraiser • apprenticeship consultant • aquarist • archeologist • architect • archivist • a
operator • auditor • autoclave operator • automat-car attendant • avionics technician • back padder • bag cutter • baggage checker • bagger • baker • balance ass
• beadworker • beam racker • beater engineer • bed laster • bedder • beekeeper • bell captain • bell maker • delta lloyd nv annual report 200 1 • bellhop • be
de balancer • blaster • blintze roller • blood-donor recruiter • board attendant • boatbuilder • boatswain • body wirer • body-make-up artist • bodyguard • boiler
ker • brazer • brewing director • bricklayer • briner • broker • broommaker • broth mixer • brown-stock washer • brusher • budget analyst • buffer • bulb filler
r • chicle-grinder feeder • chief bank examiner • child monitor • child support officer • chiller operator • chilling-hood operator • chin-strap cutter • chip tester
er • coach driver • cobbler • cocoa-bean roaster • coil binder • coiler • coin collector • collector • colleter • color expert • color-printer operator • colorer •
om worker • cooper • coppersmith • copyist • core-composer • coremaker • cork grinder • coroner • corrosion-control fitter • corrugated-fastener driver • cosm
rusher • cuff cutter • culler • cupboard builder • curator • currency counter • cutter • cytologist • cytotechnologist • dairy scientist • dance therapist • dance
denture-model maker • deodorizer • department head • deputy • dermatologist • design printer • desk officer • desk-pen-set assembler • detacker • detailer • dete
cator • distiller • distresser • district customs director • district supervisor • ditch rider • diver • division manager • dock hand • doctor • doffer • dog catcher
er • dude wrangler • dulser • dumper • dust-mop maker • duster • dye-lab technician • dynamite reclaimer • dynamite-cartridge crimper • ear-muff assembler • ech
nics-design engineer • element winding machine tender • elevating-grader operator • elevator operator • eligibility worker • embalmer • emblem drawer-in • embosse
ort • estate planner • estimator • etcher • ethnologist • examiner • excavator • executive • exhibit artist • expediter • exterminator • eyeglass-frame truer • fabric
ator • fettler • fiber technologist • field artillery crewmember • field engineer • file clerk • filler • film developer • film loader • film spooler • final assembler
or extractor • flesher • flight attendant • flocker • floor attendant • floor worker • flour blender • flower picker • flumer • flusher • flux mixer • fly tier • foa
r • freezer operator • fringer • fruit distributor • fumigator • fun-house operator • funeral attendant • fur trimmer • furniture cleaner • furniture designer • fu
et inspector • gasser • gauger • gem cutter • general agent • general claims agent • general helper • general manager • geneticist • geographer • geologist • geo
ator • graphologist • grated-cheese maker • greaser • grip • grizzly worker • groover • group worker • group -sales representative • guard • guide • guider • gun-r
rer • heater • helicopter pilot • helper • high rigger • histopathologist • historian • historic-site administrator • history-card clerk • histotechnologist • hog ten
hot-top -liner helper • hotel clerk • hothouse worker • house builder • house worker, general • house-mover supervisor • house-piping inspector • human resource
haracter • import-export agent • impregnation operator • incinerator plant laborer • industrial designer • industrial engineer • industrial-truck operator • infantr
nstrument mechanic • insurance clerk • integrated circuit fabricator • integrated circuit layout designer • intelligence clerk • intelligence research specialist • in
jet-dyeing-machine tender • jewel blocker and sawyer • jewel-hole driller • jeweler • jigger • jigsawyer • jinrikisha driver • job analyst • job-printer apprentice • joc
lamination spinner • laminator • lamp -shade joiner • landscape specialist • lane-marker installer • lapel padder, blindstitch • laser technician • laserist • last-pa
ner-machine-operator helper • lining inserter • linseed-oil-press tender • linter tender • linter-saw sharpener • livestock-yard attendant • loader • loan officer •
ake-up artist • making-line worker • malt roaster • management analyst • manager • mangle tender • mangler • manicurist • manipulator • mannequin • manufactu
erk • mechanical engineer • mechanism assembler • media director • medical assistant • medical physicist • melter • memorial designer • mender • mercury washer •
miner • mineralogist • mining engineer • mirror installer • mixer • mock-up builder • model maker • mold maker • molder • money counter • monogram-and-letter pa
ture projectionist • motor operator • motor polarizer • motor-room controller • motor-vehicle-light assembler • motorboat mechanic • motorcycle subassembler •
rapist • musical-string maker • musician, instrumental • mycologist • nail-assembly-machine operator • nailer • naphtha- washing-system operator • naphthalene op
• neutralizer • newscaster • newspaper carrier • newspaper-delivery driver • newswriter • nib finisher • nicker • night-patrol inspector • nitrating-acid mixer • nit
l control machine operator • numerical control machine set-up operator • numerical-control drill operator, printed circuit boards • numerical-control router oper
ospecting • observer, seismic prospecting • obstetrician • occupational analyst • occupational therapist • occupational-safety-and-health inspector • oceanograph
oiler • oiling-machine operator • oilseed-meat presser • olive brine tester • oliving-machine operator • opaquer • open-developer operator • opener • operating engi
Mission
… Delta Lloyd nv aims to be one of the
leading financial services providers in
the Benelux and Germany…
… through our involvement and focus
on responsibility we offer high-quality
products and services, with the best
possible value for our customers,
independent intermediaries and shareholders…
… we aim to contribute to the development of an affluent society, by offering
financial products and services focused on
asset accumulation, income protection
and risk management…
… the group puts emphasis on the
customer, our employees act accordingly
and can be called to account in this
respect. Delta Lloyd provides a dynamic
and inspiring working environment
which offers its employees many
2
opportunities…
… the partnership with our intermediaries is a key success factor for
further growth. Additionally, we are
making the most of the opportunities
through the direct sales channel.
This includes such key factors as the
Internet and Operational Excellence…
Delta Lloyd nv
New group name with effect from 1 January 2002
Executive Board and supporting units
Delta Lloyd
ohr a
Asset Manage-
Delta Lloyd
Delta Lloyd
Delta Lloyd
Delta Lloyd
Insurance
Insurance
ment Division
Banking
Property
Deutschland
België
Ennia Caribe
Division
As a customer and service oriented financial
Delta Lloyd will develop and intensify its inter-
services provider, the Delta Lloyd nv group
national position with an emphasis on life
offers a wide range of products via agent and
assurance, banking and asset management
direct distribution channels Delta Lloyd and
activities.
ohr a. Products include simple savings to
complex insurance and financial planning.
Delta Lloyd nv is a member of the international
Delta Lloyd co-operates intensely and exclusively
insurance group cgnu Plc. Stichting Nuts Ohra
with independent insurance intermediaries and
holds an 8 % stake in the company via preference
ohr a focuses directly on consumers. In addition
shares, if the conversion right is exercised.
to insurance operations, Delta Lloyd operates
divisions for Asset Management and Banking,
along with divisions in Germany and Belgium.
Supervisory Board and Executive Board
Situation on 31 December 2001
s u p e r v i s o r y b oa r d
J. A.N. van Dijk (63), chairman
V. A.M. van der Burg (56), deputy chairman
C.P. J. Appeldoorn (63)
L.J. M. Berndsen (59)
H.C. Broeksma (56)
R. Harvey (51)
R.H.P.W. Kottman (56)
J. Oskam (54)
A.B. Wyand (58)
e x e c u t i v e b oa r d
N.W. Hoek (45), chairman
P.J.W.G. Kok (47)
C.H. Tesselhoff (61)
A.A. Kullberg * (49), until 31 March 2002
d e l ta l l o y d n v
Spaklerweg 4
1096 ba Amsterdam
po box 1000
1000 ba Amsterdam
Telephone + 31 20 594 67 00
* non-statutory member
Contents
7
8
key figures
n o t e s f r o m t h e s u p e r v i s o r y b oa r d
a n n ua l a c c o u n t s
70
Consolidated balance sheet after appropriation of profits
72
Consolidated profit and loss account
73
Consolidated Cash flow statement
t h e e x e c u t i v e b oa r d ’ s r e p o r t
74
General notes to the annual accounts
12
Delta Lloyd nv
81
Explanatory notes to the consolidated balance sheet
20
Delta Lloyd Insurance
96
Explanatory notes to the consolidated profit and loss account
24
Delta Lloyd Life
98
Consolidated technical account Life assurance
27
Delta Lloyd General Insurance
99
Explanatory notes to the consolidated technical account
30
Delta Lloyd Care
33
ohr a Insurance
101
Consolidated technical account General Insurance
36
ohr a Life
102
Notes to the consolidated technical account General Insurance
38
ohr a General Insurance
105
Consolidated technical account Care insurance
40
ohr a Care and Income
106
Notes to the consolidated technical account Care insurance
43
Asset Management Division
107
Consolidated profit and loss account mediation activities
49
Delta Lloyd Banking Division
108
Consolidated profit and loss account Bank
52
Delta Lloyd Property
109
Explanatory notes to the consolidated expenses and commission
54
Delta Lloyd Deutschland
112
Balance sheet of Delta Lloyd nv
57
Delta Lloyd België
113
Profit and loss account of Delta Lloyd nv
60
Ennia Caribe
114
Notes to the balance sheet and profit and loss account of
62
Data Processing
64
Human Resource Management
119
Outline of major group companies
66
Corporate Governance & Risk Management
122
Statutory provisions on the allocation of profits
123
Auditors’ report
124
key figures 1992–2001
126
Life assurance
Delta Lloyd nv
o t h e r d e ta i l s
This is a translation of the original published in Dutch.
6
Key figures
In millions of euros
2001
2000
revenue
Gross premium income Life assurance
Gross premium income General insurance
Gross premium income Care insurance
1.940,92,686.6
751.8
707.9
2,283.1
773.7
685.4
Total gross premium income
4,146.3
3,742.2
Other activities
76.4
1,399.6
5,622.3
1,796.1
Investment income
Total revenue
129.1
5,667.4
result
Consolidated result
Life assurance
General insurance
Care insurance
Banking activities
Holding
290.8
18.8
22.8
3.1
31.3
Tax
Third party share
Net result
– Delta Lloyd Banking division
– Delta Lloyd Deutschland
– Other
11.8
21.6
12.6
249.2
52.9
3.9
15.9
44.9
Result before taxation
Shareholders’ funds
349.8
- 64.8
285.0
7
- 0.9
key figures
Result after tax
– ohra Verzekeringen
- 8.7
366.8
- 67.4
299.4
- 2.3
297.1
Result before tax
– Delta Lloyd Verzekeringen
312.5
284.1
244.2
41.8
18.6
12.0
33.2
366.8
349.8
2,353.9
2,878.2
Number of staff on a full-time basis at
31 December
– Delta Lloyd Verzekeringen
– ohra Verzekeringen
– Delta Lloyd Banking division
– Other
2,742
1,038
1,311
986
429
2,340
1,086
782
961
470
6,506
5,639
Notes from the Supervisory Board
Annual Accounts and appropriation of
Supervisory Board meetings The Super-
profits In accordance with the provisions
visory Board met five times in the year
of article 34 of the Articles of Association
under review. Issues included the
we have adopted the annual accounts for
Corporate Plan 2002–2004, take-over of
the year 2001 drawn up by the Executive
Bank Nagelmackers and the reorganisa-
Board. We submit these accounts to you
tion of the Belgian division, the strategic
for consideration in accordance with
development of Delta Lloyd Deutschland
paragraph 4 of article 34. Taking into
(including the Riesterplan), the labour
account the certifying report of the
market, consequences for the company
auditors PricewaterhouseCoopers nv,
of the September 11 attacks, marketing
which is included in the annual report,
activities of Pension and Savings Fund
we recommend that the shareholders
Act products, change of name for the
should approve these annual accounts.
Holding, composition of the Supervisory
In accordance with article 35 of the
Board, responsibilities of the Executive
Articles of Association we have given
Board, as well as quarterly reports,
our approval to the resolution of the
annual figures and reports from the
Executive Board that the profit of
Audit Committee and the Remuneration/
€ 297.1 million in the annual accounts
Nomination Committee. The discussion
be reserved and that an amount of
of the quarterly and annual figures was
€ 82.0 million be paid as a dividend from
often attended by the Group Finance
the reserves.
general manager and the auditors
PricewaterhouseCoopers. The members
8
The year 2001 The merger of Delta Lloyd,
of the Executive Board attended all of
ohra and Nuts demanded much commit-
the meetings. In general, all Supervisory
ment from the organisation, but the
Board members were present at these
integration is nearly completed. At the
meetings.
same time there was important international expansion in Belgium. Bank-
Tripartite consultation of Supervisory
unie and Bank van Luxembourg were
Board, Executive Board and Central
combined and Bank Nagelmackers was
Works Council The annual meeting
acquired, to be added to the organisation
between Supervisory Board, Executive
in Belgium, which trades under the name
Board and Central Works Council took
of Delta Lloyd Belgium. The integration
place in October. The general theme in
of Life activities in Belgium was carried
this meeting was Corporate Values and
through firmly.
the participants informally discussed
The business in ohra was drastically
about each other’s values and moral
reorganised. E-business activities were
standards.
extended both for Delta Lloyd and ohra.
The existing strategy was given a sharper
focus.
The name of the Holding Delta Lloyd Nuts
Ohra nv was given the short and powerful name of Delta Lloyd nv with effect
from 1 January 2002. The organisation
has two labels in the Netherlands:
Delta Lloyd for intermediary business
and ohra for the direct writer channel.
Meetings of the Audit and Remuneration/
Composition of the Executive Board
Nomination Committees The Audit
Mr. J.E. Jansen had been chairman of the
Committee and the Remuneration/
Executive Board until 1 April 2001 when
Nomination Committees are composed
he reached retirement age. He was
of members of the Supervisory Board to
succeeded as chairman of the Executive
deal with specific tasks of the Super-
Board by Mr. N.W. Hoek, whose place in
visory Board.
the Board was filled by Mr. P.J.W.G. Kok.
The Audit Committee met five times last
was appointed chairman of the Executive
year. Subjects under discussion included
Board in 1992. He led a radical reorgani-
reports from Group Accounting about the
sation which turned the company into
quarterly and annual figures, compliance,
a more modern and commercial
composition of the Audit Committee,
organisation. Highlights during his
matching (financial) reports with cgnu,
chairmanship included the take-over of
the Asset Liability Management of
German Life insurer Berlinische Leben
Delta Lloyd Life, the developments in
and the important merger with Nuts
(financial) reporting by insurance
Ohra. Mr. Jansen is a man of great merit
companies (Traas Committee and ias,
and we are most grateful to him for his
International Accounting Standards)
contribution to the development of the
and the Audit Committee’s Terms of
group and the pleasant way in which we
Reference.
have worked together.
The Audit Committee meetings were
Mr. S.M. Slottko, non-statutory member
regularly attended by the Group Finance
of the Executive Board, also retired on
general manager, the Group Audit &
1 April 2001. He was not succeeded in the
Consultancy general manager, the
Executive Board. Mr. P.K. Medendorp
Group Actuary and the auditors
succeeded Mr. Slottko as chairman of the
PricewaterhouseCoopers.
Executive Board of Berlinische Leben.
The Remuneration/Nomination
At the end of the year under review,
Mr. Jansen joined Delta Lloyd in 1991, he
Amsterdam, 15 February 2002
Mr. A.A. Kullberg, chairman of Delta Lloyd
Insurance, announced that he wished to
J. A.N. van Dijk, chairman
composition and remuneration of the
leave the company in 2002. Mr. Kullberg
V. A.M. van der Burg, deputy chairman
Executive Board.
has dedicated himself particularly to the
C.P. J. Appeldoorn
integration of Delta Lloyd and Nuts Ohra.
L.J.M. Berndsen
Composition of the Supervisory Board
The Supervisory Board thanks Messrs
H.C. Broeksma
Mr. J.H.M. van Engelshoven retired by
Slottko and Kullberg for their valuable
R. Harvey
rotation from the Supervisory Board of
dedication to the company and their
R.H.P.W. Kottman
Delta Lloyd on 1 April 2001. We thank him
efforts for the expansion of the group.
J. Oskam
for his pleasant co-operation and his
sharp contributions to the discussions.
Mr. Van Engelshoven’s departure did not
create a vacancy in the Supervisory Board.
The composition of the Board is again in
line with agreements made between
cgnu, Delta Lloyd and the Central
Works Council, i.e. nine members, two
of whom recommended by cgnu and
two recommended by the Central Works
Council.
A.B. Wyand
n o t e s f r o m t h e s u p e r v i s o r y b oa r d
Committee met three times in 2001 and
discussion issues included succession,
9
10
The Executive Board’s Report
Delta Lloyd nv
2001
2000
– Gross premium income
4,146.3
3,742.2
– Return on investments
1,399.6
1,796.1
76.4
129.1
5,622.3
5,667.4
– Other activities
Revenue
Result
DEL
LLOYD
(before taxation)
Staff numbers
366.8
349.8
2,353.9
2,878.2
6,506
5,639
Financial results 2001
Objectives 2002
Delta Lloyd nv realised an increase – Focus on customers
in pre-tax profits last year of 5 % to
– Premium income growth at
€ 366.8 million. Gross premium
least 15 % (10 % organic growth,
income increased by 11 % to
5 % acquisitions)
€ 4,146.3 million. Premium
– Return on capital of at least 13 %
income from life assurances was
– Emphasis on brand names
18 % higher (€ 2,686.6 million) and
Delta Lloyd and ohr a
general insurance premium
– Extra focus on pension products
income remained virtually the
– Increase in expenses 2 % lower
same, premium income from care
than premium income growth
business increased. Shareholders’
– Delta Lloyd: best place to work
funds fell by 18 % to € 2.4 billion,
– Set up joint back offices for
Total assets under management
General Insurance and Life
have meanwhile risen to € 44.2
billion, 20 % higher than in 2000.
As a result of the unsatisfactory
developments on the international
share markets, especially in the
last six months of 2001, the return
TA
on investments in 2001 fell by 22 %
to € 1,399.6 million.
The group’s revenue consists of
life assurances, asset management
and banking activities for 74 %,
care 13 % and general insurance
13 %. 19 % of the total revenue is
13
realised outside the Netherlands.
The group employs 6,506 staff on a
full-time basis.
‘Strategy and corporate values accentuated’
14
2001, the second full financial year after
International expansion In line with
the merger of Delta Lloyd and Nuts Ohra,
the outlined strategy of ongoing inter-
was an eventful year for the group, Delta
nationalisation, Bank Nagelmackers was
Lloyd nv. The results were good despite
acquired in Belgium, which included a
deteriorating economic conditions.
branch in Luxembourg. cgu Life and
The results in General Insurance and Care
Norwich Union Life were acquired from
in particular were noticeably better.
cgnu, and the name was changed to
Delta Lloyd Care produced much better
Delta Lloyd Life. Bankunie and Bank van
results after some major unprofitable
Limburg were merged into Delta Lloyd
contracts were cancelled. On the other
Bank België. In Luxembourg, the
hand, the development in Asset Manage-
insurance company cu Luxembourg was
ment was less positive, due to the effects
acquired. By the end of 2001 Delta Lloyd
of the recession in the financial markets.
owned more than 100 banking offices in
Fixed interest values and property invest-
Belgium and Luxembourg. A complete
ments achieved good results, but shares
package of banking, investment and
suffered from the deteriorating situation
insurance can be sold in Belgium.
on the stock market.
The strong brand of Nagelmackers is
The banking division was expanded
used for private banking.
sharply through the take-over of Bank
Nagelmackers in Belgium. Life business
Expanding market share in Germany
had a record year; revenue in single
The name of our business in Germany
premium policies was lower, due to the
was changed. Berlinische Leben is now
new tax measures, but there was growth
re-named Delta Lloyd Deutschland. The
in savings for old age. The conversion to
purchase of a ‘Kapitalanlagegesellschaft’
the euro single currency was success-
made it possible to supply investment
fully completed. Major improvements
funds to customers in Germany. The
were introduced in the field of auto-
German organisation achieved consider-
mation. A major reorganisation process
able growth in market share. The strategy
was carried out in ohra, with the aim
of the international expansion in Europe
of making the organisation more
was defined more clearly to the effect that
commercial and decisive.
the area of operations is confined to the
Benelux and Germany instead of the
wider area of Northwest Europe.
The general strategy implies that the
complete range of insurance, investment
and banking products is supplied in
Germany, Belgium and Luxembourg,
whereas general insurance and care are
limited to the Netherlands situation.
General insurance and Care in the
Netherlands remain core business for
the Group.
The post-tax results of Ennia Caribe, the
Economic conditions After many years
The 7-2-7 model A detailed operating
activities of Delta Lloyd on the Nether-
of excellent economic growth, the
model was developed for the Delta Lloyd
lands Antilles, increased. This was due
conditions deteriorated noticeably in
group. It contains seven pillars, two
partly to a stricter underwriting policy
2001, first in the United States and later
strong brands and seven corporate values.
in care insurance and a reorganisation
also in Europe. The terrorist attacks on
Together these define the company’s
of the Motor portfolio. Ennia Caribe has
the wtc in New York and the Pentagon
long-term strategy.
meanwhile become market leader on
in Washington negatively affected this
the Antilles. The share of life business in
development. The direct impact of these
the portfolio has risen in excess of 50%.
attacks were very small for Delta Lloyd
as we have hardly any interests in the
ohra said goodbye to some insurance
United States, but the weaker financial
offices in which we had minority
markets may affect Delta Lloyd in due
interests. This is in line with Delta
time although they cannot yet be
Lloyd’s policy of working together with
quantified. Asset Management was
independent intermediaries and the
affected; there was a negative develop-
position of ohra as a direct writer.
ment after 25 quarters of continuous
The completion of this process was
growth and good results. Some ohra
made very cautiously, which resulted,
investment funds achieved negative
for instance, in good social plans for
results, as did the Delta Lloyd investment
employees involved.
funds, albeit to a lesser extent given the
different investment philosophy. Positive
The implementation of the merger was
results were achieved in property and
pursued energetically, with the central
fixed interest values.
focus on the customer, despite the many
These developments led to changed views
sations. We would therefore express our
amongst the public at large: they have
appreciation of the loyalty and commit-
become aware that financial markets
ment of all employees.
may under-perform and that investment
The name of the Holding Delta Lloyd Nuts
means risks. More uncertainty in the
Ohra nv was changed to Delta Lloyd nv,
world resulted in more focus of people
a short, powerful name which is also
on investment and insurance products
very clear in the international arena.
with a certain guarantee. Uncertainty
has suddenly become an essential
phenomenon. All Delta Lloyd operating
companies have reacted decisively to this
trend. This great uncertainty has made
people aware of the value of insurance.
The events in the United Stated have led
to a discussion in the insurance industry
as to whether terrorism should be
included in the concept of War and
Kindred Risks, and should therefore be
excluded from the cover. The discussion
about this subject continues.
15
internal adjustments and reorgani-
The seven pillars The seven pillars have
pillar 6
been adjusted to external developments:
growth, revenue has to improve by
some very clear trends in the insurance
mergers, joint ventures and acquisitions.
world. The market is most competitive
The strategy for take-overs is stringing
and developing towards fully open
by such essential views as multi-channel
beads. Mergers and take-overs will be
competition. The number of competing
and multi-label with the administration
focused mainly on a stronger distributive
parties has risen and is more inter-
performed by single back offices. Multi-
power and an added value to the group.
national. Consumers stand up for their
pillar 1
The market approach is defined
Acquisitions. Apart from organic
An international focus on the
The insurance industry There were
channel first of all means a stronger
pillar 7
intermediary distribution channel.
Netherlands, Belgium, Luxembourg and
they take the trouble to compare policy
This applies to Delta Lloyd itself which
Germany, instead of Northwest Europe.
quotations.
insurance agent.
Seven corporate values Seven corporate
At the same time, the consumer is right
ohra is the direct writer in the group
values were defined in 2000. The values
to desire transparency. Financial products
and is its second distribution channel.
clearly explain what the group stands for,
must be clear and in plain language.
ohra aims to be the largest e-insurer in
what the group wants and they determine
Consumers must be able to understand
the Netherlands.
the corporate culture and identity. These
expenses charged, commission and
The banking division is the third
key values were adopted throughout the
surrender values. In this respect, the
distribution channel, aiming at a top
company in 2001. All employees have
introduction of the so-called Return and
position in the banking area in the
played the corporate values game in
Risk Code was a good idea. Delta Lloyd
Benelux, an excellent performance in
order to anchor these values in their
supports this trend and has also adopted
sound niche markets with a focus on
mentality. The seven values:
the policy lines of gidi, a code of conduct
asset accumulation.
focus on customer
rights, they become claims conscious and
aims at the professional independent
16
pillar 2
Life and Asset Management as
The customers’ wishes
are the basis of our actions.
for the supply of information by financial
services providers and intermediaries.
Standards for fairness e.g.
key activity. Delta Lloyd and ohra
integrity
together are currently one of the largest
for privacy. They apply not only to
Another development is a greater inte-
asset managers in the Netherlands. The
employees, but also to trading partners
rest in savings through pensions, like
life activities are traditionally the group’s
and customers, and to our products.
Universal Life products. It is this growing
operating area. The other activities
entrepreneurial
support Asset Management and Life as
most dynamic market. This requires an
focus its activities in the next few years.
active approach.
One of the new products introduced in
much as possible.
pillar 3
The development and retention
Our group operates in a
involvement and responsibility
Expertise
pension market where Delta Lloyd will
2001 was the Financieel Vrijheidsplan.
of profitable activities in the area of
and enthusiasm amongst staff to be
New tax laws in the area of life annuities
General Insurance and Care Insurance
stimulated by training and development
and capital demanded quite an admini-
in the Netherlands. This is essential as it
team spirit
provides a larger customer base which
ments, financial services are provided by
creates opportunities to sell additional
people. Only through joint responsibility
Despite ongoing ict develop-
products in the field of Asset Manage-
can good teamwork become a fact.
ment and Life.
o p e n c o m m u n i c at i o n
pillar 4
Achieving top-three positions in
As close co-operation
is essential, mutual communication must
defined markets. Delta Lloyd wants to
be open and direct. Honest and plain
compete only in markets in which it is a
communication also creates a pleasant
winner or can be one. Traditional areas
working atmosphere.
at which the group is good include water
flexibility
sports, agricultural sector, homeowners
operations is subject to our ability to
and government employees.
foresee social changes.
pillar 5
The continuity of our
The best possible synergy
throughout the group. This is essential
These covering values apply to the
for achieving cost savings and an
entire group, although there may be
increased profitability. Expertise and
slight differences amongst business
knowledge must be interchangeable
units.
amongst all divisions in the group.
strative effort for which temporary staff
had to be engaged.
