Gross written premium Delta Lloyd Group 2009
’Banksparen’ rise sixfold to € 297 million
Delta Lloyd Group showed good commercial results in 2009, with strong performance in ’banksparen’, doubling in market share in mortgages and a net inflow of € 320 million in Delta Lloyd retail investment funds from third-party distribution. Gross written premium of € 5,065 million was lower than the record year 2008 (€ 5,911 million). The main reason was the lower volume of single-premium group pension contracts written as a consequence of the financial crisis.
| Gross Written Premium | Year | Year |
| 2009 | 2008 | |
| (in millions of euros) | ||
| Life | 3,642 | 4,533 |
| General Insurance | 1,423 | 1,378 |
| Total | 5,065 | 5,911 |
Life
Life gross written premium was affected by slow activity in the market in the first half of 2009, but a slight recovery in the market was noted in the last six months of the year. Delta Lloyd Group continued to focus on profitable growth in new group pension contracts. In addition, regulations limited the scope for underfunded Dutch pension funds to transfer their pension obligations to insurers. Delta Lloyd concluded two large group contracts that made positive volume contributions.
Delta Lloyd Group wrote total new Life business (PVNBP) of € 4,050 million, 21% lower than in 2008 (€ 5,121 million). The Present Value of New Business Premiums (PVNBP) is equal to the single premiums received plus the present value of new regular premiums, calculated on the basis of the same principles used to calculate new business in the MCEV, (see appendix for more details on premium volumes).
The shift away from unit-linked insurance to more traditional forms of life insurance and ’banksparen*’ is visible in the life segment. Delta Lloyd Group occupies a strong position in this evolving market.
* ‘The Dutch Saving Bank Act (Wet banksparen, 2008) allows banks to offer ‘