Saving by means of single premium
The group name was changed to Delta Lloyd nv
policies has diminished considerably as
on 1 January 2002.
a result of new tax legislation, after an
expected boom at the end of 2000. As
The Delta Lloyd commercial Parade won a Silver
most people appear to have a pension
Lion at the Cannes International Advertising
gap, the possibilities of tax deduction for
Festival. The commercial was launched in May
consumers are greater than generally
and succeeded successful commercials like
expected. Extra tax benefits may also be
Figure Skating and Bumper Car.
reaped via employers within the context
of Employee Benefits. Intermediaries and
pggm, the pension fund for health, mental and
the insurance specialists should inform
social care, and Delta Lloyd decided end
consumers of these opportunities. Delta
December 2001 to set up a joint venture. This
Lloyd has developed automated modules
organisation will offer pggm members financial
to be used by intermediaries.
services and products under the label Careon.
The 1.5 million members in the pggm pension
Recommendations made by the Traas
fund will be offered a wide range of financial
Committee have an impact for insurers
products and services: life assurance, general
in reporting results. The indirect return
insurance, care insurance, investment products
method as a primary reporting basis may
and banking products, including mortgages.
be prohibited; realised return on invest-
The joint venture will support employers in
ments must then annually be defined in
offering complete Employee Benefit products
the Profit & Loss account directly.
like flexible terms of employment with gap year
savings schemes, absence management and
E-business The use of the Internet and
rehabilitation products.
Intranet has been extended. Electronic
The joint venture will be selling such products
processing has many advantages such as
under a new brand name. This means for pggm
speed, control, expenses, fewer errors
extra service to its customers, for Delta Lloyd
and results in a better service to the
it is a further extension of its multi-channel
17
customers. The Internet is expected soon
approach.
to be the medium for communication
between insurers and intermediaries.
An important change in the top management
For communication with the end
of the company took place in 2001.
consumer the use of the Internet will be
Mr. J.E. Jansen, chairman of the Executive Board,
defined by the degree of acceptance of
retired on 1 April. His farewell was celebrated
the Internet and the number of personal
with a sensational party for employees and
computers at home.
invited guests in the Scheepvaartmuseum in
Amsterdam. Mr. N.W. Hoek succeeded Mr. Jansen
as chairman of the Board at the same date.
Developments in the financial markets
External shocks 2001 will always be
Falling share prices in the ict sector
remembered for the September 11 attacks
caused great capital losses, mainly by
in America.
private investors, which was not good
2001 was also the year in which the
for consumer confidence. The leading
crude oil price fell sharply. The crude oil
indicators spiralled downwards in the
price has often been the drive of major
United States from October 2000,
economic instability.
followed by Europe after a few months.
The growth of gdp in the United States
Economic activity worldwide World
became negative in the third quarter
economy was in recession in 2001. This
2001, wheras the second quarter hardly
was established for the United States by
deviated. This was similar in Europe.
the National Bureau of Economic
18
Research. The same has meanwhile
As employment rates fall later in an
occurred in Japan and it may also apply
economic slump, unemployment figures
to Europe. It is clear, at any rate, that the
in the us were initially not affected.
economic activity has slowed down
However, these figures fell sharply in the
everywhere. The usa had top economic
last few months in 2001 (5.7%). Although
growth of 5.2% in the second quarter
European employment rates are just
2000 at the time of the ict boom. From
beginning to rise, the level of 8% is
that moment on, the effects of over-
already much higher. This is caused
investments disturbed first American
mainly by large economies like Germany,
growth, but soon followed by Southeast
France and Italy, where labour flexibility
Asia. Europe was affected via these two
is open to question. Unemployment in
areas, although it appeared initially that
Japan reached a height in November
a recession in Europe could be avoided.
(5.4%). Such unfavourable labour market
Economic growth in the world has been
conditions are not good for consumer
simultaneous for the first time since early
confidence. Consumer spending accounts
2000. This may have disrupting effects:
for more than 60% of gdp. The disposable
it implies inflation when the economy is
income is starting to rise due to the
booming and in a recession it results in
falling inflation and lower interest rates.
reducing world trade, dropping raw
In the United States this movement is also
material prices and falling inflation.
affected by the conversion of housing
mortgages to lower interest rates.
Inflation Due to falling raw material
f i na n c i a l o u t l o o k d e l ta l l o y d
prices and lower economic activity,
group for 2002
inflation is on its way down, although
The Executive Board expects that the
there are still such countries with
financial markets will consolidate and
relatively high inflation rates as the
may even further recover, but on a lower
Netherlands.
level than in the past few years. There
The crude oil price fell from, $ 24 a barrel
will be an increased demand for financial
in January to $ 20 in December. In the
products with guarantee characteristics.
us the inflation rate fell from 3.7% in
Our investment funds will receive
January 2001 to 1.9% in November.
relatively more attention from investors
In Europe a rate of 2.1% was achieved in
because of the sound spread of risks.
November, the European Central Bank
At the same time, premium income for
standard is within reach. There is
Life, General Insurance and Care is
sufficient guarantee for low levels of
expected to rise further. Existing tax
increasing prices. However, the actual
advantages which are not yet used will
introduction of the euro single currency
give Life premium income a new
on 1 January 2002 may have an upward
incentive.
effect on prices.
The Executive Board expects a clear
growth of revenue and result for the
Interest rates Falling economic condi-
group in 2002.
tions induced the fed to reduce the
short-term interest rates in the us early
in the year. The events on 11 September
were followed by a series of interest rate
reductions, resulting in a total of 11 with
an overall reduction of 475 basis points.
The European Central Bank contrary to
the fed, has a single objective in this
main target, even when it concerns
stimulating economic growth. Yet, the
European Central Bank also reduced the
interest rate by 150 basis points, despite
the fact that the rate of inflation was
still above the 2% standard.
This unprecedented fall in rates in the
usa seemed to have little effect on the
capital market rate of interest. The year
2001 started by a 10-year interest rate of
5.11% and concluded at 5.1%, despite the
inflation and the recession. The interest
rate in the Eurozone developed similarly.
The German 10-year rate of interest
opened at 4.87% and ended at 4.7%.
19
respect, a low inflation rate being the
Delta Lloyd Insurance
2001
2000
2,602.9
2,278.0
1,090.0
1,258.4
Revenue
3,692.9
3,536.4
249.2
244.2
Result
(before taxation)
DEL
LLOYD
INS
ANCE
Staff numbers
1,801.1
2,068.2
2,742
2,340
Objectives 2002
Delta Lloyd Insurance is the largest – Focus on customer
division in the group and consists
– Focus on return and growth
of Delta Lloyd Life, Delta Lloyd
– Continue and complete
General Insurance and Delta Lloyd
Care. Delta Lloyd Verzekeringen is
distribution policy
– Implement gidi protocol
the intermediary company working – Expand Lancyr
together intensely and exclusively
– Introduce new Care product
with professional independent
– Anticipate new medical basis
intermediaries.
system
– Anticipate government’s new
The total premium income
increased by 14 % to € 2,602.9
million in 2001.
wao policy
– Anticipate new commission
schemes
The results for Delta Lloyd
– Cost reduction
Insurance rose by 2 % to € 249.2
– Extension of e-business
million. Total revenue increased
– Joint back office with ohr a
by 4 % to € 3,692.9 million. Delta
Lloyd Care achieved substantial
TA
growth compared with the 2000
results. The pre-tax results for
Delta Lloyd Life fell by 7 % to
€ 242.0 million. The results for
amounted to € 18.1 million, which
is a considerable improvement
compared with the negative result
in 2000.
21
d e l ta l l o y d i n s u r a n c e
UR
‘Strong support to intermediaries for new
commission schemes’
For Delta Lloyd Insurance, 2001 was the
22
– To introduce a new distribution
– To achieve a more than average growth
year in which the strategy developed in
strategy. This strategy aims at the best
in the market for asset accumulation
2000 was implemented. The essential
possible relationship with inter-
and income protection. This will be
point is focus on customers and the best
mediaries, implying that the focus will
achieved primarily through the new
possible structure for the distribution.
be on agents who have an added value
Universal Life product Financieel
Delta Lloyd Insurance aims at the best
for customers and for Delta Lloyd,
Vrijheidsplan. This new product is the
customer satisfaction and at the
now and in the future. There is a wide
intended successor of Delta Life with
realisation of its financial objectives
variety in volume, expertise, revenue,
a comprehensive cover and a
by means of close relationships with
policy and commitment amongst
completely new administration
intermediaries. The brand awareness
intermediaries. Delta Lloyd anticipates
system. The Financieel Vrijheidsplan
increased sharply through the
the specific needs of these groups by
has a system of renewal commission
commercials ‘...must be Delta Lloyd’ on
matching with them the marketing,
for the intermediary.
television and billboards. This strategy
sales organisation and the account
appears to have been successful: the
management activities.
results in General Insurance and Care
– Structural cost control and improved
profitability. Increasing competition,
ongoing transparency, technological
surpassed all expectations. On the other
The franchise organisation Lancyr
changes and new legislation lead to
hand, this strategy caused some purpose-
was actively extended and supported.
smaller margins. This implies that
ful loss of (unprofitable) revenue.
This activity concerns the co-operation
expenses must be reduced. Some
in the field of marketing and admini-
projects were implemented to that
Strategy The strategy consists of five
stration for and by intermediaries,
effect in the year under review to
clearly determined basic starting points:
initiated by Delta Lloyd. New offices
achieve better cost reporting. A new
– To acquire a top position in the market
continued to join again in 2001.
system, Meeting Point, was set up
of financial relationships between
together with a few other insurers,
employers and employees coming
Delta Lloyd feels that there are oppor-
allowing intermediaries to quote and
under the scope of Employee Benefits.
tunities enough for expert inter-
introduce policy changes via the Inter-
Spearheads include offering products
mediaries. The world is becoming more
net. At the same time, back office
in the field of care for old age and
‘anonymous’ which may increase the
projects were set up, whereas a new
absence reduction. These are major
need for personal contacts. The govern-
distribution strategy will lead to cost
long-term growth markets. New
ment is moving away from several
pension products were introduced
sectors, and this makes personal advice
and a special pension campaign was
essential. Products become complex,
position in the general insurance
launched.
due partly to developments in the
commodity market. The simple risk
taxation and social areas. This increases
general insurance market is charac-
the feeling of uncertainty, especially
terised by saturation and over-capacity.
after 11 September. Advice is wanted in
Margins are under pressure as a result.
every field. Delta Lloyd has pursued
Improved profitability may come
the policy of gidi in 2001, a code of
from ongoing automation and from
conduct for the supply of information
providing more standard products, for
by financial services providers and
instance the ‘Verzekeringspakket’ and
intermediaries. We do business only
the ‘Ondernemerspakket’ for small and
with intermediaries who comply with
medium-sizes businesses. Delta Lloyd
this code of conduct.
will also focus on the improvement of
reductions.
– To acquire a structural, profitable
its strong position in such niche sectors
as pleasure craft insurance, agricultural
insurance, technical insurance and
marine business.
Market developments The market for
Consumers have more information avail-
The other point of attention is the
insurances showed a dynamic picture.
able (via the Internet) and they stand up
eventual scheme to settle the supervision
The new tax legislation had a negative
for their rights. This puts pressure upon
over the intermediaries. The Securities
effect on the tax advantages of some
the margins. Price is becoming a more
Transactions (Supervision) Authority
life assurance products. This had a
important sales reason. The consumer’s
ste, the Dutch Central Bank and the
strengthening effect on a shift from
pattern of spending changes and is
Pension and Insurance Chamber may
insurance products to banking products.
focused more than before on the need for
play an important part in this respect.
Extra attention is therefore given to
luxury, certainty and individualisation.
This may lead to higher quality require-
banking products. On the other hand,
Negative results on the stock exchange
ments for intermediaries. We shall follow
the new tax system offers opportunities
are likely to lead to a shift from pure
contacts with various organisations
for products to bridge the so-called
investment products to investment
closely.
pension gap.
products with guarantee elements.
Economic growth moderated in 2001.
The ban on return commission is
This may lead to a decrease in new
abolished, thus creating opportunities
premium income. On the other hand,
to strengthen the co-operation between
the population in the Netherlands
insurers and intermediaries.
continues growing. Scarcity on the
labour market is still high and this leads
Plans for 2002 The new distribution
to a situation in which employers pay
strategy will be maintained and
more attention to an attractive outline
completed in 2002, also in respect of
of terms of employment offered by them.
the adjustment to the gidi protocol.
Insurers must seize opportunities here.
Together with ohra a joint back office in
the field of individual general insurance
will be made operational. Lancyr will be
ments in the insurance world.
extended. A new care product will be
Insurance companies merge. Inter-
developed. We will anticipate the new
mediaries cluster and merge. Insurers
basis system for medical expenses
participate in intermediaries, to safe-
insurance. Major rate increases must be
guard their new business. They also
expected in Care business.
design distribution formulas to focus
more on the end consumer. However,
Two developments will be given special
Delta Lloyd attaches much value to the
attention. One is the abolition of the legal
professional and independent inter-
commission scheme for intermediaries
mediaries. Majority participations
on 1 April 2002. Existing agreements will
obtained in the merger were reversed
have to be adjusted, a good remuneration
into minority stakes.
scheme has to be designed and the port-
The government is moving away from
folio right must be set up. The new
various sectors. The social security system
arrangements are likely to lead to sales
is phased down. On the other hand, the
changing from commission-oriented to
government is more interfering with
advice-driven. Naturally, Delta Lloyd will
health care and pension legislation.
react to this and support and protect the
intermediaries as much as possible.
23
There were various remarkable develop-
Delta Lloyd Life
2001
2000
1,649.9
1,325.3
1,002.2
1,093.9
Revenue
2,652.1
2,419.2
242.0
260.9
1,444.2
1,854.4
985
841
Result
(before taxation)
Staff numbers
Detail gross premium
Individual
Group
Total gross premium
Objectives 2002
Pre-tax profits for Delta Lloyd
– Focus on customer
Life fell by 7 % to € 242.0 million.
– Focus on pension products
Gross premium income rose by
– Extend Pension Support
24 % to € 1,649.9 million, due
– Extra focus on expiring life
mainly to major contracts in
the commercial lines market
annuities
– Operational Excellence
(e.g. the Fokker pension contract – Anticipate government’s
is included in the 2001 figures).
wao policy
– Set up joint back offices
together with ohr a Life
2001
792.1
2000
679.4
857.8
645.9
1,649.9
1,325.3
‘Well prepared for growth of the
pension market’
The year 2001 was a very special year for
The new tax rules also provide that many
for the entire insurance industry that
Delta Lloyd Life. Premium income
contracts had to be rendered paid-up or
these developments should be anti-
increased by 24% compared with 2000,
were surrendered partially or in full.
cipated.
due partly to the Fokker pension fund
Also, the new legislation appeared to
being taken up in the portfolio. A mile-
contain many obscurities, so that the
Pensions The ongoing discussion about
stone in the history of the life operation
Finance Ministry had to answer many
the development of pensions, including
was achieved in November: the number
questions posed by the insurance
flexible provisions, remains an item of
of Life customers exceeded one million
industry. A lot of them were not clearly
continuous attention. The average pay
for the first time. Mortgage Backed
answered until later in the year, which
systems are becoming more popular and
Securities were issued for € 1.0 billion.
created administrative delays.
so are plans based on a defined contribu-
New life annuity single premium policies
tion system. There is a tendency towards
reduced, but the market for the reinvest-
The introduction of the euro single
compulsory participation in pension
ment of maturing policies was strong,
currency on 1 January 2002 caused extra
schemes, whereas a compulsory indexa-
contributing to the rise in the overall
work too. Group pension contracts in
tion of pension rights and a minimum
volume of Delta Lloyd Life. The conver-
particular had to be changed as the
guarantee for premiums paid are also
sion to the euro single currency was
amounts are only in guilders. This
subjects of discussion.
successfully completed. On the other
problem did not exist for individual
Past service pension rights shall be
hand, the introduction of the new tax
contracts, because they were also in
financed annually, and Section 2b of the
system caused extra work and uncertain-
currencies other than guilders. Mean-
Pensions and Savings Act has been
ties. The social developments in the field
while, all systems had been tested and
effective from 1 January 2002. Section 2b
of pensions and the general discussion
agreed, so that the euro project could
provides mainly the option for members
about the future of the Invalidity
successfully be completed in 2001.
to exchange survivors’ pension for a
higher retirement pension.
from the management as these plans
Invalidity Insurance Act (wao) Continu-
Another item is the discussion about the
may have quite an impact on the life
ous management attention was required
so-called Cohen provisions when it
operations. The pensions market share
in connection with the discussion about
concerns pension funds with an own
rose slightly.
the worker incapacity benefit (wao).
insurance company. Pension funds may
The aim is to limit the relentless inflow
apply a basic interest rate of 4% for new
Fokker pension fund The transfer of
of people into the wao and to design
assurances whereas this rate is at least
the Fokker (aircraft) pension fund to
schemes and laws to achieve this. The
3% for private insurance companies, and
Delta Lloyd took place in 2001. It concerns
plans of the Government’s Donner
this is not what you call operating on a
a provision of approximately € 0.3 billion
committee which were presented at the
level playing field. All these phenomena
for the guarantee of the pensions of
end of the year under review, may have
require much consideration from the
former Fokker employees. Delta Lloyd
quite an impact upon the insurance
management as well as many adminis-
attends to the investments and the
industry. If they are introduced, the so-
trative efforts. A cd-rom was distributed
management of the contracts, in co-
called wao Gap will disappear and this
in the year under review with a so-called
operation with Aegon.
implies that an entire market for
pension scan which allows private clients
insurances to cover such gaps would
to calculate the options for funding a
Tax reform The introduction of the new
also cease to exist.
provision for old age with tax advantages.
tax system on 1 January 2001 created
In addition, problems may arise in con-
There are more opportunities than
extra administration for which we had
nection with the liability of employers
people think.
to hire external staff. One of the issues
for employees who come within the
implies that many life contracts have to
scope of the wao even so. Another item
Mortgages Mortgage Backed Securities
indicate the customer’s National
is the attitude of medical attendants
for € 1.0 billion were issued in 2001. This
Insurance Number from such date,
when the Donner plans are accepted.
system implies that a package of mort-
because the investments linked to the
This may have consequences for the
gages is combined to finance interest and
assurances fall within the scope of
question as to who is paying the worker
repayment of a bond loan. This enhanced
capital gains levy.
incapacity benefits. It is very important
Delta Lloyd’s cash position, making more
25
Insurance Act (wao) required dedication
money available for issuing more mort-
The public at large is beginning to focus more
gages. The number of mortgages issued
on pensions, which creates major opportunities
in 2001 was higher than in 2000, despite
for insurers. People are realising that they have
the fact that taking out remortgages is
greater life expectancy than their ancestors
past its peak. The number of insurance
and that the period of (early) retirement can be
related mortgages reduced slightly.
easy-going as long as they provide for savings,
investments and capital accumulation, which
The market share for various types of
can be realised through insurance. More than
pension saving is rising; this business
ever people want to enjoy themselves after
will grow in the years to come. New life
retirement and Delta Lloyd’s successful
annuity single premium policies declined
Financieel Vrijheidsplan has been especially
due to fewer possibilities to deduct the
developed to that effect. Developments in this
premium for tax purposes from 1 January
area have put even more emphasis on this, in
2001.
particular when it concerns early retirement,
partner pension, schemes to exchange survivors’
On the other hand, the market share
pension for retirement pension etc.
for Delta Lloyd Life increased by
26
approximately 10% in the market for
Delta Lloyd proclaimed 2001 Year of the Pension.
maturing single premium policies. Delta
Special comprehensive courses were held for
Lloyd is in a position to offer attractive
intermediaries and account managers, to
life annuity rates.
deepen their knowledge in the area of pension
Plans for 2002 The year 2001 was a record
There was a special seminar about ‘Flexibility
year, due partly to the Fokker pension
versus Security’ and follow-up days were
fund. Therefore, it is unlikely that the
organised covering ‘Ins & Outs’ of pensions.
premium for 2002 will rise as much as in
A new pure endowment type assurance was
2001. We will put much focus on products
introduced for group contracts and a Pension
for pension saving. The pension scan
Scan was set up. This enables consultants to
introduced in 2001 will certainly contri-
show customers their accrued rights at an
bute to that. The Financieel Vrijheids-
individual level.
plan, a most flexible Universal Life type
Special campaigns were conducted as well in
of insurance, has already become very
the field of pension saving, in which employees
accepted. Employers who have effected
may convert bonuses, holiday allowance etc.
the pension provisions for their
into an extra pension accrual. As the pension
employees with Delta Lloyd were offered
campaign proved to be very successful it was
a new service: Pension Support. This
continued into 2002.
assurance. About 300 people participated.
system enables them to send data direct
to Delta Lloyd via the Internet. Mort-
The question of ‘what shall I do when my capital
gages in the coming year will probably
matures’ is becoming increasingly important.
be less lavish, and this will also affect the
A specific Expiry Advice Team has been set up
sale of mortgage-linked life assurances.
to consult intermediaries. A special expiry tool-
The situation in the wao field remains
kit was designed for intermediaries to easily
uncertain. A study into setting up joint
deal with this subject.
back offices for Delta Lloyd Life together
with ohra Life started in 2001.
Delta Lloyd Life welcomed its one-millionth
customer in October.
Delta Lloyd
General Insurance
2001
2000
– Gross premim income
590.9
589.0
69.7
57.6
660.6
646.6
18.1
- 19.4
207.9
255.4
Staff numbers
1,198
1,022
Revenue
Result
(before taxation)
Details gross premium
pa / sickness
Motor third party liability
90.5
40.0
222.7
216.0
55.3
55.6
Objectives 2002
Gross premium income for
– Enhance roc
remained virtually the same as
– More cost savings
in 2000. Compared with the
– Joint back office for individual
General Insurance with ohr a
– More focus on commercial
insurance
million. This positive develop-
– Promote absence reduction
ment is due mainly to drastic
– Launch new products
measures in the portfolios of
– Support intermediaries with
all classes of business, a stricter
underwriting policy and
ongoing cost savings.
knowledge and skills
103.6
38.6
Total gross premium
from - € 19.4 million to € 18.1
101.2
Marine
Other
result increased considerably,
77.7
81.7
General liability
negative result in 2000, the
2000
86.6
Motor other
Fire and other material damage
2001
4.8
5.6
590.9
589.0
‘Back to profits through strategy’
The results for Delta Lloyd General
The product mix was adjusted for
Insurance business in 2001 improved
commercial reasons, the emphasis now
significantly. The year 2000 produced a
being put on income insurances like phi,
loss, but the results for 2001 showed a
Sickness Benefit, wao Gap and Pemba.
substantial profit. This was due mainly
A satisfactory increase in premium
to a series of measures taken in all
income was realised in this sector.
classes of business, such as the under-
28
writing policy and other, cost-reducing
Bodily Injury The bodily injury claims
measures. In doing so we have always
department was reorganised with the
preferred Quality to Quantity. Rates
aim to have a better control of the claims
have been adjusted and conditions made
experience in this class of business.
stricter. This had a delaying effect on the
As soon as claims are reported they are
growth of premium income. There were
distinguished into long-term, medium-
no extremely large claims for Delta Lloyd
term and fast claims. The general aim is
General Insurance in 2001, compared
a rapid settlement of claims. In the year
with 2000. Delta Lloyd ranks in the top 5
under review, 50% of the claims was
of Dutch general insurance companies
settled within four months. This led not
with a prominent position in fire, marine,
only to more satisfied claimants, but also
technical, agricultural and water sports
to fewer administrative operations and
insurances.
a relative reduction of the claims
experience. For that matter, bodily injury
Reorganisation of portfolios We took a
claims more or less stabilised, but it is
critical approach to larger risks which
not yet clear whether this is a structural
are provided via the insurance bourse.
development.
Insurances were cancelled or rates
adjusted and conditions renewed. Rates
for motor insurances were raised and
distinguished; it was resolved that certain
classes (like taxis and coaches) could no
longer be covered in connection with a
structurally unfavourable claims
experience. The intermediaries were
well informed of this. As a result of the
measures, Motor insurance was profitable last year.
The results for underwriting agencies
realised an appreciable improvement.
Income insurances A pilot absence
The automation of the administration
The Internet appears to be not only a source
centre was set up. This concerns a group
was improved and refined. Within the
of information and a good e-business or
of experts who handle various types of
context of Eas It a diversity of systems
e-commerce application, but it has other
prevention, guidance and restriction of
was reduced to one single core system.
functions as well. Delta Lloyd is trying out an
absence. They support employees in
This also led to cost reductions.
option of assessing losses through the Internet,
their reintegration process and assist
for example Motor claims. The motor vehicle
with the management of waiting lists.
Plans for 2002 There are preparations for
involved in an accident is taken to a garage
All parties involved, the insured
a joint back office with ohra in Arnhem
where digital pictures of the car are taken.
employee, the employer and the insurer
which will provide the administration for
These photographs are sent to the company via
have a common interest in this respect.
private insurances of both organisations.
the Internet, and a specially designed expert
Not only can the claims experience be
This will be made operational in 2002.
system is able to assess the level of the loss.
reduced significantly, customer satisfac-
The emphasis in 2002 will also be on care-
This may be an important money and time
tion is well enhanced.
ful underwriting of risks, more focus on
saver.
commercial insurances and the exchange
The department dealing with sub-
of knowledge and expertise.
In the greenhouse cultivation area of the ‘Oost-
standard risks offered via the insurance
einde Polder’ in the province of South Holland,
bourses was combined with the
the agricultural cluster called Bergschenhoek
department for Provincial Commercial
was open for all interested parties on 1 Sep-
Insurances. This has led to an unambigu-
tember 2001. Delta Lloyd ranks third amongst
ous policy and more decisiveness as well
greenhouse cultivation insurers. All market
as a better employment of existing
gardening firms selected Delta Lloyd as preferred
expertise. Also, work at other depart-
insurer. Delta Lloyd presented two new policies
ments was organised in related clusters,
on the opening of the cluster.
so that questions from insureds could be
channelled directly to the right experts.
Delta Lloyd developed a custom-made open
sailing yacht policy for owners. All European
Strategy The emphasis in the policy is
inland waters are covered as a standard geo-
on commercial insurances, without
graphical area. The cover is extended to all
29
disregarding the personal lines market,
European coastal waters in official contests or
of course. Commercial insurances need
preparations thereto.
expert advice and this is the obvious
At the same time, cover for sailing clothes on
added value of intermediaries. The
board substitutes the contents cover, as an
expertise of intermediaries and Delta
open sailing yacht hardly contains any ‘house-
Lloyd is a strong item in the competitive
hold’ contents. Theft of contents is normally
battle. Intermediaries will continuously
covered only after breaking and entry. This
be given expert support.
restriction does not apply to theft of sailing
clothing.
Delta Lloyd Care
2001
2000
362.1
363.7
19.6
19.0
381.7
382.7
6.7
2.7
119.9
148.6
559
477
Revenue
Result
(before taxation)
Staff numbers
Objectives 2002
The positive development
started in the previous two
– Gradual increase of market
years, continued steadily in
share
the year under review. The pre-
– Improved results
tax result more than doubled
– Create a profile of top quality
reaching € 6.7 million. The policy
insurer
which focused on the quality of
– Introduce new products
the portfolio was successful.
– Sales campaigns
– Anticipate new basis system
– Achieve cost benefits by joint
health care procurement with
ohr a
– Organise medial treatment
abroad
‘Increase in market share’
After drastic reorganisations in the past
abroad. By pursuing this policy, Delta
the market and it gave Nuts the position
two years, 2001 was satisfactory for
Lloyd Care wants to be distinguished as a
of the most economical health funds in
Delta Lloyd Care. The national health
top quality care insurer with remarkable
the Netherlands. The campaign at the
organisation which operates under the
provisions to enhance customer satisfac-
same time anticipated the new basis
traditional name of nuts, realised a
tion. The balance between profit and
system. Maximum profits from this
profit of some millions of euros. A
market share will be optimised next year.
source are not pursued as the national
campaign was held in the autumn to
A special product was introduced at the
health scheme performs mainly a social
raise the number of insureds. The health
end of last year for insureds whose
function. However, it is important to
schemes of ohra and nuts have mean-
medical consumption will probably be
Delta Lloyd as a whole to have the widest
while been completely combined.
low for a certain period of time. This
possible client base, also in this sector. It
relates mainly to young people. Inter-
creates opportunities for selling such
Medical expenses activities were also
mediaries do not only receive market
insurance products as supplementary
profitable. A number of unprofitable
compliant commission rates, but a bonus
medical expenses.
group contracts was cancelled which
system has been developed to stimulate
resulted in reduced revenue figures, but
the sale of these products.
Another activity of Delta Lloyd Care is
the quality of the portfolio improved
For the first time in the history of
carrying out tasks in the field of awbz,
sharply. The implementation of the
financial services, a game was introduced
the Exceptional Medical Expenses Act.
Business Process Redesign (bpr) was
for the intermediaries: the Adrealinic
A separate office was set up in this
completed; it has affected the entire
Game. The knowledge of intermediaries
respect: De Haaglanden.
organisation. The first foundations of
who participate (voluntarily) is tested
the new office in The Hague were laid
and they can earn a reward, in addition
down in the month of May. Delta Lloyd
to payment for much new business.
Care is back in business again with a
solid basis for the years to come.
Plans for 2002 The market share of Delta
Lloyd Care was approximately 6.5% at the
end of the year under review. The aim is
a gradual increase of this share to
health business were satisfactory. The fall
approximately 8%. Sales campaigns
Medical Expenses The organisation for
in the number of policyholders stopped
started in this respect at the end of 2001.
the medical expenses insurance under
and changed into a slight increase.
Together with ohra a cautious policy is
the name of Delta Lloyd Care has mean-
The health scheme of ohra was added to
pursued in respect of automation, as the
while stabilised, thanks to the intro-
nuts, this concerned approximately
systems will have to fit the new basis
duction of many new functions and a
70,000 policyholders. This involved much
system in due time. We are continuously
radical change following the bpr.
extra work. The population of the health
consulting with ohra about this. For an
Profitability doubled in 2001. Some
scheme insureds of ohra and nuts differ
even better cost control we are paying
major unprofitable group contracts were
in respect of age, payment behaviour
attention to the joint purchase of care
cancelled, but the remaining contracts
and geographical spread over the
services, where power of scale counts.
were given active attention to a stabilised
Netherlands. Extra staff were hired for
New methods will be sought to shorten
price, and services were added within
this operation which created a success-
waiting lists for medical operations. This
the context of Employee Benefits. Delta
ful integration.
may be achieved by sending patients
Lloyd Care has taken a position at the
abroad, if capacity exists there. In this
top of the market by providing a great
In the autumn an active campaign was
respect, we offer customers to undergo
number of supplementary services. The
organised called Intens. Health scheme
operations in Alicante, Spain, the cover
general slogan was prevention is better
insureds are offered three packages
including a full compensation for the
than cure. It is important to all parties
consisting of the legally required basis
operation itself, the trip and the stay in
involved to be healthy, to become healthy
package plus supplementary insurances.
Spain, also for the life partner.
and to remain so. The programmes
The most simple and cheapest package is
The overall policy aims at cost control,
provided includes fitness programmes,
called Intens Bronze, followed by Intens
stable results and a gradually rising
onsite advisory services and waiting list
Silver and the most comprehensive
market share.
mediation. An active absence manage-
package is Intens Gold. Policyholders are
ment is pursued, such as finding the
given an id Card in the corresponding
right medical attendants and treatment
colour. The response was encouraging.
methods, but also medical treatment
These products are very competitive in
31
Health scheme Developments in national
Delta Lloyd Care in co-operation with the Red
Cross Hospital in The Hague, organised the first
knee and hip airlift to Spain. Twelve patients
travelled to Spain with their doctors for an
operation in a hospital in Alicante. This unique
orthopaedic airlift, funded by Delta Lloyd Care,
is necessary, as patients cannot be helped within
a reasonable time because of long waiting lists
in Dutch hospitals. A second group followed in
August.
The idea of the airlift comes from two orthopaedists who were approached by Spanish
hospitals in the Benidorm region early in 2000.
The initial request was to operate upon Dutch
winter visitors. After medical and legal research
it appeared that a hospital in Alicante was
excellently equipped for operations of Dutch
people who are on a waiting list in the Nether-
lands. The nature of the operation and the use
32
of prostheses are exactly the same as in Holland.
The cost was not higher than similar operations
in the Netherlands, even though the patients are
accompanied by their partners, as is common
practice in Spanish hospitals. Compensations
include the flight, the operation, a stay in the
hospital and convalescence in a hotel for the
patient and a partner. Patients who undergo a
hip operation stay not more than 21 days in
Spain, nine of which in hospital. Knee patients
stay 14 days in Spain, six of which in hospital.
Larger numbers of patients will be helped in
this way in 2002.
A special campaign was organised for school
leavers in the year under review.
The first foundations for a new head office in
The Hague were laid in May 2001.
Delta Lloyd Care received much publicity when
they announced that the waiting list problem
can be addressed by providing a guarantee that
patients will be helped fore certain treatments
within two weeks, in the Netherlands or abroad.
ohra Insurance
2001
2000
747.4
709.5
- 9.8
154.5
OHRA
IN
SUR
ANCE
Revenue
737.6
864.0
52.9
41.8
193.6
215.5
Staff numbers
1,038
1,086
Result
(before taxation)
Objectives 2002
ohr a Insurance is the direct
division in the group and consists
– Strengthen brand awareness and
of ohr a Life, ohr a General
Insurance, ohr a Care and ohr a
Income and Absence. nsf, Nationaal Spaarfonds, is included in
the figures for ohr a Life.
image
– Set up joint back offices with
Delta Lloyd
– Make joint venture Delta Lloyd
and pggm operational
– Operational excellence
ohr a achieved a pre-tax result of
– Growth of revenue and results
€ 52.9 million, which is a major
– Introduce new investment funds
increase of 27 % compared with
– Speech technology project
2000. The revenue in single
– Extend e-business
premium policies and the investment funds were disappointing.
The total gross premium income
rose by 5 % compared with 2000 to
€ 747.4 million.
‘Focus ohra on profitability and
revenue growth’
34
2001 was a satisfactory year for ohra.
ohra: renewed Plans for a business
New job descriptions were developed
Despite a series of radical measures for a
process redesign were developed in 2000
which gave all employees a clear picture
redesign of the business process – the
and ohra was on schedule in the year
of their role in the organisation. ‘Things
Go@ll programme – the overall result
under review. Core elements included
are going to be different’ is the general
increased slightly. The result for general
focus and profitability. The whole
message and often the organisation drew
insurances was clearly higher than in
organisation was remodelled and all
deeply on the energy and loyalty of staff.
2000, due mainly to a relatively favour-
aspects were focused on improvement of
In addition to the rearrangement of jobs
able claims year as well as a cautious
efficiency, cost control and cost reduction
and activities extra attention was paid
policy pursued for provisions.
and a higher quality of service. This
to training and skills. Naturally, the ict
Result and premium income for Life
implies a cultural change in which ohra
aspect was given extra attention.
lagged slightly behind last year. The
was transformed into an organisation
public were hesitant in respect of single
focused more than ever on results. Within
As the reorganisation also aims at a cost
premium policies and life annuity
this context, twelve so-called ohra shops
reduction, staff numbers will be reduced
products in particular, which was caused
were closed and the health schemes of
by 150 to 200 in the planning period until
by the introduction of the tax reform.
ohra and Nuts were integrated with effect
2004. This was defined in the year under
The uncertain mood of the stock markets
from 1 January 2001. At the same time,
review. This reduction will be realised
had a generally negative influence.
the foreign activities and intermediary
probably through natural turnover and
The development of the results of Care
business were transferred to Delta Lloyd.
replacement of staff within the total
improved, as in 1999 and 2000, with an
organisation. Great caution is exercised
acceptable outcome in 2001. Revenue fell
Image ohra had to have a new look in the
in this respect and regular consultation
slightly as a result of the cancellation of
market. Direct writer ohra will be given
is held with Trade Unions and the Works
some unprofitable group contracts. On
an image of a financial services provider
Council.
the other hand, a campaign in which
which sells a solid product, is competitive,
customers received a gift was very success-
has a well-known brand name and whose
E-business ohra wants to become the
ful.
products and actions are transparent. Key
leading e-insurer in the Netherlands.
ohra set up a completely new business
words include: strong, simple and clear.
The vision is that e-business, via the
unit in 2001, Income and Absence, with
A new advertising agency was employed
Internet, has a great future. This may
a focus on small and medium sized
to develop and strengthen this image in
relieve the call centres proportionally.
business with very specialised products
the market. Their first campaign produced
Common sense is required here, as
and services.
a sensation in the insurance market when
business in this area is not booming as
customers buying a product or service
anticipated. In practice, people are using
from ohra received a gift.
the Internet mainly to search for information. The actual transaction of
For that matter, this is not a cosmetic
business shows hesitant growth. This is
operation. The stronger position has to
based probably on the fear of security in
come from the inside. The organisational
internet transactions. Consumers are still
structure was made flatter, thus more
holding back when it comes to supplying
decisive. The number of management
credit card details. Still, most policies
layers was reduced from five to three:
are concluded by telephone. ohra adjusts
general managers, managers and team
to the consumers’ pace in respect of
leaders. The whole company was under
underwriting and the use of the Internet.
construction. ohra has been broken
Basic principles adopted include learning
down into product oriented and result
by doing and gradual extension. However,
oriented sectors: Life, General Insurance,
websites and new methods of web
Care, Income and Absence, Bank and In-
marketing are incessantly under review
vestments. Aims have been set and must
as to improvement, clarity and security.
be met. ohra is now a large direct writer
For instance, last year a pilot started in
with substantial growth ambitions and
the field of speech technology, for a fast
will benefit from an increase of capacity.
and efficient answer to customers.
Nationaal Spaarfonds Nationaal Spaar-
ohr a uses ‘Spraaknet’, an advanced speech
fonds was created from a merger of Natio-
recognition system. Customers may call the call
naal Spaarfonds and Noord-Braband
centre seven days a week, 24 hours a day to pass
Verzekeringen, and is a full subsidiary
sale and purchase orders on to ohr a, to switch
of ohra. Nationaal Spaarfonds puts
between investment funds and to retrieve their
emphasis on personal advice in the field
balance and actual share prices. Spraaknet
of mainly life products. The sales and
operates under the voice-response method.
marketing organisations are equipped to
Meanwhile, a speech technology project has
this effect. Nationaal Spaarfonds did very
started which is even more sophisticated. The
well in 2001, despite a slightly difficult
system is able to answer even non-programmed
savings market. Revenue and growth
questions. It is a pilot within the framework of
developed satisfactorily, and profit-
the ohr a vision: Learning by doing.
ability recovered significantly.
ohr a wants to show its social involvement.
Plans for 2002 The new organisation of
The company organised in 2001 that 1,000
ohra was virtually completed in 2001.
volunteers carried out work at the site of the
The emphasis in 2002 can therefore be
Bio Foundation for the handicapped for three
on growth and on results. New invest-
days. Overdue maintenance and other little jobs
ment funds will be introduced and a new
were carried out free of charge. ohr a made a
advertising campaign for a stronger
donation to the Bio Foundation in 2000 on the
image is in preparation. More attention
occasion of its 75th anniversary.
will be paid to launching new investment
products with a guarantee, as it appears
that customers demand such products in
uncertain economic times. All e-business
aspects will be considered with emphasis
on a speech technology project. Joint
back offices (shared service centres) will
with Delta Lloyd; ict systems of Delta
Lloyd and ohra will be linked.
35
ohr a i n s u r a n c e
be set up to save costs in co-operation
ohra Life
2001
2000
245.6
283.1
- 31.8
134.2
Revenue
213.8
417.3
31.1
32.4
170.9
188.9
405
442
Result
(before taxation)
Staff numbers
2001
2000
Individual
239.7
274.3
Group
Total gross premium
Objectives 2002
The pre-tax results for ohr a Life – Focus on customer
fell slightly by 4 % to € 31.1
– Enhance commercial strength
million. Premium income was
– Improvement logistics and
also slightly below 2000, € 245.6
million. This was partly due to
the consumers’ waiting attitude
automation
– Spearhead: pension saving and
expired life annuities
in relation to single premium
– Cost reduction
and life annuity products, as
the tax deductibility for such
products was not clear.
Delta Lloyd
5.9
8.8
245.6
283.1
‘Major opportunities in the market for
pensions and life annuities’
2001 was for ohra Life a period of a
Life annuity single premiums Single
drastic internal reorganisation due to
premium policies reduced sharply,
the programme Go@ll which started in
especially in the first six months of the
2000. Premium income was slightly
year, which was not unexpected as people
behind last year, as was the result.
took advantage of tax facilities at the
end of 2000, in connection with new tax
The structure of the reorganisation was
legislation on 1 January 2001. There was
adjusted to the new process vision and
uncertainty amongst customers about
internal moves were made. The total
the remaining possibilities of tax
reorganisation was concluded at the end
deductibility for this type of single
of October, providing a basis for an
premiums and life annuities. The market
important improvement in the quality
took an attitude of waiting. ohra Life
of service. Partly based on a customer
anticipated this development and opened
satisfaction inquiry in 2001, logistics and
a website where customers could find all
automation systems were improved to
information and where they could
the extent that the course between
calculate their maximum deduction
customer and handling was reduced.
possibilities. There was intense interest
‘I’ll put you through’ is now seldom
in this site.
heard, the customer is directed to the
right expert at once. This means an
Products focused on seniors (60+) did
acceleration of processes and shorter
very well. Single premium policies
delays.
effected in the past expire now, and offer
Despite the gradual advance of e-business,
life annuities or investments is a growing
it appears that most business is trans-
market. A successful campaign was
acted via the telephone. Apparently,
organised in the autumn.
personal contact remains indispensable.
Plans for 2002 The emphasis in 2002
Legal merger An adjustment of the legal
will be on a further improvement of the
structure was made in 2001. ohra Life
logistics and automation, allowing faster
and ohra Pensions merged within the
and more efficient operations, as well as
context of the aim of cost control and a
cost reductions and improved quality of
transparent organisation. In fact, ohra
service. Another main item for 2002 will
Pensions was incorporated in ohra Life.
be an improvement of commercial
This had no consequences for the
strength. Within the context of project
customers. Also, ohra’s relatively small
Go@ll, some small changes will be intro-
active group pension portfolio was trans-
duced into the organisation. The spear-
ferred to Delta Lloyd Life.
head of the policy will be a greater
emphasis on products for pension saving.
This appears to be a sharply growing
market.
37
opportunities for using this money for
ohra General Insurance
2001
2000
88.3
103.7
6.6
5.8
Revenue
94.9
109.5
Result
11.8
8.9
41.4
38.1
215
253
(before taxation)
Staff numbers
ohr a General Insurance had a
pa / Sickness
good year. Although premium
income fell by 15 % to € 88.3
million, the result rose by 33 %
Marine
to € 11.8 million. The higher
Fire and other material damage
result was due mainly to the
General liability
successful business of motor
Other
10.3
9.6
and housing insurance.
Total gross premium
88.3
103.7
Objectives 2002
– Improve logistics and automation
– Increase revenue through new
products
Delta Lloyd
– Enhance quality of service
2001
2000
4.1
24.8
Motor third party liability
28.5
26.8
Motor other
19.0
18.9
0.2
0.2
21.4
19.0
4.8
4.4
‘Call ohra today, have your policy tomorrow’
2001 was a good year for ohra General
Legal Expenses insurance Claims in legal
Insurance. The result was better than in
expenses insurances increase. Customers
2000, especially for Motor and housing
have become alert and life has become
insurances (the latter including buildings,
more complex, resulting in more
household contents and personal
conflicts. It was resolved to place the
liability).
legal expenses portfolio with das
Rechtsbijstand as per the end of the year.
The loss ratio developed favourably
This organisation is specialised in this
despite increasing loss figures for bodily
business. The ohra portfolio appeared
injury. This is due to a stricter under-
to be too small for an accountable
writing policy.
Execution of the increasing amount of
cases.
Much attention was also paid to internal
logistics. Call today, have your policy
Plans for 2002 Apart from the improve-
tomorrow, is the motto. Handling of
ment of logistics and automation and
claims reports was also made faster.
the introduction of new products for
more revenue, an important activity is
Motor insurance Revenue for motor
the joint back office for ohra gi and
insurances was at a good level in the first
Delta Lloyd personal lines business.
six months of the year. A new type of
The activities will be based in the office
motor insurance was launched in the
in Arnhem. Major cost reductions may
summer. The customer chooses, via the
be achieved. The two brand names of
Internet, which elements he/she wants
ohra and Delta Lloyd will be maintained
to cover. The risk is assessed also on the
in the market approach.
does not consider a big cities tariff.
Major discounts are given for Accidental
Damage cover, dependent on the year of
make. The product proved very successful and attracted many new customers in
the second half of the year.
Housing insurances The website dealing
with insurances about the house
(buildings, household contents, personal
liability), was renewed and was very
successful: the number of policies concluded in this way doubled in comparison
with last year.
39
basis of the postcode, but the product
ohra Care and Income
2001
2000
413.5
322.7
19.8
16.0
433.3
338.7
12.1
9.1
83.7
98.0
418
390
Revenue
Result
(before taxation)
Staff numbers
The market in which ohr a Care
Objectives ohr a Care 2002
Objectives ohr a Income and
Absence 2002
and Income operated in 2001 was – Growth in revenue
difficult, yet the results were
– Introduce e-insurance
– Intense marketing towards
satisfactory. Premium income
– Realise economies of scale
rose by 28 % to € 413.5 million.
through joint care procurement
The pre-tax result increased by
with Delta Lloyd Care
€ 12.1 million.
– Promote standard treatment
– Reduce claims experience
– Anticipate new basis system
small and medium sized
businesses
– Rapid revenue growth
‘Increase in market share through active
marketing campaigns’
ohr a c a r e 2001 was a satisfactory year
The volume of the group portfolio
Plans for 2002 Several developments are
for ohra Care. Improved profitability in
remained the same. ohra has provided
planned for 2002. Increase in revenue is
1998, 1999 and 2000 continued strongly
that it will not purchase unprofitable
important and will be achieved by a
in the year under review. The desired
portfolios only to increase revenue,
combination of rate increases and new
profitability level was achieved in a
something which is common practice
insurances. Competitive rates are
difficult market, characterised by very
amongst other parties in the Netherlands.
required for an inflow of new policies.
intense government involvement and
In group business, the focus was on small
Another item is an ongoing stress at cost
such problems as striking nurses, long
and medium sized businesses, also when
reduction, partly by more intense efforts
waiting lists, small hospital budgets and
it concerns relatively small contracts. This
to reduce the total claims experience.
rising medical expenses. Revenue reduced
makes it possible to sell other insurance
Care procurement will be combined with
slightly because of the cancellation of
products such as income, absence and
Nuts, which leads to economies of scale.
some unprofitable contracts in the
pension to existing customers.
Other initiatives will be developed to
medical expenses portfolio. This will
assist insureds in the Dutch labyrinth of
help to improve the profitability of the
medical provisions.
portfolio.
E-insurance will be developed in 2002.
ohra as a medical expenses insurer
Information, or a quotation may be
The health funds of ohra and Nuts have
applied for via the Internet, and it will
meanwhile been completely integrated.
be possible to effect the policy direct.
nuts is the health fund of ohra and
Electronic claims handling, which has
Delta Lloyd together. ohra has a position
already been the practice for pharmacists,
of a domestic direct writer with a large
will be promoted strongly in 2002.
The internal organisation has been
All these initiatives fit in ohra’s vision
adjusted in accordance with the
that power of scale, standardisation and
programme Go@ll, which started in
electronification may result in significant
2000. ohra has been subdivided into
and necessary cost reductions. But ohra
business units with their own marketing
would rather see that sickness is avoided,
departments. The automation was
by means of new services and guidance
renewed, resulting in faster, better and
(prevention services) or that sick persons
friendlier service.
get better fast and are reintegrated.
Focus for ohra Care was mainly on an
increase of revenue in order to achieve
power of scale and, hence, cost
reductions. An advertising campaign
was launched for the personal lines
market, with a gift for every new policy.
This remarkable campaign did not only
receive much attention in the insurance
world and in the press, but it was very
successful with the public as well. Many
thousands of new customers applied.
One striking element was that more
insureds opt for a higher deductible
than in previous years.
41
share in the market of medical expenses.
ohr a i n c o m e a n d a b s e n c e
However, there is more to Zorganize.
A completely new activity was set up in
Waiting list mediation may speed up the
2001: the business unit for Income and
recovery of absent employees. Mediation
Absence. Employee absence is expensive,
in a labour dispute is also part of a
not only for employers but also for
complete package of activities.
insurers and, eventually, often for the
employee involved. All parties benefit
Plans for 2002 Income and Absence is a
from absence reduction.
new business unit. An active introduction
The Income and Absence unit has
of Zorganize will be made in 2002.
developed a total package (Zorganize)
covering an active absence management
with appropriate insurances hedging
both employer and employee risks.
The package was developed on the basis
of a comprehensive exploration of the
market, with emphasis on small and
medium sized businesses. Customers’
ease is the first matter of importance and
all issues can be handled from one single
42
outlet. This leads to fast procedures.
At the same time, this package complies
with legal requirements in respect of an
active absence and reintegration management.
Reintegration ohra is able to organise
rapid reintegration. This is done via their
own Arbodienst (Occupational Health &
Safety Services) or together with any
other Arbodienst hired by the employer.
When absence is reported it is soon
established whether the absence may be
protracted. It has appeared that a rapid
reaction to a sick report avoids a long
absence. Reintegration plans are then
drawn up and carried out.
Asset Management Division 2001
2000
ASSET
MAN
AGE
MENT
DIVI
SION
Return on investments
1,272.8
1,678.8
Assets under management 42,463.5 36,618.0
– The Netherlands
36,426.7 31,269.6
– Abroad
6,036.8
5,348.4
61
57
Staff numbers
Objectives 2002
Investment Portfolio mix
2001 in %
2000 in %
Land and buildings
6.4
6.3
consists of Delta Lloyd Asset
– Launch guarantee products
Participations
0.2
0.2
Management and ohr a Asset
– Co-operation with bank
Shares and other variable interest instruments
15.7
19.2
Securities and other fixed interest instruments
26.6
22.4
Management. As a result of the
Nagelmackers
negative development on the
– Introduce new investment funds
Investment pools
international capital markets,
– More emphasis on institutional
Mortgages and loans
manly in the second half of the
financial year, the results of the
asset management division
asset management
– Bring share selection via
screening tools to perfection
0.5
0.6
23.0
23.8
Deposits with credit institutions
1.1
1.6
Other financial investments
1.1
1.1
Deposits with insurers
0.3
0.3
declined. The return on invest-
Investments for the account and risk of
ments decreased by 24 % to
policyholders
€ 1,272.8 million in 2001.
Total
New money in the investment
funds decreased by 41 % to
€ 1,342.0 million. The Asset
Management Division holds
assets under management of
€ 42.5 billion.
25.1
24.5
100.0
100.0
43
ohr a v e r z e k e r i n g e n
The asset management division
‘Investment products with a guarantee
in great demand’
44
For the asset management division of
Financial markets The volatility of the
In extremely turbulent periods, quanti-
Delta Lloyd, 2001 was a year with mixed
stock markets made investors aware that
tative or modelled investment is no
feelings. After years of prosperous
share prices do not only rise, they may
solution. People react rapidly in extreme
developments on the stock exchanges,
fall as well. A good spread of the invest-
situations and markets are then moving
particularly in 1998 and 1999, the market
ments to reduce the total risk, has
into unpredictable directions. It makes
deteriorated obviously, with falling share
correctly been given renewed attention.
sense then not to be swayed by the issue
prices. This trend was reinforced by the
It also led to investors being inclined to
of the day, but to stick to an outlined
September 11 events. The asset manage-
choose investment products with some
policy.
ment division was affected as well, so
guarantee. As to the 22 Delta Lloyd and
that share funds in particular booked
ohra investment funds we would point
negative results. On the other hand,
out that it is the fund managers’ task to
bonds could make a profit as a result of an
stay in investments. The percentages of
ongoing fall in interest rates. On balance,
cash to be kept are subject to a maximum.
the inflow of new money into the Delta
This is in line with our mission to achieve
Lloyd and ohra funds was satisfactory in
the best possible return on investment
every respect, this applies to both private
in due time, based on a founded vision,
and institutional investors. This was due
clear objectives and a clever strategy.
mainly to the fact that premiums for
many types of life assurance are paid
Choosing the right moment to get in
annually.
or out of financial markets has again
appeared to be complex and unpredictable. Worldwide stock exchanges showed
sharp declines after 11 September,
followed shortly afterwards by a remarkably sharp recovery. There was a unique
situation: for some funds, no net asset
value could be calculated because the
American stock exchanges had been
closed for several days. As a result, these
funds had to be withdrawn from the trade
for some time.
Development Delta Lloyd Funds
Source: Datastream | Including re-investment | Index: 31|12 |91 = 100
Delta Lloyd Investment Fund
92
93
94
95
msci-world index
400
300
200
100
0
Delta Lloyd Rente Fonds
cbs reinvestment index bonds 5-8 years
250
200
150
100
0
Geographical spread Delta Lloyd Investment Fund
on 31|12 |01
Japan 9.3 %
Singapore and the rest of the Far East 1.2 %
Rest of Europe 6.5 %
Italy and Spain
United States and Canada
3.5 %
United Kingdom 11.9 %
54.8 %
The Netherlands 8.1 %
France 3.7 %
Germany 1.0 %
96
97
98
99
00
01
The styles of the ohra and the Delta
Restructuring Funds The Delta Lloyd
The focus was not only on the private
Lloyd funds differ. The ohra funds are
funds were subject to restructuring in
market, new initiatives were taken in
thematic (environment, ageing, ict),
the year under review, partly in respect
the field of investment types for pension
enterprises being selected which show
of management fees. The Netherlands
funds and other institutional investors.
the highest future growth. Movements
still rank amongst the cheapest countries
For this purpose, nine new closed, hence
in price are therefore larger. The Delta
in Europe in this respect. An increasing
unlisted, funds were set up by Delta Lloyd.
Lloyd funds are more stable, due to their
number of foreign funds are presented
They are the basis for a well-spread invest-
wider orientation on benchmarks plus
to the Dutch market, a phenomenon
ment policy at low costs, aiming at the
an active management, they are subject
which is believed to go up in volume and
pension market, which is an important
to fewer peaks, upwards and downwards.
importance. However, these foreign
field to Delta Lloyd.
funds charge higher fees, enabling them
Assets in these funds at the end of the
The share market in 2001 The year 2001
to pass onto such third parties as banks,
year amounted to € 1.2 billion.
will be remembered as not a good stock
insurers and intermediaries higher fees.
market year, after an equally bad year
This gave them a competitive advantage.
New funds Two new funds were launched
2000. This was the worst year since 1974
Therefore, the fees for the Delta Lloyd
in the autumn, with a focus on the private
for many countries. Two bad years in a
funds were raised slightly, in order to
market. The ohra Medical Technology
row does not often occur. The table below
compete better. There is a general trend
Fund aims at investments in favourable
gives the results of some major stock
in Europe in this respect.
companies in the health care sector. The
exchanges.
ageing of the population in the western
world leads to a trend of higher consumption of medical provisions. This creates
good prospects for shares in companies
operating in the sectors of medical
instruments, hospital equipment,
research and service.
46
The share market in 2001
Country
Index
United States
S&P (500)
31|12|00
31|12|01
1,320.3
1,148.1
Result in %
- 13.0
Nasdaq
2,470.5
1,950.4
- 21.1
Germany
dax
6,433.6
5,160.1
- 19.8
France
cac 40
5,926.4
4,624.6
- 22.0
United Kingdom
ftse 100
6,222.5
5,217.4
- 16.2
The Netherlands
aex
637.6
506.8
- 20.5
Japan
Nikkei
13,785.7
10,542.6
- 23.5
Development ohra Funds
Source: Datastream | Including re-investment
ohr a Aandelen Fonds
1997
1998
1999
msci-world index
Index: 31|12 |96 = 100
400
300
200
100
0
ohr a Care Fonds
400
msci World Health Care index
Index: 31|12 |98 = 100
300
200
100
0
Spread ohr a assets
on 31|12 |01
Other investments 4.6 %
Environmental technology
Communication technology 18.3 %
Ageing and Care 42.0 %
e-business / Media 21.4 %
13.7 %
2000
2001
Delta Lloyd introduced the Euro Credit
Plans for 2002 Intensified uncertainty on
Fund to the market. It is a fund which
the financial markets as well as a changed
invests in worldwide bonds quoted in
risk perception of investors had led to a
euros. It concerns bonds issued by
greater demand for investment products
companies, so-called credits. Partly as a
with a guarantee feature. In order to meet
result of the limited issue of government
this demand, a number of products will
bonds (because government finance has
be launched in this field.
been reorganised in many countries),
Bank Nagelmackers in Belgium, which
such credits become very common.
was added to Delta Lloyd in 2001, has a
These credits are also very attractive as
small division of asset management.
they usually have a higher coupon rate
Co-operation will be intensified in 2002,
than government bonds and, when
in order to achieve synergy benefits in
spread well, are less risky than shares.
personal lines and institutional business.
The investments are made in debt
instruments with at least a bbb rating.
The long-term aim is to achieve two
percent more than on government
bonds.
48
A new economic model was developed for
a better share selection, and necessary
adjustments to several it systems were
implemented. It is possible now, faster
and more flawlessly than before, to
select with this screening tool shares
worldwide on the basis of parameters
like price/earnings ratio, volatility and
development of dividend.
In order to give customer investors more
insight into Delta Lloyd’s investment
policy, the quarterly magazine Koerslijn
was restyled. Anyone having a policy
or an investment with Delta Lloyd or
ohra receives a free copy of this
magazine. A new quarterly magazine
was introduced, Institutional Insight,
focusing on giving institutional investors
a better insight onto the investment
vision and investment philosophy of the
Asset Management Division.
Delta Lloyd
Banking Division
2001
2000
DELTA
LLOYD
BANK
ING
DIVI
SION
– Interest
147.7
159.3
– Commission
30.8
118.3
– Other income
26.3
9.6
204.8
287.2
3.9
18.6
345.4
216.7
Staff numbers
1,311
782
Revenue
Result
(before taxation)
Due partly to the decline of the
Objectives 2002
The Delta Lloyd Banking division
share prices and a consequently
includes Delta Lloyd Bank and
disappointing commission income,
– Aim at accelerated growth
ohr a Bank in the Netherlands,
the result of the banking division
– Integration Belgian activities
Delta Lloyd Securities (Amsterdam /
fell to € 3.9 million. On the other
– Extend ohr a Bank activities
Antwerp) and Delta Lloyd Bank in
hand, new mortgage loans in-
– Excel in niches
Belgium, which includes Bank van
creased sharply: € 1,286.3 million,
– Introduce one single ict system
Limburg and Bankunie. At the end
an increase of 24 % compared with
of the year under review the
2000. The managed mortgage
– More focus on interest products
important acquisition of Bank
portfolio has meanwhile risen to
– Operational Excellence
Nagelmackers in Belgium was
€ 4.9 billion.
completed. The results of this
acquisition will be included
completely in the 2002 figures.
for the banks
‘Breakthrough in the Belgian market’
50
2001 was a year of changes for the Delta
Expansion in Belgium Major develop-
Lloyd banking division, and not an easy
ments took place in Belgium. Bank van
year at the same time. The deteriorating
Limburg and Bankunie, two regional
situation on the financial markets was
banks in Northern Belgium, merged into
felt and the integration process of the
one single organisation: Delta Lloyd Bank.
various banking activities demanded
After negotiations of several months,
time and commitment from management
Bank Nagelmackers was acquired, a
and employees. Despite these conditions,
medium-sized bank employing about
the results for the year were positive,
600 staff. This take-over meant for Delta
although the target was not reached.
Lloyd België a considerable reinforce-
This urged the bank to draw up a cost
ment of the activities in the area of
reduction programme. A new manage-
retail banking, private banking and
ment structure was introduced and
institutional asset management. Bank
executive assistant positions have been
Nagelmackers and Delta Lloyd Bank
streamlined. In Belgium, Bank Nagel-
complement each other well in respect
mackers 1747 was acquired and added to
of strategy, market approach and spread
the banking division. The strategy was
over sales outlets. For private banking,
accentuated and the banking division
Bank Nagelmackers will be called Banque
has clearly set out its policy for the years
Privée Nagelmackers 1747; the retail
to come.
network of the bank is placed with Delta
Lloyd Bank.
The banking division could not withdraw
As a result of this take-over, the customer
from economic developments. Falling
portfolio of Delta Lloyd in Belgium
stock prices resulted in reduced commis-
increased from 40,000 to 180,000. By the
sion income. Mortgage issues increased
end of 2001, Delta Lloyd had a distribution
sharply, like last year. The public adopted
network of more than 100 offices and
a waiting attitude. Margins were under
160 agents. The take-over was accepted
pressure due to keener competition in
positively amongst intermediaries. Many
the market and a greater price conscious-
agents, intermediaries operating for
ness amongst customers. This is caused
their own risk and account, registered
partly by more transparency and more
spontaneously to become an exclusive
reference options via the Internet.
agent for Delta Lloyd Bank. The banking
division consists of five companies:
Delta Lloyd Bank Nederland, ohra Bank,
Delta Lloyd Bank België, Bank Nagelmackers 1747 and Delta Lloyd Securities.
Strategy The strategy was adjusted,
Film fund Delta Lloyd Bank decided at
In consultation with Formaat, a notary public
Private banking is now possible with
the end of 2000 to stop the activities in
organisation, a package of free services has
Delta Lloyd Bank in the Netherlands and
connection with the Delta Lloyd Film
been developed for mortgage applicants.
Belgium. The emphasis is on asset
Fund, which was in the interest of its
Prospective homeowners are given information
management and asset accumulation.
customers. Adequate arrangements were
(including a video) about what the notary
ohra Bank is for the direct channel,
made with participants and the inter-
public can do for them. The package includes
including the issue of mortgages and
mediaries so that none of them would be
a subscription to a magazine and extra death
consumer credit via the telephone and
victim of the uncertain developments.
cover. A free Entrepreneurial Scan is given to
the Internet. Delta Lloyd Intermediaries
The settlement of the issue demanded
entrepreneurs.
in the Netherlands are serviced by the
much attention from management, not
Mortgage and Retail operations of Delta
in the least in connection with legal
Lloyd Bank. Delta Lloyd Securities in
proceedings conducted against the film
Belgium, another subsidiary of Delta
producer in question.
Lloyd, deals with securities business.
Target groups of Delta Lloyd in Belgium
Transaction with the Public Prosecutor
and Bank Nagelmackers 1747 concern
The Public Prosecutor in Amsterdam
mainly private clients, with an emphasis
made a transaction with Delta Lloyd
on asset management and asset accumu-
Bank for € 1.1 million in connection with
lation.
administrative irregularities, which had
Wholesale banking, trust activities,
been reported by the Bank.
corporate finance and counselling of
ipo’s no longer belong to the group
Plans for 2002 As the banking organisa-
activities. This adjustment of the profile
tion is still relatively small, we shall aim
has contributed to a more moderate risk
at growth, partly by an expansion of the
profile of the banking division.
distribution network, so that economies
of scale can be achieved. The integration
Personnel organisation The personnel
of the Belgian activities will be strongly
organisation was also scrutinised. Jobs
developed.
clearly. This operation has meanwhile
The internet activities in ohra Bank will
been concluded and each employee
be extended. The intermediaries in the
knows now what his/her task is in the
Netherlands in co-operation with the
expanding organisation and what the
intermediary division will be encouraged
strategy is of the banking division.
even more to sell products in the field of
Training, development and career
saving and investment. At the same
programmes are under construction.
time, ongoing growth is expected for the
mortgage market. One single ict system
is to be introduced for the whole banking
division, which will be completed in 2002.
A Shared Service Centre must be ready
by the end of 2002. More than before will
the policy be aimed at interest products
like saving and credit loan, which brings
a better balance in the results and which
avoids major fluctuations. The risk profile
of the banking division is improved as a
result of these plans.
51
banking division
were reassessed and described more
Delta Lloyd Property
2001
2000
Income
126.7
117.5
Assets managed
1,720.4
1,634.2
– The Netherlands
1,364.6
1,292.6
355.8
341.6
– Abroad
Staff numbers
DELTA
LLOYD
PROP
ERTY
37
36
Property
The property portfolio increased
Purchases / Investments
86.3
last year by 5 % and vacancy fell to
Sales
42.1
54.7
1.3 %: Delta Lloyd Property had a
Movements in values
42.0
60.0
satisfactory year. Property
Market value
1,720.4
1,634.2
2001
2000
115.2
business covers 9 % of the total
asset mix for the own account and
Net return
6.3 %
6.4 %
risk of Delta Lloyd nv’s invested
Vacancy
1.3 %
2.2 %
51.5 %
capital. A net return of 6.3 % was
achieved on the property portfolio
Portfolio mix
Houses
49.6 %
Shopping centres
11.3 %
11.3 %
Objectives 2002
Offices
38.1 %
35.6 %
Other
– Keep investment level up
Total
in 2001.
– Outsource management functions
– Increase net rents by 12 %
– Stable equipment costs
– Improve profile in the market
– Reduce vacancy
1.0 %
1.6 %
100.0%
100.0 %
‘A controlling organisation’
2001 was a satisfactory year for Delta
Market trends Market conditions
The Mondriaan Tower, next to the existing head
Lloyd Property. All objectives for 2001 in
gradually lessened in 2001 due to
office of Delta Lloyd in Amsterdam, was
the field of investment, yield and cost
economic conditions in the market.
completed in 2001. It is the largest property in
control were achieved. A great number
This was very clear in the second half of
the portfolio with 31,000 m 2 floor area and is
of new projects was added to the port-
the year under review. The office market
122 meters tall. It has been fully let.
folio; the portfolio grew by 5% and
was beyond its peak and there was even
vacancy fell to 1.3%. In the goal to achieve
a fall in rents. Quality is therefore
The foundation stone was laid for the new
efficiency improvement and cost control,
increasingly important. The develop-
building of Delta Lloyd Care in The Hague.
new management contracts were
ment of values remained stable, also for
This building (almost 30,000 m 2 of office space)
concluded with nine property manage-
dwelling property. Scarcity of top quality
must be completed in 2003. It is an investment
ment organisations.
rented houses in the more expensive
of € 45 million.
renting segment went up again and
Investments The policy provides that
newly built houses of (rented) dwellings
In July, a very nice office building, Gemini in
Property shall be 10% of the total mix of
reached a record low in 2001. Procedures
Hoofddorp (11,500 m 2 ), was completed and fully
the assets invested for the risk and
in connection with town and country
let.
account of Delta Lloyd. A continuous
planning demand more time and
investment programmes is required if
(re)development projects cost more, a
A project of about fifty rented up-market
we want to achieve this.
phenomenon which slows down the
English-style houses was realised in the town
development of property in the Nether-
of Houten. All houses were let.
Strategy Delta Lloyd Property aims at
lands. As the price of land rose again, it
the best possible direct return on capital
is increasingly difficult to realise rented
An interest of 10 % was taken in Q-Park, market
with a steady growth of capital by means
houses and get an acceptable return.
leader in the field of parking (underground car
of the continuous improvement of the
Parking space was again in great demand.
parks and parking in the street.
quality and composition of the portfolio.
53
Plans for 2002 Given the deteriorating
lands and standards are adopted for
economic conditions we expect that
regions and market segments. A gradual
vacancy will rise. Nevertheless, new
remodelling is taking place from an
investments will be at the same level as
‘action’ organisation to a ‘controlling’
in 2001. The aim is an increase of the
organisation, with partnerships in the
portfolio of 9%, apart from the value
execution of projects are playing
growth of the existing portfolio. Targets
important roles. The general trend is
for 2002 include a net direct return on
outsourcing of administrative and tech-
capital of 6% (in connection with
nical activities. Delta Lloyd Property
addition of some new rented projects),
wants to have an image of an honest,
an improvement of net rents by 12% and
reliable and independent partner with a
stable equipment costs of 5.5%, related
broad social responsibility. If we want to
to gross rents. We aim at a breakdown
take part in acquiring property projects
of the total portfolio of 40-50% houses,
Delta Lloyd will have to take a recognis-
15-20% shops, 40-50% offices and 0-5%
able position in the market. A new house
miscellaneous.
style was developed in this respect and a
new corporate brochure was developed
for external relations.
d e l ta l l o y d p r o p e r t y
Investments are made only in the Nether-
Delta Lloyd Deutschland
2001
2000
619.0
579.6
24.0
195.3
DELTA
LLOYD
GER
MANY
– Interest
– Commission
– Other income
Revenue
Result
(before taxation)
Staff numbers
Objectives 2002
The major divisions of Delta Lloyd
Deutschland are the insurance
– Launch Riester products
companies Berlinische Leben,
– Enhance brand awareness
Hamburger Leben, Gries & Heissel
– Transform Life insurer into
Bankers and Delta Lloyd Invest-
financial services provider
ment Management (former
– Integrate insurers Saarbrücken
Schroders Investment Manage-
– Aim at acquisitions and forms of
ment).
co-operation
– Carry on with Business Process
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.
Redesign
5.3
4.9
11.2
7.4
2.8
2.1
662.3
789.3
15.9
12.0
- 25.6
98.2
986
961
‘German pension market offers great
opportunities’
2001 was quite satisfactory for Delta
The mission may be summarised as:
Lloyd Deutschland. Results were slightly
following the end consumer’s life cycle
above expectation and the increased rate
with a range of adjusted products. This
of new Life business was in line with the
includes not only income insurances, but
market. On the other hand, premium
also banking products and investment
income for single premium policies was
funds.
slightly behind plan, but both the annual
The brand awareness of Delta Lloyd
premium policies and the single premium
Deutschland received a good incentive
policies increased when compared with
when an agreement was concluded with
2000. The management team was changed
bmw, which has a solid reputation in
and reduced from five to four persons.
Germany as a top quality organisation.
All activities took place also under the
This company has several investment
name of Delta Lloyd from 1 July. The
funds for bmw drivers and the admini-
conversion to the euro single currency
stration of these funds was contracted
had been successfully completed by mid
out to Delta Lloyd Investment Managers
2001. Strategy, vision and implementation
GmbH. The management of the funds
of the Delta Lloyd corporate values were
is charged to the international fund
laid down and put into practice. Four
manager Frank Russell. The new
Delta Lloyd investment funds were intro-
products of Delta Lloyd Deutschland
duced to the market. The distribution
received very good marks from consumer
channel was reorganised which meant
organisations.
closing down some smaller regional
55
Market developments Germany is one of
tied-agents portfolio was reorganised as
the spearheads in the Delta Lloyd group.
well.
In Germany too, the Government moves
away from social security issues which
Strategy Delta Lloyd Deutschland, with
creates major opportunities for watchful
its head office in Wiesbaden, consists of
insurers. The state pension will be phased
Berlinische Leben, Hamburger Leben,
down from 2002 so that people will have
Gries & Heissel Bankiers and Delta Lloyd
to arrange their own supplementary
Investment Management. The latter
provisions via privatised pension funds
organisation is the continuation of
or otherwise. Tax incentives have been
Schroder Investment Management, with
made which led to a reduction in the
whom Delta Lloyd had a joint venture.
expected rise in new business. The public
The stake of Schroder was taken over in
were waiting for clarity in this respect.
2001. This fits the strategy of Delta Lloyd
In view of this new tax legislation, so-
Deutschland: to become a financial
called Riester products were developed.
services provider rather than a life
Germany is one of the fastest growing
insurer alone. The company works with
markets in Europe in the field of invest-
intermediaries and tied agents, but
ment funds.
contacts via the Internet were also
extended.
d e l ta l l o y d d e u t s c h l a n d
offices, as occurred in 2000. The so-called
The Business Process Redesign which
Plans for 2002 The policy pursued to
Delta Lloyd Investment Managers GmbH, a 100 %
started in 2000 continued in the year
transform Delta Lloyd Deutschland from
subsidiary of Delta Lloyd Deutschland, intro-
under review. Distribution channels
a pure Life insurer into a total financial
duced four European investment funds in May.
were reorganised and there was much
services provider will be continued in
dl i-Euro Aktien invests in shares of major
focus on training and development of
2002. The brand awareness of Delta
European enterprises, dl i-Euro Portfolio is a
staff. The emphasis is more than before
Lloyd Deutschland will be enhanced.
mix fund investing in European shares and
on marketing and sales techniques,
Spearheads include increased market
bonds. dl i-Euro Renten invests in first class
greater brand awareness and enhance
share, customer satisfaction, and cost
European bonds and dl i-Euro Cash makes
customer satisfaction. Scarcity in the
reduction for a better result. Extra focus
short-term investments in short-term debt
labour market did not always make it
will be put on the above Riester products
instruments and deposits. Savings plans have
easy to recruit expert employees. Staff
with which German consumers may
been developed for all funds, but single pay-
numbers did not change.
realise attractive supplementary pension
ments may be made as well.
provisions. Investment funds will be
E-business An alliance was planned with
promoted in this respect. Setting up an
one of the largest German internet
own pension fund is one of the possibili-
portals in 2001. This organisation with-
ties, or alliances with new German
drew in connection with the develop-
pension funds.
ments in the new economy, so that we
56
decided to develop internet activities
The life insurers in Saarbrücken which
ourselves. It is now possible to effect life
belong to the group and which were
assurances via the Internet with both
acquired from our shareholder, cgnu,
Berlinische and Hamburger Leben.
will be fully integrated in Berlinische
Delta Lloyd has an Internet site where
Leben.
customers can see the price of their
An active policy will be pursued of
investment funds, but they can also see
strategic co-operation in accordance
in which shares these funds have
with Delta Lloyd’s strategy of stringing
invested. Internet Banking is more
beads.
common in Germany than in the Netherlands. A pilot started in 2001 in which
intermediaries can make Life quotations
via their mobile telephones.
Delta Lloyd België
2001
2000
183.0
85.3
20.9
14.8
Revenue
203.9
100.1
Result
- 23.2
1.9
- 13.7
23.1
(before taxation)
DELTA
LLOYD
BEL
GIUM
Staff numbers
Objectives 2002
cgu Life in Belgium and cu in
Luxembourg ware added to Delta
– Focus on revenue growth
Lloyd België in 2001. One of the
– Enhance brand awareness
results was that premium income
– Increase service level
for Delta Lloyd België doubled.
– More co-operation with banking
The negative result is due partly to
division
the accelerated extension of the
– Bring automation into perfection
life operations.
– Promote e-business
– Improve Management Information
System
– Training for staff
– Launch new products
278
155
‘Ready for growth’
The Life company in Belgium looks back
Growth in Life is spearhead Expansion is
Focus on market share The official launch
at a challenging but satisfactory year.
a spearhead in Delta Lloyd’s strategy.
of Delta Lloyd Life for intermediaries took
Challenging because some mergers were
The Life operations must therefore be a
place in October, in order that the brand
effected, satisfactory because premium
significant player on the Belgian market
awareness could be enhanced. A new
income increased beyond expectation.
within a few years. Expansion is necessary
product was introduced to the market in
The company moved into a new modern
in that regard. After a merger was realised
December, the Delta Lloyd Top Account,
building in Brussels. All life activities
between ohra Life, Antverpia Life, Het
received much attention. Another
have now been concentrated and Delta
Belgisch Verhaal and De Poperingse
marketing expression which received
Lloyd Life Belgium is now almost ready
Verzekering, new mergers were effected
much notice, even outside Belgium, was
with its position of a solid unit with a
in 2001. cgu Life and Norwich Union
an advertising campaign in the Belgian
strong brand and ready for growth.
were added to the organisation. cgu
newspapers focusing on the Belgian
General Insurance was sold to Winter-
tennis champion Kim Clijsters.
thur.
58
The mergers, the move and the related
The general interest for Life products in
restructuring in the organisation
Belgium, like in the Netherlands, grew
demanded an effort from staff. Newly
sharply. In Belgium too, the Government
integrated teams had to be created, with
is moving away from social security issues
new jobs. The first team was created in
and the population is ageing. As a result,
Marketing and Sales. The process will go
the interest for income and pension
on into 2002. ict systems had to be
products increased sharply and Delta
matched. In order to avoid that the focus
Lloyd Life has reacted with a package of
in this stage would be too much on
specific products. It appeared again that
internal developments, a two-day staff
the banks belonging to the Delta Lloyd
event was organised in October where
group are an important distribution
people could meet, where information
channel for new Life business. Delta Lloyd
was given of the strategy and mission of
Life in Belgium operates with inter-
Delta Lloyd Life and where a pleasant
mediaries, call centres and e-business as
working atmosphere would be created.
well. The approach in the market is thus
characterised by a mono-brand policy
under the name of Delta Lloyd Life with
a multi-channel distribution system.
The image pursued is an insurer
distinguishing from other, traditional
insurers by service. The most important
target is an increase in market share.
Delta Lloyd Life Belgium ranks in the
top 20, but must reach the top five within
a few years.
Plans for 2002 A great number of activi-
The brand awareness of Delta Lloyd in Belgium
ties are planned for 2002. The company’s
significantly increased as a result of an
brand awareness will be promoted in a
advertising campaign. When Belgian tennis
major campaign early in the year.
champion Kim Clijsters got to the finals of the
Co-operation with the banking organi-
French Open at Roland Garros, Delta Lloyd Life
sation of Delta Lloyd Belgium, like Bank
placed a full-page congratulations and incentive
Nagelmackers will be intensified for
advertisement in all Belgian newspapers.
faster growth in revenue. This may
include mortgage products linked to life
Delta Lloyd moved into the brand new head
assurances. Team building in the new
office in Brussels in 2001 (9,000 m 2 ).
head office in Brussels will be completed
and extra focus will be on training and
development of staff.
At the same time, plans will be made to
encourage e-business. However, before
we can do so, the automation system
must be reorganised through the
introduction of a back office-system.
This approach is characterised by bricks
and clicks. The former being traditional
distribution methods, the latter
meaning an approach via the Internet.
59
d e l ta l l o y d b e l g i u m
Ennia Caribe
2001
2000
81.9
90.7
15.9
18.3
– Interest
6.6
7.0
– Commission
0.1
0.3
104.5
116.3
15.9
7.8
Revenue
Result
(before taxation)
ENNIA
CARIBE
Staff numbers
Objectives 2002
Gross premium income for Ennia
Caribe fell by 10 % to € 81.9 million,
– Focus on ‘total client’
but the pre-tax result was doubled: – Integration De Amersfoortse
€ 15.9 million. The underwriting
Antillen nv
result for general insurance
– Establish chain integration
improved remarkably.
– Growth of the fire portfolio
37.4
32.3
151
149
‘Good results’
2001 was a good year for Ennia Caribe.
Life and Care Premium income for Life
General Insurance The underwriting
Despite the persistently unfavourable
business for the first time exceeded the
result of General Insurance business
economic conditions on the Netherlands
general insurance revenue in 2000. This
improved sharply, revenue is only
Antilles and Aruba, revenue developed
development continued in 2001. Life
generated through intermediaries only.
to a satisfactory level and the result
business is the first priority. General
This was caused mainly by a radical
increased as well. There was a remarkable
insurance has a complementary function.
reorganisation of the motor portfolio,
improvement of the underwriting result
Revenue is generated not only via inter-
where a large, unprofitable Motor Third
for general insurance and agreement
mediaries, but also via direct writing, via
Party Liability policy was cancelled.
was reached about the take-over of De
direct selling to the end consumer and
Fire results were favourable in 2001.
Amersfoortse Antillen nv. Life results
via the website of Ennia Caribe. The
The market position improved by a better
were also favourable. The foundation
Unit-linked Money Plan and the Pension
application of available knowledge and
stone of a new office at Aruba was laid.
Investment Plan was again successful.
skills. On the Windward Islands we are
Preparations for a direct market approach
selling life assurance only, because the
Economic developments The economic
through Employee Benefits have been
risk of storm damage is much larger here
condition of the Netherlands Antilles
completed virtually.
than on the Leeward Islands. The market
and Aruba have been in a slump for years
A significant increase of revenue in Care
approach strategy was accentuated, the
and this situation did not improve in
will be achieved by the take-over of
focus is on total clients, customers having
2001. As a result, a brain drain has taken
De Amersfoortse Antillen nv. This is a
more than one insurance policy with
place, an outflow of people with good
subsidiary of the Dutch combination of
Ennia Caribe.
training levels. Not only is it difficult to
De Amersfoortse-asr. The take-over was
effected on 1 January 2002. This will
Plans for 2002 The focus remains on Life,
sold to increasingly fewer people too.
create cost benefits due to an increase in
financial services and profitable general
This development impels us to pursue a
scale, and this is really necessary because
insurance products. A major increase in
very cost conscious policy and we will
the costs in this business on the Antilles
revenue will be realised by the inte-
have to look for an expansion of the
and Aruba are alarming.
gration of De Amersfoortse Antillen nv
operating area outside the traditional
A major pension contract was concluded
into the organisation. At the same time,
region. The administrative infrastructure
with a large banking institution in
more Life business must be generated
and the automation of Ennia Caribe are
Surinam.
by activities outside the traditional
in proper order and capable of processing
operating area.
more business.
A chain integration will be established in
which intermediaries have direct access
to the reorganisation via extended office
functions. This policy does not aim at
getting more customers, but rather at
selling more policies per client. Ennia
Caribe offers a total package of insurances
covering the customer from cradle to
grave.
61
ennia caribe
recruit qualified staff, but policies can be
Data processing
‘All employees on the electronic highway’
62
The plans made for the data processing
Internal electronic highway Automation
Business projects Delta Lloyd’s intranet,
division made in 2000 were implemented
of a modern organisation is not only
called IntraCom, was extended and
in 2001. A Group ict was set up in which
necessary, it creates a competitive
renewed. New administrative packages
300 staff work together for all divisions in
advantage. There are many synergy
were introduced for the various divisions,
Delta Lloyd and ohra; the infrastructure
advantages from merged automation
to replace old legacy systems. This
of all automation systems are linked and
departments. The target is to use jointly
concerns the back office support for the
fused together as much as possible.
systems, hardware procurement,
general insurance operations, a Universal
New standard software packages were
software and automation services.
Life package for Life and Globus for the
implemented. Information Managers
This requires first of all a review of
banking division. A new ledger package
were appointed in more business units
existing systems, the realisation of an
was implemented in ohra.
who see to it that the automation level
internal electronic highway, and then
remains up-to-date. The conversion of
standardisation and links between such
Much focus was put on e-business
systems to the euro was completed.
systems.
development, a phenomenon through
A study into new opportunities in the
which Delta Lloyd will be able to give
automation area started. The aim is to
even better service to customers and
create a new style workplace where,
intermediaries. One of the developments
eventually, all such electronic means as
implies a project in which intermediaries
servers, call centres, printers, desktops
have direct access to the back office
pc’s, faxes, fixed and mobile phones are
systems of the Delta Lloyd group.
smoothly linked to the electronic highway. Standardisation will make systems
reliable and accessible and will reduce
costs.
In addition to the realisation of one single
e-mail system and access to the Internet
for all employees, three computing
centres, in Amsterdam, Arnhem and
The Hague, were united into one central
computing centre for heavy processes.
At the same time, one central print shop
was set up. Policies, mailings and invoices
are now printed and dispatched from
one central place, whereas this used to
be done via the print shops in Amsterdam, The Hague and Arnhem.
Plans for 2002 The process of integration
When a great number of employees will be
and streamlining of systems for synergy
moving from the existing head-office to the
benefits will be continued in 2002.
newly built Mondriaan Tower in 2002, ict
Examples in this respect are the combi-
expertise will be required. About 800 work-
nation of four existing helpdesks into
places will have to be moved in one single
one single helpdesk for all Dutch offices,
weekend and that involves computers, cables,
an operational central print shop and a
switches and applications and system tests.
joint computing centre. A study will be
The preparations for this labour-intensive
made into the possibilities of linking the
project started long ago and the blueprint has
Belgian and German systems to the
been ready for some time. Everything should
Delta Lloyd system. Naturally, the
be working normally on the Monday morning
development of e-business and internet
after this weekend.
communication will have much
attention.
Modernisation, consolidation, streamlining and cost saving are core targets
for operational excellence in 2002.
63
data p r o c e s s i n g
Personnel and Organisation
‘Delta Lloyd group must be a preferred
employer’
Personnel and organisation in the Delta
Organisation, functions and training
Lloyd group was labour intensive in 2001.
As the Delta Lloyd organisational model
The preparation of the harmonisation of
is based on teamwork, the development
terms of employment in the group
and training of team leaders received
demanded much thought. Organisations
extra attention by means of a Manage-
were adjusted and new jobs were
ment Development training at group
assessed, described and in some cases
level. The first few groups composed
filled by other people. The total staff
from various divisions started end 2001.
number in the organisation increased
64
slightly. A new structure was introduced
There is in fact not yet a well-structured
for the Management Development and
training programme for managers.
Executive Development programmes.
Policy was developed to that effect and
A new plan was also made for develop-
a new project is to start early in 2002.
ment and training of team leaders. The
staff information system was modernised
Delta Lloyd must be and must remain an
and rendered euro proof. Extra emphasis
attractive employer for all employees,
was on career development and absence
even more so as the labour market is
policy. All these subjects involved many
likely to remain small for some years to
meetings with Works Councils and Trade
come. On the other hand, the tension on
Unions.
this market eased somewhat by the end
of the year under review. It is important
To harmonise terms of employment
that a personal development plan should
The policy pursued is to achieve one
exist for every employee, with a focus on
single Collective Bargaining Agreement
career. There is a great choice of training
for the Delta Lloyd group, and this is
and development. The insurance industry
believed to be realised with effect from
does not have a strong image amongst
2003.
school leavers, which makes it hard to
The new system must have no effect on
recruit good young personnel. An
total costs. The aim is to offer employees
advertisement campaign was organised
an agreement with various components
to improve and identify the Delta Lloyd
for staff to choose more flexibility.
image. Road shows were arranged in
which school leavers were given more
insight into the opportunities with
Delta Lloyd. The traineeship system for
students was extended.
Extra notice on female employees
Security awareness Be Aware was an
Delta Lloyd’s labour market campaign won a
The position of female staff received
essential project to enhance the security
prize in May. The sjp Foundation granted Delta
extra notice. Delta Lloyd’s opinion is
awareness amongst all employees. Delta
Lloyd two ‘Magnets’. The jury reported that the
that female and male employees should
Lloyd and ohra have taken physical
Delta Lloyd advertising campaigns were a classic
have the same opportunities, naturally,
security measures for the access to
example of fully developed labour market
also for the way up to higher management
buildings. But the ongoing automation
communication within an existing brand name
positions. This will result in the desired
of society involves new risks. Company
campaign.
diversity in management teams and
information can be found everywhere on
styles. About 40% of team leaders are
computers, desk tops and laptops, and
female, but there are just too few female
the latter machines are often taken out-
managers and general managers. So, the
side the office buildings. Also, employees
flow up to higher functions is given extra
have direct contacts with outsiders via
emphasis.
the Internet. At the same time, external
The Delta Lloyd Executive Development
staff are employed and people often work
Committee, together with the
temporarily in the office buildings.
‘Opportunity in Bedrijf’ organisation
Security of information is an important
developed new policy in this respect.
issue.
This organisation made a study at Delta
Lloyd last year, into any impeding factors
Plans for 2002 The project to harmonise
for female team leaders to grow into
terms of employment will be completed
management positions.
in 2002. Part of the Delta Lloyd staff is
‘Kans op Balans’ workshops were
moved to the Mondriaan Tower in the
organised for managers. Female
summer. A plan has been made to
managers from external organisations
reconsider the absence policy in
were invited to discuss their experience
combination with the policy towards
and vision in this respect.
Occupational Health & Safety Services,
an issue which had been given less
attention due to the integration process.
slightly; as a result new incentives were
given to the sickness absence policy and
best practices from the various divisions
were used. Ergonomics will be an
important item in the design of new
workplaces.
The reorganisation of some working
processes will again lead to changes in
the organisation and jobs.
65
p e r s o n n e l a n d o r ga n i sat i o n
Absence in the organisation increased
Corporate Governance & Risk Management
Corporate Governance Corporate
The final responsibility for the internal
Naturally, external supervisors,
Governance is about the appropriate
management systems of Delta Lloyd nv
consultation in the insurance industry,
management of an enterprise, adequate
is with the Executive Board. This concerns
stakeholders and our customers provide
supervision and transparent account to
particularly the strategy and the long-
a powerful, supplementary contribution
those involved in the enterprise.
term planning. The Executive Board
for the accountable and successful
shall consult the top management and
management of the group, for the super-
In this respect, the Supervisory Board
the Central Works Council in all major
vision thereof and the account given
has a major responsibility in the super-
decisions.
thereof.
vision of the management of Delta
66
Lloyd nv by the Executive Board and
Tactical and operational planning (three
Risk management Especially for financial
the management of the company.
years rolling) and realisation of the
institutions like Delta Lloyd risk manage-
The Supervisory Board of Delta Lloyd
short-term corporate objectives is the
ment is core business.
must exercise reasonable care and sound
prime responsibility of the division
This means a proper management of
judgement in governing the affairs of
management and supporting divisions.
risks to realise profitability versus the
Delta Lloyd, including the foreign
The Executive Board has a direct res-
reliable use of third party funding coming
entities.
ponsibility via a fixed steering model,
partly from policyholders’ premiums or
The Supervisory Board acts in accordance
formulation of performance criteria and
customers’ deposits. Delta Lloyd nv has
approval of corporate plans.
been able to retain a proper solvency
with the recommendations of the Peeters
level, despite an uncertain economy and
Committee (1997) and in line with
The Executive Board monitors the
recommendations of such international
progress of the realisation of plans.
committees as Turnbull. Developments
To this effect, the Executive Board is
Expert Asset Liability Management on
from various supervisory bodies like the
supported by Group Finance & Control
the basis of scenario analysis provides
Dutch Central Bank, Securities Trans-
for the assessment of the planning and
the foundation for an accountable
actions (Supervision) Authority ste,
the reporting process. Group Audit &
course for our customers and us.
failing share prices.
Pensioen- en Verzekeringskamer pvk,
Consultancy provides an unbiased assess-
Health Care Supervisory Authority ctz
ment of operating processes, systems
Delta Lloyd Executive Board and
in the Netherlands or the fsa (Financial
and change projects. At the same time,
management are continuously aware of
Services Authority) abroad, are monitored
central bodies see to the co-ordination
the importance of a clear strategy and
closely and lead to adjustments if
of ict infrastructure and services, hrm,
appropriate policy and plans to meet the
necessary.
Facilities and procurement, security,
business objectives.
compliance and fraud control.
The Audit Committee of the Supervisory
Delta Lloyd is confident that the present
Board meets on a regular basis to review
7-2-7 formula will lead to a successful
all kind of aspects of the operations.
future. Seven strategic pillars, two
Representatives of the Executive Board,
important and well known brands and
internal and external audit, finance and
seven core values.
control are invited for those meetings to
report audit plans, findings and control
During 2001 e.g. new integrated codes of
issues.
conduct and a new integrated security
and fraud control policy have been
realised. An extensive training
programme on corporate values and
security awareness has been successfully
carried out. Together with the intermediary organisations and the insurance
industry, various measures have been
taken, including self regulation.
An important element of the Risk &
Future Divisions in the Delta Lloyd group
Thanks to our solid corporate governance
Control process is the quarterly update
act as independently as possible with a
structure and the existing management
of the Delta Lloyd Risk Map, showing the
strategic framework and clear objectives.
structure, and the current control
outcome of the risk & control self
At group level, small top-quality
measures we can successfully and
assessment related to 22 risk categories.
executive teams supply an added value
effectively react to changing market
Special attention was paid in the year
through an assessment of the corporate
conditions. Recent mergers, take-overs
under review to the risk of terrorist
processes and advice about general
and forms of co-operation strengthen
attacks. The method we use is based on
synergies and co-operation.
this conviction. Business Process
international standards.
Redesign, synergy though integration of
The Risk map is a high level overview of
The external regulators complete the
departments and systems, acceleration
all strategic, tactical and operational
corporate governance framework by
and improvement of reporting, new
risks related to the effectiveness of
visiting us and by reviewing or auditing
initiatives in the field of e-business and
internal control. Specific control issues
our activities. They make recommen-
care are just some developments.
and action plans for improvement have
dations or issue directives.
to be mentioned in the map.
Every six months all Executive Board
We acknowledge the need of an effective
members shall state that the Risk map
corporate governance, but we are worried
covers all relevant risks and they shall
by the threat of too much bureaucracy.
state which aspects requires additional
Transparency and supervision are
reporting. The risk map and Executive
necessary, but too many details and too
Board statements are reported to the
many double or redouble measures are
Audit Committee. The company also
counter productive. Instead of a more
employs other risk management features,
effective monitoring and control it might
such as business balanced score cards.
become an ineffective and expensive
The various divisions also carry out risk
administrative burden.
assessments for the corporate plans.
More rules and regulations result in
increased expenditure which cannot
certainly not where the premium has
already been received and such costs
have not been provided for.
For the Banking Division we have to
implement the Regeling Organisatie en
Beheersing (rob) before 1 April 2002.
For the Insurance Business the Pensioenen Verzekeringskamer are working on
further regulation on risk and control as
well. For Life we have to provide extensive
additional information to policyholders
starting July 2002. We have to implement
the New Law on Privacy (wbp) and many
codes of conduct or other forms of self
regulation.
67
c o r p o r at e g o v e r na n c e & r i s k m a nag e m e n t
completely be added to the price,
68
Consumers know exactly what they want these days. They demand
sincere and personal service from everyone with whom they do
business, including their bank manager, their insurance advisor, and
their insurance company. Others would rather arrange their financial
affairs themselves, via the internet for example, while keeping costs
low. Everyone, however, expects prompt and accurate service.
The people at Delta Lloyd and OHRA are skilful at providing that
service. Increasingly we are providing made-to-measure products,
for the insurance professional as well as the individual client.
We have specialists focusing on specific consumer groups, groups
with common interests and activities. Our specialists are educated
and experienced in their designated fields. Masters of their Trade.
This annual report profiles some of our special consumer groups.
Insurance agents have been Delta Lloyd’s link with the
consumer for many years. At a time when insurance products
are becoming increasingly complex, the role of insurance
agents is indispensable. Consumers need the advice only
insurance professionals can provide. With extensive
knowledge of the insurance business, and support via the
Delta Lloyd Digital Domain, the consumer could not be in
better hands. OHRA intends to be the leading ‘direct writer’
and e-insurer in the field. The internet plays a valuable role
as distribution channel for standard insurance products,
thereby creating a new stream of income.
Water sports
People who love water sports have a unique bond.
Many years ago, Nereus was the first Dutch insurer to recognise
The ‘pleasure craft’ team at Delta Lloyd is setting sail
this special feeling of unity and solidarity by introducing
for these growth markets with innovative products.
an insurance policy especially for water sports.
They have the Sloop Policy and the Open Sailboat Policy.
The Nereus portfolio now sails under the Delta Lloyd flag.
And then there is the Water Sport Mortgage,
Diligentia of 1890 – another water sports insurer –
a revolving credit that allows the boat owner to deduct the interest he pays from his
joined Delta Lloyd in 1992.
taxes without adding the principal to his assets.
The company’s portfolio became known as the Water Sport Policy,
but Diligentia’s boat logo remained intact. And because of our international recognition, Germans, Belgians and British
boat owners are joining us in increasing numbers.
To this day, the three little sails emphasise the feeling of solidarity.
Boat owners want to spend their precious leisure time
In the meantime, the water sports market is riding the rapids.
doing what they like most. If we can help them trim their sails,
More boats are hitting the waves; they are bigger,
more luxurious, more hi-tech and more expensive. Covered boats are particularly popular. then we can be good mates.
We are not the problem; we are the solution.
They are often anchored in exotic harbours in the Mediterranean Sea
That’s why nearly every boat enthusiast in the Netherlands knows about
or the Caribbean.
Delta Lloyd’s Water Sport Policy – the market leader
The Far East and Australia are also gaining in popularity.
in water sports insurance.
At the same time, an increasing number of young people are acquiring simple,
open sailboats thereby expanding that market as well.
Farmers
Doing business in the field of agriculture has changed dramatically.
Environmental laws and rules for transporting farm animals have been tightened.
Epidemics such as the recent foot-and-mouth disease mean that,
When it comes to insurance, the farming business
now, farmers are required to keep careful records of all shipments and contacts.
requires made-to-measure coverage.
Profits are being squeezed as well, partly because the government
And we know exactly how to help.
is reducing farming subsidies.
That’s why we are the second largest providers in this field.
The method of doing business has also been altered.
Our agricultural specialists often have their roots in farming,
There is more contract planting whereby farmers deliver directly to
with parents or grandparents in the business.
supermarkets without a distributor as middleman. And with contract planting,
They know first hand what farming is,
a poor harvest or other disaster is no excuse for non-delivery.
and they know the risks and consequences of
These are all changes in an industry that often sees change as a threat.
giving up a farming business.
Many farmers are quitting.
They offer a range of insurance products to the farmer,
Their businesses are either dissolved, split up
which are significantly better than what is generally available.
or taken over by a neighbouring farmer. The latter leads to large scale farming
For example, there is a unique
requiring massive investments.
hothouse insurance that covers not just
Taking into consideration that the production basis for farmers – land –
the replacement of glass by the square meter
is both scarce and expensive, it is easy
– which is the industry standard – but the rebuilding of the entire building
to understand how a farmer just starting can rack up enormous debts.
if required. And there is income protection
that is perfectly suited to the agricultural business.
Technological Companies
All you need is someone’s spanner falling out of his pocket and into a machine,
to stop an entire production line.
A miscalculation by an employee can have far-reaching consequences as well.
Companies can insure themselves
So who has never made a mistake?
against such unconventional risks with Praevenio Technological Insurances,
The costs for repairing machinery can quickly get out of hand.
market leader in this area, and part of the Delta Lloyd
The resulting damage can multiply beyond all proportion,
General Insurance operations. Niche-provider Praevenio,
especially when repairs are delayed and contractual commitments cannot be met.
established in 1932, employs many
The computer branch is aware of similar risks.
highly educated specialists in their service department. They handle
For example, when a network is down for hours,
claims, make inspections and assessments, and provide
as a result of electricity short-circuiting,
insurance agents with technical as well as commercial insurance advice.
or an entire database is lost.
Praevenio covers not only damage to machinery, and the
Yet, in all of these instances, there is no question of the usual
subsequent consequences to the business.
damage or loss due to storm, theft, fire or flood.
It also provides appropriate coverage during building, rebuilding, or
revisions to machines, installations and building renovations,
and is therefore frequently involved with high profile projects.
They were involved with building electricity generator centres and
wind turbines, as well as the building of the Westerschelde Tunnel
and the Mondriaan Tower in Amsterdam.
Young families
In addition to marriage and children, the purchase of a house
is one of the most important milestones is a person’s life.
It is a step one rarely takes more than once or twice in a lifetime. This is when Delta Lloyd and OHRA prove their worth,
by helping the consumer to make informed choices. The aim is
One’s life changes radically, especially the first time.
to relieve the client of his concerns, by offering solutions
The financial consequences are particularly dramatic.
to many obstacles at once. With Delta Lloyd, he can
The purchaser of a house usually begins with an enormous debt.
His thoughts are primarily consumed with the crucial question: depend on the experience and advice of a professional.
how much will I have to pay per month, and can I afford it? With OHRA, the client can determine rational solutions himself with the use of a clearly defined questionnaire.
At the same time, he is concerned with a million other questions.
For example, the insurance professional will point out
Such as the best way to protect his investment,
the savings advantage of the FormaatNotarissen.
what is the best fire insurance coverage,
He will suggest a security system from Essent Domestiq,
and what are the financial consequences for his family
a service that provides home protection at reduced prices, which
in case of an untimely death.
can be financed with the mortgage.
The advisor will also offer the unique Combination policy, whereby
the value of the household contents is linked to the value of rebuilding the house.
Not only is this approach more economical, but also easier,
more pleasant and reliable.
Naturally, an approach that is welcome by more than just young families.
Entrepreneurs
The government continues to reduce its involvement in the area of
social benefits.
An insurance advisor can use the Employee Benefits Scan
The entrepreneur is expected to fill the resulting gaps.
to bring into focus which employment benefits and
He is expected not only to respond to the change in laws, but also
insurances the employer has implemented in his
to follow the trends of flexibility and individualising of benefits.
organisation. And it can help determine how employee benefits
Furthermore, he must endeavour to recruit and retain
professional employees from a shrinking labour market,
– from pension schemes to disability gap-insurance –
while employees are demanding more perks and benefits. compare to market trends.The Employee Benefits Statement
gives insight into the employment terms and conditions,
In order to extract more loyalty from employees,
the financial schemes, and the insurance benefits
the entrepreneur needs to offer competitive terms of employment.
for each employee.
Delta Lloyd supports employers with a coherent and
In addition, a specially developed software program makes it possible
flexible package of services and insurances.
for the employer to analyse absence trends in his company.
Six years ago, we were one of the first insurers
In this way, he can prevent financial penalties related to PEMBA, a law
to give meaningful substance to the trend
that penalises employers when workers suffer work-related
Employee Benefits.
long-term disability.
Professional knowledge, good advice and sophisticated business tools
are our contribution to our partnership with employers.
We are currently working on complete company packages,
which we will be introducing sometime in 2002.
Internet users
There are many people who like to arrange their financial affairs themselves.
They search for insurance that best meets their requirements, compare terms,
OHRA is continuously refining processing procedures,
conditions, and prices, and effect the policy themselves.
so that costs – and thereby the policy premiums – can be kept low.
OHRA welcomes this group with open arms.
Which is what the consumer wants.
Previously, business was done with these consumers primarily by
He believes, for example, that the internet is the best medium for acquiring a loan.
telephone and mail.
Arranging car insurance is equally convenient.
Increasingly, policies are chosen and effected via the internet.
New wheels? Enter the details, click...
A growing number of ‘surfers’ are discovering OHRA via the World Wide Web.
Done!
The busiest time for the OHRA website is during the week.
To attract visitors to the OHRA site, banners pop up on
Traffic starts in the morning, increasing till after lunch.
a wide variety of sites. It’s also possible to establish
Another busy period is in the evening after dinner.
a sponsored link on a search engine.
Because the site is always ‘open’, business can be transacted
Ads are placed in electronic magazines and in internet newsletters
whenever it’s convenient.
that internet organisations send to their members.
Even at midnight it’s possible to calculate insurance premiums,
We also get potential clients from product comparison sites, where terms,conditions
or register a new policy.
and prices from an assortment of providers are compared.
In the future, e-marketing is expected to play an important role in the marketing mix.
Expats
Dutchmen are globetrotters.
Thousands of our countrymen reside in foreign countries for long periods of time
studying, working as au pairs, teaching or doing much needed work Carnet was developed when students and au pairs
first began to leave in droves. Since then, Delta Lloyd has further refined the package.
in developing countries.
This package allows the client
Those who are gone for short periods can usually retain their domestic coverage.
and his insurance professional to determine,
But people who leave for longer than a year soon discover that
together, the necessary coverage.
insurance coverage in other countries leaves much to be desired.
What is the destination country?
In the United States, for example, medical care is considerably more expensive.
Will he have furnished living quarters?
European medical insurance is just not sufficient.
Is he taking many possessions?
Liability laws abroad are also very different, which can result in costlier claims.
By answering these – and other – questions,
And if one wants to take along furniture or belongings,
Carnet can offer à la carte insurance.
then yet another kind of insurance is required.
A service that saves time, energy and
It is often difficult to determine what kind of insurance one needs
in the designated country.
– more importantly – helps avoid unpleasant surprises.
We also work jointly with Insurope, a large
When busy with all the preparations involved with making the move,
European reinsurer.
not everyone has the time or energy to do the research.
We regulate all the personal insurance
That’s why Delta Lloyd has a unique service for expats, for Dutchmen abroad:
requirements for Dutch organisations that transfer employees abroad.
Carnet Buitenland.
Annual accounts
Consolidated balance sheet after
appropriation of profits
31|12|2001
31|12|2000
Assets
insurance
Intangible assets
– Goodwill
p 81
20.0
20.7
Investments
– Land and buildings
p 81
– Participating interests
p 81
– Other financial investments
p 81
– Securitisised mortgage loans
p 83
– Deposits with ceding undertakings
1,720.4
52.3
19,696.4
- 1,520.8
75.8
1,634.2
52.9
18,234.0
- 553.0
73.4
20,024.1
19,441.5
6,701.9
6,320.7
Investments for the benefit of life assurance
policyholders who bear the risk and saving
fund investments
p 84
Debtors
– From direct insurances
70
p 85
357.3
16.6
492.0
– From reinsurance
– Other debtors
p 85
339.9
17.9
557.1
865.9
914.9
Other assets
– Tangible fixed assets
p 85
40.9
412.8
66.6
– Cash and cash equivalents
– Other assets
36.7
327.5
44.6
520.3
408.8
Payments and accrued income
– Accrued interest and rent
– Deferred acquisition costs
p 85
344.4
204.5
356.3
219.0
– Other prepayments and accrued
income
169.4
Total assets insurance operations
165.3
718.3
28,850.5
27,847.2
5,388.1
3,144.5
34,238.6
30,991.7
740.6
bank
Total assets bank
Total assets
p 86
31|12|2001
31|12|2000
Liabilities
g r o u p c a p i ta l a n d r e s e r v e s
p 88
Perpetual subordinated convertible loan
p 88
p 89
Fund for general banking risks
2,353.9
172.4
9.3
minority interest
2,878.2
172.4
8.0
2,535.6
3,058.6
7.3
11.0
insurance
Technical provisions
– Unearned premiums and unexpired
risks
p 90
– For life assurance
p 90
– For claims outstanding
p 90
– For bonuses and rebates
– Reinsurance
383.2
14,973.1
1,260.6
607.1
375.2
13,736.1
1,129.6
984.8
17,224.0
- 1,464.8
15,759.2
p 90
16,225.7
- 1,036.6
15,189.1
71
policyholders who bear the risk and saving
fund
p 90
6,765.1
- 37.3
6,727.8
– Reinsurance
Other provisions
p 92
6,413.6
- 30.5
6,383.1
104.7
1,214.3
Deposits received from insurers
146.5
780.4
Creditors
– From direct insurance
p 92
783.0
14.6
1,340.3
– From reinsurance
– Other debts
p 92
Accruals and deferred income
Total liabilities insurance
p 93
751.0
18.7
1,118.6
2,137.9
1,888.3
753.0
26,696.9
25,034.5
4,998.8
2,887.6
34,238.6
30,991.7
647.1
bank
Total liabilities bank
p 94
Total liabilities
Consolidated profit and loss account
2001
2000
Result technical account
p 98
– Life
– General
– Care
144.1
- 7.5
8.0
p 101
p 105
130.3
- 26.2
- 4.1
144.6
Investment income
100.0
p 96
– Gross investment income
– Interest securitised mortgage loans
1,279.7
- 59.1
Charges relating to investments
1,621.2
–
1,220.6
1,621.2
- 199.2
- 154.0
Allocated investment return to technical
accounts of:
– Life
p 98
– General Insurance
– Care
- 720.5
- 52.8
- 22.6
p 101
p 105
- 1,131.6
- 56.7
- 18.4
- 795.9
- 1,206.7
Other income
72
– Result mediation activities
– Result banking activities
– Other
p 107
p 108
p 97
Other expenses
p 97
r e s u l t b e f o r e ta x at i o n
Taxation
r e s u l t a f t e r ta x at i o n
Third party share
net result
1
De cijfers over 1998 zijn aangepast voor
vergelijkingsdoeleinden.
- 0.5
3.1
61.1
0.1
21.5
4.5
63.7
26.1
- 67.0
- 36.8
366.8
- 67.4
299.4
- 2.3
297.1
349.8
- 64.8
285.0
- 0.9
284.1
Consolidated Cash flow statement
2001
2000
Cash flow from operating activities
– Net profits
297.1
284.1
1,096.0
- 7.8
97.3
16.9
13.1
- 373.2
14.5
- 264.3
- 231.4
- 11.2
1,371.1
– Increase technical provision net of
reinsurance
– Movements in provisions
– Depreciation interest rate discounts
– Depreciation fixed assets
– Depreciation intangible assets
– Movements in short-term debts
– Deferred acquisition costs
– Interest rate discounts granted
– Movements in receivables
– Other movements
- 31.5
61.6
25.6
10.4
539.7
37.5
- 85.7
- 43.4
- 35.2
647.0
2,134.2
Cash flow from investing activities
Investments and purchases
– Investments in land and buildings and
shares
- 3,645.1
- 5,199.9
- 141.4
- 17,143.0
- 33.3
- 7,162.6
– Investments in group companies and
participating interests
– Other investments
- 23.9
73
- 25.7
- 20,962.8
- 12,412.1
Disinvestments, redemptions and
disposals
– Investments in land and buildings and
shares
– Other investments
3,807.0
16,778.4
0.6
3,744.9
8,036.3
–
20,586.0
11,781.2
- 381.2
- 786.5
- 758.0
- 1,417.4
The movement in investments relating
to the risk of policyholders
Cash flow from financing activities
– Movements long-term debts
– Movements deposit for reinsurers
– Movements short-term loans
– Dividends paid
movement cash
1,206.3
- 2.3
- 925.7
- 82.0
- 200.9
- 6.5
- 275.4
- 93.0
196.3
- 575.8
85.3
141.0
General notes to the annual accounts
1 introduction
1.3 Consolidation principles The conso-
1.1 General The name of the group was
lidation includes all companies in which
changed on 1 January 2002 from Delta
Delta Lloyd, directly or indirectly, has an
Lloyd Nuts Ohra nv to Delta Lloyd nv.
interest of more than one half of the
Delta Lloyd nv is an economic unity
voting rights in the general meeting of
consisting of operating companies, its
shareholders and which can be
key activities including insurance and
considered group companies. Consoli-
banking. The classification of the various
dation takes place on account of the
items in the consolidated balance sheet
integral method. The third party partici-
and profit and loss account, as well as the
pation in group equity is included in the
accounting principles and determination
item minority interests. The consolidated
of results have been brought in line as
balance sheet gives a separate presenta-
much as possible with legislation and
tion of insurance and banking assets and
common practice in the relevant
liabilities. All intercompany, transactions,
branches of industry.
balances and unrealised surpluses and
The profit and loss account has been
deficits on transactions between Group
drawn up with due observance of
companies have been eliminated.
Section 2:402 of the Dutch Civil Code.
1.2 Change in accounting principles
With effect from this financial year, the
method to determine the technical
provisions for yield guarantees has been
74
changed. The effect of the tax reforms
upon shareholders’ funds on 1 January
2001 is € 9.2 million negative The effect
of the tax reforms upon the net result
2001 is € 2.6 million negative. The 2000
figures have been adjusted for the
purpose of comparison.
2 va l ua t i o n o f a s s e t s a n d
Land and buildings Land and buildings
The difference between the redemption
liabilities
are valued at estimated return of private
value and the purchase price is included
2.1 General Assets and liabilities are
sale as rented property. Internal
in the deferred liabilities as yield
stated at nominal value, less provisions
valuations are made annually, external
difference (on balance premium) of
if any, unless another valuation principle
valuations are made on a rotational basis
transitory liabilities (on balance discount),
is mentioned below.
so that all land and buildings are valued
and is accounted for in the profit and
at least once every five years. Buildings
loss account over the average remaining
Foreign currency Assets and liabilities
purchased are valued at cost in the year
term of the investment.
denominated in foreign currencies are
of acquisition. In the event of newly
The difference between the return on
translated at year-end exchange rates.
constructed buildings valuations are
sale and the redemption value is also
Foreign currency transactions are
made at cost plus notional interest or at
accounted for as yield difference and
accounted for at the exchange rates
the lower of cost plus notional interest
spread over the profit and loss account
prevailing at the date of the transactions.
or the market value in the year of
for the remaining term, insofar as the
Translation gains and losses included in
completion.
sold fixed interest investments have
the valuation differences in investments,
Property under development is valued
been replaced by similar investments.
consolidated foreign group companies
at the lower of amounts invested plus
If this condition is not met, realised
and loans to consolidated group
notional interest less investment grants
movements in value on fixed interest
companies, permanent in nature are
or market value. Realised and unrealised
values are included in the result as one
charged to equity. The other translation
movements in value or currency
amount.
gains and losses are accounted for in the
exchange rate movements relating to
profit and loss account.
land and buildings are charged to the
Other securities Shares and other variable
revaluation reserve directly, taxes having
interest securities in the investment
been taken into account.
portfolio are valued at market value.
Financial instruments The financial
instruments, entered into to cover the
Listed funds are included at year-end
Participating interests Participating
quoted prices, unlisted securities are
according to the valuation principles
interests on which significant influence
stated at safe estimated market value.
applying to such positions.
can be exercised are valued at net asset
The financial instruments not entered
value, defined in accordance with the
Realised and unrealised differences in
into to cover the own positions, are
group’s valuation principles.
value or currency exchange rate changes
valued at market value or possible
Movements in value for participating
relating to other securities is included in
return value. Valuation differences are
interests are accounted for in the
net assets directly, taxes having been
included in the profit and loss account.
revaluation reserve.
taken into account.
provisions for yield guarantees was
Other participations are stated at safe
Securitisation The item of other financial
changed.
estimated value (based on the intrinsic
investments includes securitised mort-
value of the companies concerned).
gage loans. In accordance with the
2.2 Insurance operations
Amounts receivable are stated at nominal
accounting principles for such trans-
Intangible fixed assets
value less provisions deemed necessary.
actions adopted by Delta Lloyd nv’s
Goodwill Goodwill and any negative
Dividends received are included in the
parent company in the uk, these balances
goodwill is capitalised in the year of
profit and loss account.
are accounted for on the basis of the
The method to determine the technical
acquisition, or decapitalised, and charged
linked presentation.
to the result on the basis of the expected
life with a maximum of 20 years. Any
Fixed interest values Investments in fixed
positive goodwill will be booked in favour
interest values are based on redemption
of the reserve participation, if not under-
value less provisions deemed necessary,
cost-effective.
which are frequently supplemented
from the return on investments.
The redemption value usually equals the
nominal value.
75
general notes
own positions, are being accounted for
76
Investments and technical provision for
Prepayments and accrued income This
The revaluation reserve includes realised
the account and risk of policyholders
includes accrued interest, current rent
and unrealised results on investments,
and savings funds investments These
and deferred acquisition cost. Acquisition
realised and unrealised results on
investments consist of three groups:
cost is the cost incurred in effecting
movements in currency exchange rates,
unit-linked investments, segregated
insurances. For insurances with annual
as well as the taxes related to these
funds and savings funds investments.
premium payment, the cost incurred in
movements. The profit and loss account
The unit-linked investments and savings
respect of varying business volume, are
includes the structural return on invest-
funds investments shall be valued at
capitalised and amortised. Amortisation
ment in shares and land and buildings.
current value, as provided by Section
is generally spread over the period of
This return consists of the direct return
2:402 of the Dutch Civil Code. As far as
insurance.
(dividends and rents) and an amount for
the savings fund investments concerns,
The deferred acquisition cost in the
indirect return. The return is calculated
this provision is not in keeping with the
General insurance operations include a
by determining the average of the
Rules about the valuation of the invest-
provision for unearned premiums to the
%-return over the past 30 years and by
ments in the guilder investment fund.
risk instalments not yet lapsed.
multiplying this average by the average
In order to provide an insight into the
The deferred acquisition cost in the Life
value of these investments over the past
current value of these investments, this
operations include the commission to
7 years, recalculated for purchases and
value is included in the explanatory
intermediaries and own sales force.
sales. The indirect return of these invest-
notes. For the valuation of the segregated
Amortisation is spread over the term of
ments is then calculated as the difference
pools, the same principles are used, in
premium payment of the assurance
between the return and the realised
principle, as those for the valuation of
(taking account of the availability of the
direct return. The indirect return is
the investments made at the company’s
cover from the premium), with a maxi-
withdrawn from the revaluation reserve
own risk. When the valuation deviates
mum of ten years.
to the extent that the balance of this
from our principles, this is taken into
reserve is positive. In addition at a
account in the calculation of the
Reserves The participation reserve
minimum the legally required reserve
insurance liabilities in question.
includes movements in the retained
needs to be maintained. This reserve
profits of the participations in so far as
concerns the unrealised difference
Other assets This item includes tangible
necessary for the maintenance of the
between the balance sheet value and the
fixed assets, cash and other assets.
desired level of solvency, and the legal
cost price of the equity type investments.
reserve for retained profits. At the same
In addition, the revaluation reserve
Tangible fixed assets Data processing
time, the movements on the negative
includes under corporate annual accounts
equipment is valued at the historical
goodwill account are included in this
all movements in the net asset value of
cost price less accumulated depreciation.
reserve, if not accounted for in the profit
the subsidiaries if not accounted for
Depreciation is made on a straight-line
and loss account.
under participation reserve.
basis over the useful life.
Other tangible fixed assets are also
The perpetual subordinated convertible
valued at the historical cost price less
loan is valued at market value at the
accumulated depreciation. Depreciation
moment of issue.
is made on a straight-line basis over 3 to
10 years. Account is taken of expected
durable depreciations.
Other assets This includes projects
developed for resale. These are valued at
invested amount plus notional interest
or lower market value, less instalments
paid by buyers.
Insurance liabilities These are generally
Actuarial reserves Life The development
Provision for bonuses and rebates This
long-term by nature.
of the mortality risk in the next few
provision relates to profit shares of group
years is taken into account; an extra
contracts to be allocated to the financial
Provision unearned premiums and unexpired
provision is created in this respect. The
year but not yet booked. The volume is
General Insurance risks This provision is
provision is determined in accordance
determined by means of an estimate of
defined in proportion to the risk instal-
with the net method and is increased by
the determining factors and the applic-
ments not yet lapsed over net earned
a provision for administration and
able contractual schemes are taken into
premium. Separate provisions are made
paying out charges. The creation of the
account. Part of this provision relates to
for insurances with a gradually increasing
provision for supplementary assurances
value increase of investments as far as
risk in the course of the period of
is made insofar as payments are made as
these value increases will result in future
insurance, at a premium level
a result of claims incurred but not yet
profit sharing caused by legal or contrac-
independent on age. This provision
reported. The chief actuary will make an
tual obligations.
includes also a catastrophe provision for
annual study into the adequacy of the
storm damages. Allocations are to take
provision. The interest rate debates
place annually in line with market
which are to be written off are reduced
practice. Withdrawals are made to pay
perceptibly from the actuarial life
claims after a catastrophe windstorm.
reserves. The accumulated capitalised
interest rate rebates are stated at
nominal value of discounts granted less
The resolutions and directives about
amortisation. The rebates granted in one
actuarial principles of the Pensioen- en
specific year are written off straight-line
Verzekeringskamer are the basis of the
in ten years. This provision also includes
calculation of the actuarial provision for
the provision for unearned premiums
medical expenses. Actuarial advice is
and the provision for benefits to be paid
included in this respect.
for life assurance activities.
Provision for current risks The provision
Provision for claims outstanding The provi-
for current risks includes amounts to
sion for claims outstanding is determined
compensate premium effects, originated
with statistical methods. On the basis of
partly by Government measures, as well
reported claims, taken into account
as to cover the risk of premiums of
expected future claims inflation trends
insurance contracts which cannot
and statistical variances, the provision is
adequately be increased in the next few
determined using historical develop-
years in comparison with the increase
ments. The applied method takes account
of claims. In addition, this provision
of claims incurred before the balance
provides for amounts for future risks in
sheet date reported but not yet settled,
medical expenses, the calculation being
of claims not yet reported and of income
based on a conservative prospective
from subrogation in connection with
actuarial method, taking account of the
claims and the acquisition of the owner-
conditions set to inforce insurance
ship of insured property. The determina-
agreements and expected market
tion of the provisions is also based on
developments.
claims settling costs still to be incurred,
on the basis of average claims settling
periods for the various types of claims,
considering all future costs, including
future price developments and cost
inflation. The provisions for disability
and personal accident insurance equals
the discounted value of the expected
claims payments; account is taken of
terms, waiting periods as well as
rehabilitation chances and rates of
mortality.
77
general notes
Actuarial provisions Medical Expenses
Technical provisions on behalf of policy-
2.3 Banking
Shares Shares belonging to the invest-
holders and for savings funds These
General Unless another valuation
ment portfolio and other non fixed
technical provisions as far as they relate
principle is mentioned below, the
interest securities are stated at market
to unit-linked investments and savings
accounting principles used by the
value. Differences of valuation are shown
funds, are valued on the basis of the same
Banking company are the same as those
in the revaluation reserve shares and
principles as those used for the valuation
used by the Insurance company.
variable securities. To the extent that this
of the investments on behalf of policy-
valuation reserve is insufficient to absorb
holders in relation to which they are held.
Banks and Loans and advances Banks
price falls, such price falls are accounted
The provision under ‘actuarial reserves
include the bank’s receivables to foreign
for in the profit and loss account. Shares
Life’ applies accordingly, in principle, to
and domestic banks. Loans and advances
and other variable securities belonging
the part related to segregated funds.
include loans and advances to the public
to the trade portfolio are also stated at
and private sector.
market value. Differences in value are
Other provisions
78
charged to the profit and loss account.
Provision for deferred taxation A provision
Investments
The other shares are valued at the lower
has been made for the claim on all eligible
Interest bearing securities Bonds and other
of purchase price and market value.
differences between the commercial and
fixed interest securities held in the invest-
Non-listed shares and other variable
fiscal valuation of assets and liabilities,
ment portfolio are valued at redemption
securities are stated at estimated return
and on the tax allowable reserves. This
value, less a depreciation for reduced
value.
provision equals the cash value of the
value. The difference between this value
future tax liabilities. Considering the
and the purchase price of these fixed
Investment portfolio The investment port-
estimated terms, the calculation of the
interest papers is accounted for in the
folio comprises bonds and other fixed
liabilities are based on percentages
profit and loss account in proportion to
interest securities as well as shares and
varying from zero to the nominal tariff.
the average remaining term of the invest-
other variable-yield securities, which are
If there is a net deferred taxation claim,
ment in the profit and loss account.
held as fixed assets and which, under the
it will be included in other claims insofar
Results due to the sale of fixed interest
bank’s policy, are held for portfolio
as it is realisable in the future.
securities belonging to the investment
investment purposes.
portfolio and for which replacement
Provision for sundry purposes The provision
purchases have taken place are accounted
Tangible fixed assets Owner-occupied
for sundry purposes has been created for
for in the profit and loss account, taking
buildings, including land, are valued at
the purpose of adjusting pensions in
into account the weighted average term
actual value. The actual value is based
payment of (former) employees, for the
of the investment portfolio. Listed bonds
on the value determined by external
cover of voluntary early retirement
and other fixed interest securities
assessors. De buildings and durable
(vut), early retirement and reduced pay,
belonging to the trade portfolio are
installations are subject to straight-line
as well as for expenditure within the
valued at the last known market price
depreciation during the estimated life,
framework of organisational measures.
per balance sheet date. Differences in
with a maximum of fifty years without
value are accounted for in the profit and
taking account of any remaining value.
Provision for the adjustment of automated
loss account. The other securities are
Movements in value are charged to the
systems This provision is made for the
stated at the lower of purchase price and
shareholders’ funds, less taxes relating
consequences of the changes into auto-
market value.
to these movements. The investments
mated systems for the introduction of
in rented houses and contents are
the single currency euro.
capitalised and are also subject to
straight-line depreciation, taking account
of the estimated economic useful life.
Fund for General Banking Risks This fund
has been included to cover general risks
relating to the banking operations.
The balance of additions and withdrawals
to and from this fund are taken up in the
profit and loss account under ‘Addition
or withdrawal to/from the Fund for
General Banking Risks’. Taxation to be
paid or received on the movements in
this fund are charged or credited to the
fund.
79
general notes
3 d e t e r m i na t i o n o f t h e r e s u l t
4 e x p l a na t o r y n o t e s t o t h e c a s h
Revenue Revenue is the total of:
f l o w s ta t e m e n t
– all premiums charged to third parties
The consolidated cash flow statement has
including inwards reinsurance;
been drawn up in accordance with the
premiums also include amounts due
direct method, distinction being made
by savers to the savings funds, volume
between cash flows from operating,
discount and return policy charges;
investment and financing activities.
– investment income;
The net cash flow from operating
– gross commission mediation
activities makes a correction in the result
operations;
– gross commission bank.
for items in the profit and loss account or
movements in balance sheet items which
do not lead to collection or spending in
Pension schemes Delta Lloyd nv The pension
the financial year.
schemes concluded for the employees of
Several, similar items of the Insurance
Delta Lloyd nv in the Netherlands are
activities and the Banking activities have
based on average pay system. The
been combined in the cash flow state-
liabilities resulting from the periodic
ment.
increase in the pensionable salaries as
well as from the increase in pensions in
payment are insured in full and financed
in full every year.
80
Within the group, pension schemes exist
with other funding methodologies.
Extraordinary income and expenditure
This item includes those expenses which
by their nature, frequency and volume
are not included in ordinary operations.
Taxation Corporation taxation is calculated on the estimated taxable amount;
account has been taken of fiscal facilities.
This tax-expenditure is allocated in the
annual accounts to the results, equity, as
well as provision for deferred taxation.
Appropriation of profits The appropriation
of profits has been made on the basis of
article 35 of the Articles of Association.
Income and expenditure have been
allocated to the financial year to which
they relate, except the movements shown
in the valuation of assets and liabilities
which have been accounted for in the
shareholders’ funds directly.
Explanatory notes to the consolidated
balance sheet
31|12|2001
31|12|2000
Assets
insur ance activities
Intangible assets
Goodwill
– Balance sheet value at 1 January
– Purchases
– Depreciation
20.7
12.2
- 12.9
–
31.1
- 10.4
20.0
20.7
Investments
Land and buildings
– Fully owned and occupied
– Not fully owned and occupied
– Other
119.5
40.2
1,560.7
121.5
41.6
1,471.1
1,720.4
– Purchases
– Disposals
– Revaluation and other movements
1,634.2
86.3
- 42.1
42.0
1,634.2
1,513.7
115.2
- 54.7
81
60.0
1,720.4
1,634.2
The cost price of land and buildings at
31 December amounts to € 1,317.0
(€ 1,314.0) million.
Participating interests
– Purchases
52.9
11.6
- 12.2
20.6
24.0
8.3
52.3
52.9
The cost price of participations at
31 December amounts to € 40.2
(€ 65.6) million.
Shares, participating interest and other variable
interest securities
– Listed
– Unlisted
3,828.2
366.5
4,342.2
602.5
4,194.7
4,944.7
31|12|2001
31|12|2000
Bonds and other fixed interest bearing securities
– Listed
– Unlisted
6,817.9
315.3
Investment pools
Mortgage loans
Provision for investment risks
Deposits with credit institutions
82
– Purchases
– Sales and redemptions
425.7
7,133.2
5,774.0
123.3
4,917.8
160.5
18,234.0
20,678.9
- 18,658.1
- 558.4
at the end of the year under review includes
the actual value of bonds and other fixed
interest securities € 6,693.2 (€ 5,891.8) million.
Mortgages € 4,732.0 (€ 3,064.9) million and
other loans € 2,787.8 (€ 3,242.6) million.
The difference between the book value and
the current value of these investments is due
mainly to the difference between the rate of
interest at the moment of purchase and the
one on the balance sheet date. Such interest
rate differences in respect of current liabilities
on account profit sharing schemes do also
affect the actuarial reserves to which these
investments are linked. The current value of
such investments is therefore of limited
importance.
The difference between the redemption value
at the balance sheet date and the cost price of
the bonds and other fixed interest bearing
securities amounts - € 439.7 (- € 472.1) million.
2,876.1
- 48.0
418.0
279.0
18,234.0
16,906.6
12,161.3
- 11,288.5
454.6
19,696.4
The market value on fixed interest rate securities
3,829.7
2,790.1
- 52.0
300.0
289.3
19,696.4
Other loans
5,348.3
18,234.0
31|12|2001
31|12|2000
The cost price of the other financial investments at the end of the year under review
amounts to € 4,067.9 (€ 4,081.1) million for
shares, participating interests and other
variable interest bearing securities € 121.2
(€ 160.5) million for investment pools,
€ 287.0 (€ 277.8) million for the remaining
financial investments and € 284.1 (€ 414.1)
million for deposits with credit institutions.
Securitised mortgage loans
- 1,520.8
- 553.0
Income on account of these mortgage loans
have been transferred by Delta Lloyd nv to a
company established for the purpose (Arena
2000-i bv). These companies issued bonds to
finance these transactions. No gain or loss
are recognised on this transfer.
Delta Lloyd nv is not obliged to support any
losses that may be suffered by the fixed rate
noteholders and do not intend to provide such
83
support. Additionally, the fixed rate notes
e x p l a nat o r y n o t e s t o t h e c o n s o l i dat ed ba l a n c e s h e e t
were issued on the basis that noteholders are
only entitled to obtain payment, as to both
principal and interest, to the extent that the
securitisation company’s respective available
resources of Arena 2000-i bv or Arena 2001-i bv,
including funds due from customers in respect
of the securitised loans, are sufficient. It has
also been defined that noteholders have no
recourse whatever to Delta Lloyd nv.
All the shares in Arena 2000-i bv are held by
Stichting Security Trustee Arena 2000-i bv or
by Stichting Security Trustee Arena 2001-i bv
Delta Lloyd nv does not own, directly or
indirectly, any of the share capital of the
Arena 2000-i bv or Arena 2001-i bv or any
share in Stichting Security Trusty Arena
2000-i bv or Stichting Security Trustee Arena
2001-i bv. Delta Lloyd nv receives payments
from Arena 2000-i bv or Arena 2001-i bv in
respect of fees for loan administrative services,
and also under the terms of interest rate
swaps written between Delta Lloyd nv and
Arena 2000-i bv or Arena 2001-i bv to hedge
its respective exposures to movements in
31|12|2001
31|12|2000
interest rates arising from this transactions.
In each case the effect of the interest rate
swaps between Delta Lloyd nv and Arena
2000-i bv or Arena 2001-i bv, is that the
securitisation company swaps all or part of
the interest flows receivable from customers
in respect of the securitised mortgage loans
into fixed interest flows which are designed
broadly to match the interest payable to fixed
rate noteholders.
Delta Lloyd nv has no right to repurchase
the benefit of any of the securitised mortgage
loans and no obligation to do so, other than in
certain circumstances where Delta Lloyd nv
84
is in breach of warranty.
As per the balance sheet date, Delta Lloyd nv
has for its own account invested in fixed
interest, non-preference bonds A for € 26.5
(€ 36.5) million, for € 2.0 (€ 10.0) million in
mezzanine fixed interest bonds b and for € 1.5
(€ 1.5) million in fixed interest sub-ordinated
bonds d. These bonds were issued by Arena
2000-i bv and are all due 27 November 2062.
In 2001, Delta Lloyd nv purchased for € 32.0
(€ 0.0) million preference fixed interest bonds
a2 and for € 2.0 (€ 0.0) million of non-fixed
interest subordinated bonds d. These bonds
were issued by Arena 2001-i bv and are all
due 19 July 2053.
policyholders who bear the risk and for the
savings fund investments
Unit-linked investments
Segregated funds for group contracts
Savings fund investments
1,418.5
4,769.8
513.6
1,318.5
4,540.2
462.0
6,701.9
– Purchases
– Sales and redemptions
6,320.7
1,537.8
- 750.5
- 406.1
6,320.7
5,534.2
2,587.0
- 1,886.6
86.1
6,701.9
6,320.7
31|12|2001
31|12|2000
The market value of the savings fund investments at the end of the year under review
amounts to € 507.4 (€ 523.6) million.
The difference between the investments and
the provision for the account of policyholders
consists mainly of future amounts to be
invested into the segregated funds, agreements having been made on the period of
introduction. The differences are guaranteed.
Debtors
From direct insurances
– Policyholders
– Intermediaries
227.9
129.4
210.6
129.3
357.3
339.9
Other debtors includes a deferred tax asset
of € 198.0 (€ 41.6) million. The nominal value
amounts to - € 11.4 (- € 144.0) million.
Other assets
85
The composition of this item is as follows:
– Computer equipment
– Other tangible fixed assets
11.9
29.0
10.4
26.3
40.9
– Additions
– Depreciations
– Disposals
36.7
16.9
- 12.1
- 0.6
36.7
40.7
10.8
- 14.8
–
40.9
36.7
The total value of the tangible fixed assets at
year end amounts € 120.2 (€ 109.0) million
and accumulated depreciation at year end
amounts - € 79.3 (- € 72.3) million.
Prepayments and accrued income
Deferred acquisition costs
– Life assurance
– General insurance
147.7
56.8
163.2
55.8
204.5
219.0
Tangible fixed assets
31|12|2001
31|12|2000
bank activities
Total assets bank activities
Goodwill
– Purchases
– Depreciation
–
56.3
- 0.2
–
–
–
56.1
–
Bankers
This item consists of credit balances:
– Due on demand
– Three months or less
– Between three months and one year
– Between one and five years
86
314.6
282.2
17.2
4.3
317.6
87.8
7.4
16.5
618.3
429.3
Receivables from clients
– Mortgage loans
– Loans to Governments
– Other loans
– Commercial loans
1,053.4
7.9
954.3
718.1
870.7
10.6
710.7
216.0
2,733.7
1,808.0
Specification by term remaining:
– Due on demand
– More than five years
439.2
525.2
320.8
654.1
794.4
165.4
430.8
91.7
376.1
744.0
2,733.7
1,808.0
Interest bearing securities
Specification:
– Bonds listed (Dutch Government)
– Other bonds listed
– Other securities
791.2
450.9
127.6
369.3
248.5
62.8
1,369.7
680.6
31|12|2001
31|12|2000
The difference of the redemption value at the
balance sheet date and the purchase price is
€ 7.4 (- € 4.3) million. An amount of € 18.4
(€ 16.1) million has been pledged as security
and is not available for distribution.
Investments
Composition:
– Shares, listed
– Shares, not listed
– Participation interests
43.1
5.0
15.5
15.4
19.3
2.5
20.2
–
79.0
42.0
Tangible fixed assets
Composition:
4.0
33.3
4.5
10.7
37.3
– Investments
– Depreciations
15.2
10.7
16.2
- 4.8
11.1
87
–
14.9
- 10.8
37.3
15.2
The total value of the tangible fixed assets at
year end amounts € 58.0 (€ 25.7) million and
the total value of the depreciation at year end
amounts - € 20.7 (- € 10.5) million.
Other assets
– Receivables from unsettled security transactions
113.2
31.9
288.1
76.5
– Balance forward exchange transactions and
other receivables
401.3
108.4
92.7
61.0
5,388.1
3,144.5
This item includes the amounts taken up on
account of expenses paid in advance and
income not yet invoiced and received.
– Changes in the composition of the group
15.2
31|12|2001
31|12|2000
Liabilities
g r o u p c a p i ta l
2,887.4
- 9.2
2,878.2
– Effect on the system reform
– Restated balance sheet value at 1 January
2,360.5
- 6.6
2,353.9
Movements
– Revaluation of land and buildings
– Indirect yield
– Revaluation of investments
– Goodwill
– Tax effects on above mentioned movements
– Retained profits
– Dividend paid from the reserves
– Balance sheet value at 31 December
42.0
- 223.0
- 636.0
–
77.6
60.0
- 199.5
485.4
6.0
- 18.7
- 739.4
333.2
297.1
- 82.0
2,353.9
- 93.0
2,878.2
172.4
172.4
284.1
88
As from the moment the ordinary shares of
Delta Lloyd nv are taken up in the listing
of an official stock exchange, the convertible
a-preference shares may be converted on a
one to one basis into ordinary Delta Lloyd nv
shares, with the stipulation that an amount
of € 1,730.42 be paid per converted share.
This payment received will be offset, to the
extent of the balance of the perpetual subordinated convertible loan.
The conversion price will be adjusted upon the
issue of ordinary shares in the Delta Lloyd nv,
if there is a restructuring of share capital in
Delta Lloyd nv or in the event of a share split
of the issued ordinary Delta Lloyd nv shares
into ordinary shares with a lower nominal
value.
This loan with a nominal value of
€ 489.9 million has a perpetual term at a
rate of interest of 2,5%.
31|12|2001
31|12|2000
This rate is indexed annually by 1% from the
financial year 2000 until 2009 inclusive.
The loan is subordinated to all other liabilities
of Delta Lloyd nv.
Fund for general banking risks
– Value at 1 January
– Transfer deferred taxation
– Addition charged to result
8.0
4.5
- 2.2
- 1.0
– Value at 31 December
6.1
–
- 0.3
2.2
9.3
8.0
2,535.6
3,058.6
Insurance company solvency
– Current solvency
– Legally required solvency
2,135.0
1,158.6
3,094.8
1,050.5
976.4
Solvency margin
2,044.3
The current solvency for the insurance
company of Delta Lloyd nv reported as a
89
(295%).
– Current solvency
– Internal required solvency
2,135.0
1,737.9
3,094.8
1,575.7
397.1
1,519.1
Actual own funds
323.4
224.1
bis-ratio
14.5%
8.0%
17.2 %
Solvency margin
The required solvency in line with the Delta
Lloyd nv standards, expressed as a percentage
of the legally required solvency, is 150% (150%).
Solvency bank activities
Legally required bis-ratio
The current solvency in Delta Lloyd nv is
184% (275%) as a percentage of the required
solvency as required by the supervisory bodies
in het insurance and banking industry.
8.0 %
percentage of the required solvency is 184%
31|12|2001
31|12|2000
insurance
Technical provisions
Unearned premiums and unexpired risks
– Provision for unearned premiums and
current risks
– Catastrophe provision
– Actuarial provision medical expenses
283.4
17.7
82.1
283.0
18.4
73.8
383.2
375.2
For life assurance
– Actuarial reserves life
– Interest rate rebates not yet written off
15,397.9
- 424.8
13,994.3
- 258.2
14,973.1
90
13,736.1
For claims outstanding
– Provision for claims outstanding
– Other technical provisions
1,254.8
5.8
For bonuses and rebates
1,129.4
0.2
1,260.6
1,129.6
607.1
984.8
17,224.0
16,225.7
Reinsurers’ share of technical provisions
– For unearned premiums and current risks
– For life assurance
– For paid claims
– For profit sharing and discounts
- 0.9
- 1,317.0
- 146.2
- 0.7
- 7.5
- 932.4
- 95.6
- 1.1
- 1,464.8
- 1,036.6
Technical provisions for life assurance policies
where the Investment risk is borne by policyholders and for saving funds
– Technical provisions for life assurance policies
where the Investment risk is borne by policyholders
– Deposits held in the savings funds
6,243.2
521.9
5,901.1
512.5
6,765.1
6,413.6
31|12|2001
31|12|2000
Share reinsurers
– Technical provisions for insurances in which
policyholders bear the investment risk
Total technical provisions
- 37.3
- 30.5
22,487.0
21,572.2
– Balance sheet value total technical provisions
at 1 January
– System reform
21,558.1
14.1
– Corrected technical provisions at 1 January
– Change in the composition of the group
20,215.1
10.1
21,572.2
20,225.2
174.8
–
Technical account life
– Change technical provision net of reinsurance
– Profit sharing and discounts
– Movements interest rate discount
1,246.3
- 377.3
- 166.6
1,063.4
135.0
- 24.1
702.4
1,174.3
Technical account general insurance
– Unearned premiums
5.3
56.9
16.7
91
115.9
62.2
132.6
Technical account care
– Unearned premiums
– Claims outstanding
- 18.0
- 6.6
Total technical provisions at 31 December
13.8
26.3
- 24.6
40.1
22,487.0
21,572.2
Interest rate discounts
– Value at 1 January
– Discount granted
– Depreciation interest rate discount
Value at 31 December
The provision for actuarial reserves as well
as the provision for sundry purpose includes
amounts of € 619.5 (€ 510.2) million and
€ 51.1 (€ 63.9) million respectively, relating
to the pension schemes of Delta Lloyd nv
employees.
258.2
263.9
- 97.3
234.1
85.7
- 61.6
424.8
258.2
– Claims outstanding
31|12|2001
31|12|2000
Other provisions
Provision for sundry purposes
– Balance sheet value on 1 January
– Payments charged to the provision
– Additions
– Release
132.3
- 26.0
15.6
- 19.2
146.4
- 12.8
4.3
- 5.6
102.7
132.3
Provision for adjustment to automated systems
– Balance sheet value on 1 January
– Payments charged to the provision
– Additions
– Release
92
14.2
- 11.4
–
- 0.8
32.5
- 18.3
–
–
2.0
14.2
104.7
146.5
Creditors
Debts from direct insurance operations
– Intermediaries
– Policyholders
29.0
754.0
31.9
719.1
783.0
751.0
For amounts due to policyholders the payment
term can be specified as follows:
– Term one year or less
– Term between one year and five years
– Term more than five years
517.5
51.9
184.6
524.6
95.8
98.7
754.0
719.1
The average interest rate for amounts due with a payment
term of more than one year is 5.9% (5.5%).
Other creditors
Other long-term creditors
– Term between one year and five years
– Term more than five years
28.6
8.0
102.0
35.9
36.6
The average interest rate is 6.7% (4.5%).
137.9
31|12|2001
31|12|2000
Short-term creditors
– Dividend
– Corporation taxation
– Other taxes and social security premiums
– Financial institutions
– Other
82.0
295.7
18.2
450.0
457.8
93.0
147.2
24.1
365.6
350.8
1,303.7
1,340.3
980.7
1,118.6
In the amount of financial institutions there
is an amount included of € 48.0 (€ 37.3) million
relating to mortgage debt.
– Provision for yield differences
– Other
481.4
271.6
380.8
266.3
753.0
647.1
Off balance sheet commitments and contingent
liabilities
– Property under development
29.3
20.4
9.5
18.1
19.8
32.7
18.6
11.8
157.5
48.5
238.4
93
property development for Resale
– Guarantee for investing in other categories
– Rent commitments
13.5
– Pledged stock portfolio for pension agreement
nuts ohra Beheer bv
– Guarantees and other contingent liabilities
issued:
Term between one year and five years
Term between five and ten years
46.1
329.2
391.6
56.6
– Commitments related to investments in
31|12|2001
31|12|2000
bank
Total liabilities banking operations
Amounts due to credit institutions
Specification by term remaining:
– Due on demand
– More than five years
43.3
279.9
5.8
2.1
40.5
102.6
62.5
15.4
17.5
–
371.6
198.0
Amounts due to clients
– Savings
884.4
519.3
1,137.5
724.4
88.1
134.4
741.9
481.7
– Specification by term remaining:
Due on demand
Three months or less
Between three months and one year
Between one and five years
More than five years
94
Other liabilities
Provisions
484.8
152.1
284.8
96.7
3,710.7
2,019.4
806.8
71.1
38.6
623.6
40.8
5.8
– Appropriations
– Additions
– Release
4.4
- 2.1
2.5
27.4
–
4.8
- 1.9
1.5
–
–
32.2
4.4
Actuarial reserves
– Appropriations
– Additions
– Change in the composition of the group
– Release
1.4
- 1.0
1.7
4.5
- 0.2
0.5
- 0.9
1.8
–
–
6.4
1.4
4,998.8
2,887.6
31|12|2001
31|12|2000
liabilities
Contingent liabilities
53.5
11.4
60.9
93.4
–
–
98.5
This item includes the contingent liabilities
on account of guarantees, securities and
severally liabilities as meant in section 403
paragraph 1, sub f of Title 9 Book 2 of the
Dutch Civil Code.
Irrevocable facilities
This item includes irrevocable credit facilities.
Currency risks
This item represents the sum of the counter
value in euros of the assets and liabilities in
foreign currency, specified as follows:
– Assets
– Liabilities
95.8
Derivatives
The weighted as well as the unweighted credit
95
balance sheet date is as follows:
– Interest contracts
– Currency contracts
– Other contracts
583.3
656.6
18.8
1,106.7
49.2
15.6
434.8
11.9
Assets charged
Certain shares and bonds have been pledged
as collateral. These assets are therefore no
longer available for distribution.
A number of claims have been incurred
including one in connection with the
termination of th Film Fund. All claims are
being disputed. In account of legal advice
received and other information gathered,
we have assumed that these will have no
material adverse effect on the company’s
financial position. No provision have therefore been made in respect of these claims.
equivalent of the total derivatives as per the
profit and loss account
2001
2000
Investment income
The Netherlands
Land and buildings
Other investments
102.0
1,060.8
93.8
981.3
1,162.8
1,075.1
2.1
1,164.9
1,392.8
Realised and unrealised results on investments
for the account and risk of policyholders and
317.7
Other eu countries
Land and buildings
Other investments
23.4
246.3
22.3
335.4
269.7
357.7
- 229.9
39.8
- 147.6
210.1
96
Countries outside the eu
Land and buildings
Other investments
1.3
14.6
1.4
16.9
15.9
18.3
–
–
1,220.6
1,621.2
The return on investments consist of € 997.6
(€ 1,421.7) million from direct returns and for
€ 223.0 (€ 199.5) million from indirect returns.
Summary return on equity investments 1
2001
2000
1999
1998
1997
451.1
- 907.1
141.4
- 20.1
398.0
257.0
280.4
221.5
124.6
243.7
- 103.1
161.5
89.6
60.3
- 9.0
44.2
- 16.3
- 10.6
- 8.5
- 6.4
- 334.7
728.3
573.8
100.9
323.9
Return on investments
– Direct returns (gross)
– Unrealised investment returns
– Realised return on investments
– Direct asset management expenses
Total
The income from land and buildings includes
€ 9.1 (€ 9.4) million for market-compliant
rents for immovable property own occupied.
The return on investments is the balance of
rents after deduction of property management
expenses, dividends, interest on fixed interest
investments after deduction of additions to
the provision for investment risks and relevant
movements of the balance sheet item yield
differences and current assets.
97
funds amounts to € 19.7 (€ 15.5) million.
The allocation of the return on investments to
the non-technical account is made on the basis
of the assets allocated to capital and reserves.
2001
2000
Investment expenditure
Management and interest charges
Other income
- 199.2
- 154.0
61.1
4.5
- 67.0
- 36.8
Other income includes the result on property
sale projects, revenue on service rendered and
revenue of an incidental nature.
Other expenditure
Other expenditure includes expenditure of an
incidental nature.
1
Equity type investments includes Land and buildings
as well as shares.
e x p l a nat o r y n o t e s t o t h e c o n s o l i dat ed p r o f i t a n d l o s s ac c o u n t
The income from investments of the savings
Consolidated technical account Life insurance
2001
2000
Earned premiums net of reinsurance
– Gross written premiums
– Outward reinsurance premiums
2,686.6
- 99.1
Allocated investment income
Other technical income net of reinsurance
2,283.1
- 94.8
2,587.5
2,188.3
720.5
1,131.6
20.0
17.2
Claims incurred net of reinsurance
– Gross claims
– Reinsurers’ share
- 1,553.6
101.6
- 1,583.5
111.8
- 1,452.0
- 1,471.7
Changes in technical provisions net of
reinsurance
Actuarial reserves
– Gross
- 1,256.5
10.2
- 1,063.2
- 0.2
- 1,246.3
- 1,063.4
- 21.6
- 257.6
- 457.0
- 411.2
- 7.0
- 2.9
144.1
130.3
98
Profit sharing and discounts
Operating expenses
Other technical expenditure net of
reinsurance
result technical account l ife
assurance
technical account Life assurance
gross written premiums can be
With profit
Without profit
Contracts for
Contracts for
broken down as follows
bonuses
bonuses
risk and benefit
risk and benefit
Total
of policyholders
of policyholders
with profit
without profit
bonuses
bonuses
Financial year 2001
Individual assurance agreements
– Annual premiums
421.1
31.2
86.4
– Single premiums
584.9
32.2
10.8
133.2
1,006.0
63.4
97.2
416.8
– Annual premiums
281.8
14.2
239.1
0.2
– Single premiums
371.1
4.1
192.7
–
652.9
18.3
431.8
0.2
1,103.2
1,658.9
81.7
529.0
417.0
2,686.6
418.6
38.0
135.6
256.3
283.6
1,583.4
Group contracts
Financial year 2000
Individual assurance agreements
– Annual premiums
– Single premiums
99
402.2
40.8
8.8
149.6
820.8
78.8
144.4
405.9
– Annual premiums
240.7
11.0
162.5
0.2
– Single premiums
210.9
8.1
199.8
–
451.6
19.1
362.3
0.2
833.2
1,272.4
97.9
506.7
406.1
2,283.1
1,449.9
Group contracts
2001
2000
breakdown gross premiums by product
by geographical region
The Netherlands
– Individual policies
– Group policies
1,012.8
863.6
953.9
654.6
1,876.4
1,608.5
Other eu countries
– Group policies
544.1
222.4
469.8
159.5
766.5
629.3
Countries outside the eu
100
– Group policies
26.5
17.2
Reinsurance income and expenditure
26.2
19.1
43.7
45.3
2,686.6
2,283.1
42.0
38.7
Bonuses and rebates
– Profit sharing
– Depreciation interest rate discount
- 118.9
97.3
- 196.0
- 61.6
- 21.6
- 257.6
Policyholders bonuses includes amounts paid
for excess interest clauses and other types of
bonuses.
Operating expenses
– Acquisition costs
– Movements of deferred acquisition costs
- 137.1
- 20.4
- 137.8
- 22.2
- 157.5
- 160.0
- 325.1
- 280.4
25.6
29.2
- 457.0
- 411.2
– Management expenses and staff costs,
and depreciation fixed assets
– Commission and profit commissions
received from reinsurers
Consolidated technical account
General insurance
2001
2000
– Gross premiums
– Outward reinsurance premiums
751.8
- 34.2
773.7
- 52.3
717.6
721.4
Change in provision unearned premiums
and current risks
– Gross
0.8
- 6.1
- 8.0
- 8.7
- 5.3
712.3
704.7
52.8
56.7
- 16.7
– Gross claims
- 436.9
16.7
- 420.6
25.3
- 420.2
- 395.3
Change in provisions for claims
– Gross
Operating expenses
101
- 77.4
20.5
- 147.6
31.7
- 56.9
- 115.9
- 477.1
- 511.2
- 295.5
- 276.4
- 7.5
- 26.2
result technical account gener al
insurance
Notes to the consolidated technical account
General insurance
pa / Sickness
Motor-
Motor
liability
other
breakdown of technical account by
classes of business 2001
– Written premiums
121.5
153.8
102.8
– Earned premiums
121.0
153.6
106.6
– Investment income
10.5
16.1
3.7
– Claims
- 96.2
- 129.2
- 62.6
– Operating expenses
- 60.3
- 50.9
- 40.3
13.9
4.1
- 0.5
- 11.1
- 6.3
6.9
95.0
– Reinsurance income/expenditure
Technical result
Geographical breakdown of premium income
– The Netherlands
111.4
121.2
– Other eu countries
0.2
25.5
–
– Countries outside the eu
9.9
7.1
7.8
121.5
153.8
102.8
– Written premiums
114.8
159.0
124.7
– Earned premiums
113.6
157.5
124.1
10.3
18.7
4.1
– Claims
- 87.6
- 149.9
- 75.4
– Operating expenses
- 32.3
- 56.2
- 44.5
- 2.6
0.2
0.3
1.4
- 29.7
8.6
102.5
130.4
109.4
0.2
18.2
5.8
12.1
10.4
9.5
114.8
159.0
124.7
102
breakdown of technical account by
classes of business 2000
– Investment income
– Reinsurance income/expenditure
Technical result
Geographical breakdown of premium income
– The Netherlands
– Other eu countries
– Countries outside the eu
All amounts are gross; reinsurance income
and expenditure have been netted of.
Marine
Fire and other
General
material
liability
Other
Total
damage
39.1
258.3
60.2
16.1
751.8
39.7
251.6
63.9
16.2
752.6
10.5
9.3
0.6
52.8
- 133.9
- 61.2
- 8.1
- 514.3
- 13.3
- 98.5
- 27.1
- 5.1
- 295.5
- 0.6
- 20.3
2.5
- 2.2
- 3.1
4.8
9.4
- 12.6
1.4
- 7.5
38.7
238.0
58.7
15.0
678.0
–
8.0
1.5
0.4
35.6
0.4
12.3
–
0.7
38.2
39.1
258.3
60.2
16.1
751.8
41.0
255.5
61.5
17.2
773.7
40.6
250.9
62.0
17.0
765.7
2.1
11.6
9.0
0.9
56.7
- 26.9
- 160.8
- 55.5
- 12.1
- 568.2
- 13.8
- 99.3
- 27.1
- 3.2
- 276.4
- 1.3
2.2
- 1.7
- 1.1
- 4.0
0.7
4.6
- 13.3
1.5
- 26.2
40.2
235.0
60.0
15.1
692.6
–
8.4
1.5
1.5
35.6
0.8
12.1
–
0.6
45.5
41.0
255.5
61.5
17.2
773.7
103
n o t e s t o t h e c o n s o l i dat ed t e c h n i c a l ac c o u n t g e n e r a l i n s u r a n c e
2.1
- 23.1
2001
2000
Operating costs
– Acquisition costs
– Movement of deferred acquisition cost
- 183.1
1.0
- 183.2
1.5
- 182.1
- 181.7
- 120.1
- 100.6
6.7
- 295.5
- 276.4
– Management expenses, staff costs and
depreciation of fixed assets
– Commissions and profit sharing received
from reinsurers
5.9
Commission cost have been included in
operating costs.
Claims settling costs are part of gross claims
incurred:
104
– Gross incurred claims
– Claims handling costs
- 490.0
- 24.3
- 542.6
- 25.6
- 514.3
- 568.2
Consolidated technical account
Care insurance
1
2001
2000
– Gross written premiums 2
633.7
603.2
– Contribution to Public Health Care
Funds
74.2
82.2
707.9
685.4
Change in provisions unearned
premiums and current risks
– Gross
17.9
0.1
Income from services
- 13.9
0.1
18.0
725.9
671.6
22.6
18.4
3.0
7.8
- 13.8
– Gross claims
– Resinsurers’ share
- 670.2
1.8
- 594.0
1.8
- 668.4
- 592.2
Change in provisions for claims
– Gross claims
Operating expenses
Other technical account Care insurance
6.7
- 0.1
- 26.2
- 0.1
6.6
- 661.8
- 618.5
- 80.1
- 81.3
- 1.6
- 2.1
8.0
- 4.1
- 26.3
result technical account care
insurance
1
This includes private medical expenses insurances
as well as the financial flows from (standard package)
policies on account of the Medical Insurance (Acces)
Act (wtz), which belong to the gi class of Personal
Accident and Sickness.
2
The earned premiums have nearly entirely been
realised in the Netherlands.
105
Notes to the consolidated technical
account Care insurance
2001
2000
Operating costs
– Acquisition cost
- 29.7
- 38.1
- 50.7
- 51.1
0.3
7.9
– Management expenses, staff costs and
depreciation fixed assets
– Commission and profit sharing received from
reinsurers
- 80.1
- 81.3
Commission cost have been included in
operating costs.
Claims settling costs are part of claims:
– Gross incurred claims
– Claims handling costs
- 651.9
- 11.6
- 602.9
- 17.3
- 663.5
106
- 620.2
Consolidated profit and loss
mediation activities
– Commission received
– Expenses
p r o f i t b e f o r e ta x at i o n
2001
2000
2.4
- 2.9
- 3.0
- 0.5
0.1
3.1
107
Consolidated profit and loss account Bank
2001
– Interest income
– Interest expenditure
2000
179.0
- 127.1
161.9
- 117.5
51.9
– Commission received
– Commission paid
42.3
- 12.8
44.4
126.0
- 65.5
29.5
60.5
– Income from securities and
participations
– Result from financial transactions
– Other income
11.5
8.9
8.3
Total
– Expenses
– Revaluation of receivables
– Other expenditure
108
Total
Operating result
– Interest on shareholders’ fund
o p e r at i n g r e s u l t b e f o r e ta x at i o n
–
–
11.6
28.7
11.6
110.1
116.5
103.2
2.8
6.1
100.8
2.0
1.6
112.1
104.4
- 2.0
5.1
12.1
3.1
21.5
9.4
expenses and commission
2001
2000
Expenses and commission
Wage sum
Pension premium
Other social security contributions
Sundry expenses
286.3
34.6
39.5
340.5
Commissions
248.5
27.5
31.6
386.6
700.9
336.7
1,037.6
969.4
35.9
42.9
694.2
275.2
Sundry expenses includes an amount of € 6.5
(€ 5.8) million for rent of offices owned and
occupied. Commissions include commission
paid to the sales organisation.
The expenses accounted for in the annual
accounts is as follows:
Claims
Operating expenses
– Technical account life
457.0
411.2
295.5
80.1
276.4
– Technical account general insurance,
including care insurance
– Technical account care insurance
832.6
54.1
112.1
–
2.9
1,037.6
Investment expenses
Operating expenses Bank
Operating expenses Holding
Operating expenses mediation activities
109
81.3
768.9
45.7
104.4
4.5
3.0
969.4
Staff numbers (converted to full-time-equivalents)
– Delta Lloyd Insurance
– ohra Insurance
– Delta Lloyd Banking Division
– Other
2,742
1,038
1,311
986
429
2,340
1,086
782
961
470
6,506
Option rights to shares cgnu Plc.
760,374 (684,866) options over cgnu Plc.
shares were granted in 2001 to Delta Lloyd nv
employees. 55,186 (86,141) of these were
granted to members of the Executive Board,
the rest to the management. A total number
of 2,217,786 options on cgnu Plc. shares had
been issued on 31 December 2001. Currently
it is not possible for Delta Lloyd nv to grant
options to all employees.
5,639
Remuneration of managers and Supervisory
Board
The amount charged tot the company in the
current financial year in respect of salaries of
managers and former managers, of members
of the Supervisory Board and former members
of the Supervisory Board respectively as
meant in section 2: 402 are € 1.9 (€ 1.7) million
and € 0.2 (€ 0.2) million respectively.
Loans have been granted to managers and
Supervisory Board members, of which
€ 0.2 (€ 0.2) million is still outstanding at
31 December 2001, at an average interest rate
of 5.7% (5.7%).
sa l a r y a n d b o n u s e x e c u t i v e b oa r d 1
2001
2000
In thousands of euros
N.W. Hoek
Salary
110
Bonus
431.4
184.0
368.1
150.9
615.4
519.0
C.H. Tesselhoff
Salary
Bonus
368.1
184.0
367.7
150.9
552.1
518.6
P. J.W.G. Kok 2
Salary
Bonus
317.7
66.5
–
–
384.2
–
J.E. Jansen 3
Salary
Bonus
1
The salaries are fixed for a period of two years.
2
Member of the Executive Board with effect from
1 January 2001
3
Retired with effect from 1 April 2001
108.6
260.6
434.3
217.4
369.2
651.7
1,920.9
1,689.3
p e n s i o n r i g h t s e x e c u t i v e b oa r d
I n thousands of euros
Age on 31|12|2001
Number of years
Increase accrued
Accrued
with the Group
rights in 2001
pension right
on 31|12|2001
45
61
47
N.W. Hoek
C.H. Tesselhoff
P. J.W.G. Kok
on 31|12|2001
4
31
2
30
6
50
136
202
88
mortgag es and loans executive board
In thousands of euros
Average interest
31|12|2001
Average interest
31|12|2000
rate
rate
C.H. Tesselhoff
241
5.7 %
241
5.7%
Total
241
5.7 %
241
5.7%
111
Number of options
Position on
Granted in the
Exercised in the
Position on
Exercise price
31|12|2000
course of the year
course of the year
31|12|2001
(in pence)
Price at the
exercise date
(in pence)
J.E. Jansen
127,664
23,794
23,794
7,598
–
Total
231,880
55,186
N.W. Hoek
67,972
C.H. Tesselhoff
26,919
P. J.W.G. Kok
9,325
–
–
–
- 12,794
91,766
50,713
16,923
114,870
- 12,794
274,272
–
–
–
581
–
–
–
995
e x p l a nat o r y n o t e s t o t h e c o n s o l i dat ed e x p e n s e s a n d c o m m i s s i o n
option scheme cgnu plc.
Balance sheet of Delta Lloyd nv
31|12|2001
31|12|2000
Assets
Investments
p 114
15.3
14.2
2,258.0
450.3
2,144.5
– Participations in group companies and
p 114
other participations
– Other financial investments
p 114
Other receivables
1,161.7
2,723.6
3,320.4
225.7
70.9
21.9
18.9
v e r s l a g va n d e r a a d va n b e s t u u r
Other assets
p 115
– Accrued interest and rent
– Other prepayments and accrued income
0.1
22.2
Total
0.1
3.4
22.3
3.5
2,993.5
3,413.7
112
Liabilities
Shareholders funds 1
– Issued and fully paid up capital
– Share premium account
– Participation reserve
– Revaluation reserve
– Other reserves
p 116
p 116
p 116
p 117
p 117
Provisions
Creditors
p 117
p 118
Total
1
The capital at risk amounts to
€ 2,526.3 (€ 3,050.6).
116.4
44.5
1,131.3
816.1
245.6
116.4
44.5
966.2
1,554.0
197.1
2,353.9
2,878.2
172.4
19.2
431.9
16.1
172.4
2,993.5
30.8
319.6
12.7
3,413.7
Profit and loss account of Delta Lloyd nv
2001
– Results participations after taxation
– Other result after taxation
2000
263.0
34.1
242.9
41.2
297.1
r e s u l t a f t e r ta x at i o n
284.1
Allocation of result
– Transferred to participating reserve
– Transferred to other reserves
163.3
133.8
136.9
147.2
284.1
v e r s l a g va n d e r a a d va n b e s t u u r
297.1
113
113
1
De cijfers over 1998 zijn aangepast voor
vergelijkingsdoeleinden.
Notes to the balance sheet and profit and loss
account of Delta Lloyd nv
31|12|2001
31|12|2000
General
The valuation of assets and liabilities and the
determination on the results are in compliance
with the principles set out on pages 74 to 80.
Investments
Land and buildings
15.3
Not used for own purposes
14.2
The cost price of land and buildings at
31 December amounts € 16.7 (€ 16.7) million.
Participations
Participations in group companies
– Share capital
– Loans
– Receivables/payables
2,392.2
149.5
65.5
2,563.2
108.5
- 178.5
2,607.2
- 364.0
14.8
2,258.0
Long-term loans payable
Other participations
2,493.2
- 364.0
15.3
2,144.5
114
– Acquisitions
– Investments
– Movement receivables and loans payable
– Other movements
2,144.5
133.0
–
- 284.7
265.2
1,835.2
–
100.0
- 142.6
351.9
2,258.0
2,144.5
A term in excess of five years applies to
long-term debts.
– Shares
– Loans
– Bonds
448.7
0.4
1.2
1,159.8
1.0
0.9
450.3
1,161.7
2,723.6
3,320.4
31|12|2001
31|12|2000
The cost price of the stocks at 31 December is
€ 507.2 (€ 663.5) million.
The market value of fixed interest securities
at 31 December is € 0.6 (€ 1.2) million for loans
and for € 0.9 (€ 0.4) million for bonds.
At the balance sheet date there was, similar to
last year, no difference between redemption
value and cost price.
Other assets
Fixed assets
5.8
16.1
4.1
14.8
21.9
18.9
The total value of the investments at year end
amounts to € 59.4 (€ 50.0) million and the
accumulated value of the depreciation at year
end amounts to € 37.5 (€ 31.1) million.
Other receivables includes a claim on account
115
of deferred taxation of € 201.9 (€ 58.2) million.
d e l ta l l o y d
The nominal value is € 25.7 (- € 128.2) million.
Issued and fully paid up share capital
The company’s authorised capital is dividend
into 5 million ordinary shares of € 9,08 each
1,5 million convertible a preference shares of
€ 9.08 each and 170,000 b preference shares
of € 453.78 each.
At the end of the year under review ordinary
shares as well as preference shares had been
issued and fully paid to a nominal amount of
€ 116.4 (€ 116.4) million.
31|12|2001
Share capital
31|12|2000
Authorised
Capital not
Issued / paid
Authorised
Capital not
Issued / paid
capital
issued
up capital
capital
issued
up capital
Ordinary shares
Convertible preference shares a
Preference shares b
Total shares
45.4
13.6
77.1
15.4
4.3
–
30.0
9.3
77.1
45.4
15.4
13.6
4.3
9.3
77.1
–
77.1
136.1
19.7
116.4
136.1
19.7
116.4
30.0
As from the moment the ordinary shares of
Delta Lloyd nv are taken up in the listing of
an official stock exchange, the convertible
a-preference shares may be converted on a
one to one basis into ordinary Delta Lloyd nv
116
shares, with the stipulation that an amount of
€ 1,730.42 be paid per converted share.
This payment received will be offset, to the
extent of the balance of the perpetual subordinated convertible loan.
The conversion price will be adjusted upon the
issue of ordinary shares in the Delta Lloyd nv,
if there is a restructuring of share capital in
Delta Lloyd nv or in the event of a share split of
the issued ordinary Delta Lloyd nv shares into
ordinary shares with a lower nominal value.
31|12|2001
31|12|2000
Share premium account
– Movements
44.5
–
44.5
–
44.5
– Balance sheet value at 31 December
44.5
Participating reserve
– Balance brought forward
– Effect of the system reform
– Corrected balance sheet value at 1 January
– Addition to retained profits
– Movements in respect of goodwill
– Other movements
– Balance carried forward
975.4
- 9.2
966.2
829.9
163.3
–
1.8
136.9
- 6.6
823.3
6.0
–
1,131.3
966.2
31|12|2001
31|12|2000
Revaluation reserves
– Revaluation of investments
– Revaluation of participations
– Taxation related to these revelations
1,554.0
- 272.0
- 518.8
52.9
1,226.8
253.7
98.1
- 24.6
816.1
1.554.0
€ 447.1 (€ 824.3) million of the revaluation
reserve at 31 December relates to unrealised
results.
Other reserves
– Allocation from profits
– Dividend payments from the reserves
– Other movements
197.1
133.8
- 82.0
- 3.3
Total shareholders’ funds
142.9
147.2
- 93.0
–
245.6
197.1
2,353.9
2,878.2
Provisions
117
d e l ta l l o y d
– Appropriations
– Additions
– Release
29.3
- 19.6
10.3
- 0.8
35.5
- 11.1
4.9
–
19.2
29.3
Provision for the adjustment of automated
systems
– Appropriations
– Release
1.5
- 0.7
- 0.8
7.5
- 6.0
–
–
1.5
19.2
30.8
31|12|2001
31|12|2000
Liabilities
Dividend
Corporate taxation
Other taxation and social security premiums
Other
82.0
302.4
1.0
46.5
93.0
149.8
7.9
68.9
431.9
319.6
Result participating interests after tax
€ 261.8 million (€ 242.9) of the result from
participating interests relates to the relationship with group companies and € 1.2 (€ nil)
million with other participating interests.
Personnel costs
Wage sum
118
Pension premium
Other social security contributions
11.0
1.9
1.5
9.9
2.3
1.2
14.4
13.4
Staff numbers on a full-time basis at 31 December
– Working for operational units
– Working for group activities
92
83
81
80
175
liabilities
liabilities amount to € 82.1 (€ 46.9) million at the
end of 2001.
These liabilities are included in the amounts of
€ 329.2 (€ 391.6) million set out on page 93.
Delta Lloyd nv has given a guarantee of € 110
million at the balance sheet date, to cover the
liabilities from discounts granted to one of its
subsidiary companies. For this purpose, a lien
has been provided as collateral on a mortgage
portfolio of which Delta Lloyd nv has obtained
the lien for its part. The given guarantee will
reduce annually by € 12 million and will end
at 31 December 2010.
The company is severally liable as meant in
section 2 :403, subsection 1, paragraph f of the
Dutch Civil Code in connection with some
interest in insurance or banking participations.
161
Outline of major group companies
cgnu Plc. in London is the ultimate holder
general insurance
of the 100 % of the ordinary shares of Delta
Delta Lloyd Schadeverzekering nv (Amsterdam)
Lloyd nv.
ohr a Schadeverzekeringen nv (Arnhem)
Ennia Caribe Schade nv (80%) (Curaçao)
The major group companies in which Delta
B. Franco Mendes bv (Amsterdam)
Lloyd nv has an interest are (100 % unless
Delta Lloyd Schadeverzekering
otherwise stated):
Volmachtbedrijf bv (Amsterdam)
O.W. J. Schlencker Assuradeuren bv (Amsterdam)
holding
‘Praevenio’ Technische Verzekeringen bv
Delta Lloyd Verzekeringen bv (Amsterdam)
(Amsterdam)
nuts ohr a Beheer bv (Arnhem)
ohr a België nv (Sint-Pieters-Woluwe-Brussel)
Delta Lloyd Bankengroep nv (Amsterdam)
Delta Lloyd Deutschland ag (Wiesbaden)
care
Delta Lloyd België nv (Elsene-Brussel)
Delta Lloyd Zorgverzekering nv (The Hague)
Delta Lloyd Antillen nv (Curaçao)
ohr a Ziektekostenverzekeringen nv (Arnhem)
life
banking
Delta Lloyd Levensverzekering nv (Amsterdam)
Delta Lloyd Bank nv (Amsterdam)
ohr a Levensverzekeringen nv (Arnhem)
ohr a Bank nv (Arnhem)
Berlinische Lebensversicherung ag (99,52%)
Delta Lloyd Securities nv (Antwerp)
(Wiesbaden)
ohr a Hypotheken Fonds nv (Arnhem)
Delta Lloyd Levensherverzekerings-
Delta Lloyd Bank nv, België (Turnhout)
maatschappij bv (Amsterdam)
Bank Nagelmackers 1747 nv (99,6 %) (Brussel)
nv Nationaal Spaarfonds (The Hague)
Gries & Heissel Bankiers ag (89,13 %) (Berlin)
Ennia Caribe Leven nv (80%) (Curaçao)
Delta Lloyd Vastgoed Fonds nv (Amsterdam)
A list of subsidiaries as meant in section 2 : 379
Delta Lloyd Life nv (Elsene-Brussel)
and 2 : 414 of the Dutch Civil Code, will be
registered at the Registry of Business Names in
Amsterdam. In accordance with the provision
in section 2 : 403 paragraph 1 of the Dutch Civil
Code, not all requirements under Title 9 of
Book 2 of the Dutch Civil Code have been met
in respect of a number of group companies.
119
120
e x e c u t i v e b oa r d
N.W. Hoek, chairman
J. A.N. van Dijk, chairman
C.H. Tesselhoff
V. A.M. van der Burg, deputy chairman
P. J.W.G. Kok
C.P. J. Appeldoorn
A.A. Kullberg * (till 31 March 2002)
L.J. M. Berndsen
H.C. Broeksma
R. Harvey
R.H.P.W. Kottman
J. Oskam
A.B. Wyand
* non-statutory member
Other details
Appropriation of profits and dividend
s ta t u t o r y p r o v i s i o n a b o u t t h e
appropriation of profits
appropriation of profits
If the annual accounts are approved, the
profit of € 297.1 million will be allocated
Article 35 provides about the appropria-
to the general reserves.
tion of profits, if at all appropriate here,
that first of all a dividend paid out of
dividend
2.5% on the amount paid-up on the
In 2001, € 82.0 (€ 93.0) million dividend
issued preference shares a be added to
will be paid in accordance with article 35
the dividend reserve a (and if applicable,
paragraph 9 of the Articles of Association.
on the amount of the dividend reserve a).
This is € 23.71 (€ 27.04) per ordinary share
This percentage is increased annually by
of € 9.08 nominal, € 20.79 (€ 20.79) per
one percentage of the last applicable
preference share b of € 453.78 nominal
percentage with effect from the financial
and € 0.23 (€ 0.23) per preference share a
year 2000 up to and including 2009.
of € 9.08 nominal.
The profit which has not been added to
the dividend reserve a, is subject to
reservations as determined by the
122
Executive Board and approved by the
Supervisory Board.
From the profit after creation of such
reserves, a dividend is paid which equals
a percentage calculated on the nominal
amount of all issued preference shares b,
which percentage is related to the
average effective return on all Dutch
Government bonds with a weighted
remaining term of five years.
The remaining profit is paid out to the
holders of ordinary shares in proportion
to their ownership of ordinary shares.
Auditors’ report
introduction
opinion
We have audited the accompanying 2001
In our opinion, the financial statements
financial statements of Delta Lloyd nv
give a true and fair view of the financial
Amsterdam.
position of the company as of
These financial statements are the
31 December 2001 and of the result for
responsibility of the company’s
the year then ended in accordance with
management. Our responsibility is to
accounting principles generally accepted
express an opinion on these financial
in the Netherlands and comply with the
statements based on our audit.
financial reporting requirements
scope
Civil Code.
included in Part 9, Book 2 of the Dutch
We conducted our audit in accordance
with auditing standards generally
accepted in the Netherlands. Those
standards require that we plan and
perform the audit to obtain reasonable
assurance about whether the financial
statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the
amounts and disclosures in the financial
statements. An audit also includes
assessing the accounting principles
used and significant estimates made by
management, as well as evaluating the
overall financial statement presentation.
We believe that our audit provides a
reasonable basis for our opinion.
PricewaterhouseCoopers nv
123
Key figures 1992–2001
2001
1999 1
2000
Revenue
2,686
752
708
4,146
76
1,400
5,622
– Gross premium income Life assurance
– Gross premium income General insurance
– Gross premium income Care insurance
Total premium income
Other activities
Investment
income 4
2,283
1,941
774
579
685
139
3,742
2,659
130
39
1,796
1,842
5,668
4,540
313
250
-9
3
Result before taxation 5
291
19
23
3
31
367
–
367
– Life
– General insurance
– Care
– Banking and mediation activities
– Holding
Extraordinary result
9
12
30
350
292
–
–
350
292
- 65
- 52
285
240
2,354
2,878
2,360
34,239
30,992
28,753
Result after taxation
Group capital
Balance sheet total
–
22
- 68
299
Taxation
124
12
Figures per share of € 9.08 nominal (ordinary)
and € 453.78 and € 9.08 nominal (preference)
in euros 6
23.71
20.79
0.23
88.89
20.79
0.23
Dividend (ordinary)
Dividend (preference b € 453.78)
Dividend (preference a € 9.08)
Profit (ordinary)
Profit (preference b € 453.78)
Profit (preference a € 9.08)
27.04
29.46
20.79
20.79
0.23
0.23
84.95
71.56
20.79
20.79
0.23
0.23
5,639
5,636
Number of staff on a full-time basis
6,506
at 31 December
1
Including nuts ohra Beheer bv (from 1 October 1999)
4
Including indirect return for the years from 1997.
2
Including Berlinische Lebensversicherung ag
5
The result for Life assurance, General insurance and
3
The provisions in Chapter 15 of Title 9 of Book 2 of
Care concerns the result technical accounts, as well
as the share in the non-technical account.
the Dutch Civil Code have been observed with effect
from the financial year 1995. All effects have been
6
The issued and fully paid share capital was extended
incorporated in the annual figures with effect from
by 1,026,087 preference shares a. For reasons of
1994. Recalculation of 1993 and earlier years has not
comparison the profit for an ordinary share, has
been made for partical reasons.
been adjusted for 1998.
1998 2
1997 3
1996 3
1995 3
1994 3
1993
1992
1,705
1,067
909
821
904
882
897
529
490
492
473
443
401
364
–
–
–
–
–
–
–
2,234
1,557
1,401
1,294
1,347
1,283
1,261
28
13
11
8
8
8
6
1,425
1,067
938
903
800
758
696
3,687
2,637
2,350
2,205
2,155
2,049
1,963
223
187
165
138
127
109
96
8
34
27
22
17
-4
-4
–
–
–
–
–
–
–
8
6
6
4
2
3
2
42
56
25
17
8
15
19
281
283
223
181
154
123
113
–
-4
- 22
–
- 34
- 25
–
281
279
201
181
120
98
113
- 70
- 52
- 47
- 30
- 20
- 28
209
149
134
90
78
85
1,779
1,994
1,686
1,345
1,158
1,115
930
21,261
15,752
14,285
13,231
12,341
11,632
10,683
30.83
30.44
22.57
20.30
13.21
12.91
15.68
20.79
–
–
–
–
–
–
–
–
–
–
–
–
–
68.02
64.12
45.10
40.50
27.25
23.47
25.82
20.79
–
–
–
–
–
–
–
–
–
–
–
–
–
3,452
2,319
2,284
2,281
2,396
2,644
2,798
125
t i e n ja r e n o v e r z i c h t
- 61
220
Supervisory Board
Situation on 31 December 2001
J.A.N. van Dijk
L. J. M. Berndsen
V. A.M. van der Burg
Chairman
Position
Substitute chairman
Position
Retired (1-1-2002)
Position
Retired
Former position
Independent Legal Adviser in Zeist
Former position
Chairman Executive Board Koninklijke
Other positions
Member of the Executive Board of Sara Lee /
Nedlloyd nv (until 1-1-2002)
Nestlé Nederland bv
DE nv.
Other positions
Other functions
Senior Vice President Sara Lee Corporation
Koninklijke Nedlloyd nv
Vice-chairman of Het Utrechtse Archief
Other positions
Co-chairman p&o Nedlloyd Ltd
Chairman Koninklijk Nederlandsch
Koninklijke Wessanen nv
Corus Nederland bv
Genootschap voor Geslacht- en Wapenkunde
cv Verenigde Bloemenveilingen Aalsmeer
Martinair Holland nv
Member of the Supervisory Board of the
(president)
Océ nv
Centraal Bureau voor Genealogie at The Hague
Transavia Airlines
tbi Holdings bv
Permanent contributor to magazine Stichting &
Other functions
Other functions
Vereniging
Chairman of the Supervisory Board of Utrecht
Member of the Advisory Committee abn amro
Appointed
University
Holding nv
1973
Appointed
Member of the Board Stichting Preferente
Nationality
1993
Aandelen Koninklijke Nedschroef Holding nv
Dutch
Nationality
Appointed
Dutch
1999
R. Harvey
Nationality
Position
Dutch
Group Chief Executive cgnu Plc
C.P. J. Appeldoorn
Other functions
Position
126
Retired (1-5-2001)
H.C. Broeksma
Board member Association of British insurers
Former position
Position
Chairman British insurers ‘European
Adviser to the Executive Board of Wegener
Retired
Committee’
Arcade nv
Former position
Member of cbi’s Governing Council
Other positions
Member of the Group Management of
Member of the cbi’s President’s Committee
Computer Services Solutions Holding nv
Koninklijke Wessanen nv
Appointed
Terberg Leasing bv
Other positions
2000
Appointed
Ballast Nedam nv
Nationality
1999
Koninklijke Auping bv
British
Nationality
Blauwhoed Holding bv
Dutch
Moving People bv
Other functions
Stichting Rijksmuseum Fonds (chairman)
Stichting Het Parool (treasurer)
Curatorium Postdoctorale Controllersopleiding
U.v.A
Appointed
1993
Nationality
Dutch
R.H.P. W. Kottman
Position
Chairman Executive Board Ballast Nedam nv
Other positions
Hermeta Group bv
Stichting Exploitatie Nederlandse Staatsloterij
Other functions
Board member Stichting Administratiekantoor vnu
Member Raad van Verkeer en Waterstaat
Adviser Deloitte & Touche ics bv
Appointed
1999
Nationality
Dutch
J. Oskam
Position
Process Operator bij Uniqema (ici) Gouda
Other functions
Union Official f nv Bondgenoten /
coördinator fnv Zoetermeer
Appointed
1999
Nationality
127
Dutch
A.B. Wyand
Position
Group Executive Director cgnu Plc
Other non-executive positions
Subsidiaries of cgnu Plc in uk and overseas
Unicredito Italiano SpA
Grosvenor Estates Holdings Ltd
Société Générale
Appointed
1988
Nationality
British
text
The final editing of the 2001 annual
report is with Delta Lloyd nv. The text
has been produced by Peter van der
Tuin. Chan Blok wrote the text to the
illustrations.
design
The 2001 Delta Lloyd nv annual report
was designed at una (Amsterdam)
designers, by Hans Bockting, Will de
l’Ecluse and Sabine Reinhardt.
illustrations
The pictures in this annual report
come from: abc Press, Amsterdam;
Benelux Press, Voorburg; Fotostock,
Amsterdam; Getty Images, Amsterdam;
Imagebank, Amsterdam; Image store,
Amsterdam; Picture Box, Wormerveer;
Masterfile, Amsterdam and Bart
Sorgedrager, Amsterdam.
typesetting and
printing
On the directions of una all texts have
been composed in Swift, a letter by
Gerard Unger and in the Corporate S
by Kurt Weidemann, by Rosbeek bv,
printers in Nuth, who also did the
printing.
pa p e r
The covers of the annual report has
been made from 240 grams coated one
side Invercote G, from Proost & Brandt;
the inside from 80 grams Munken Elk
1.5, supplied by Grafisch Papier. The
paper for the picture section is 115
grams MaineClub van Grafisch Papier.
binding
Cutting and binding was carried out
by Hexspoor in Boxtel.

Compleet 2001 eng

Transcription

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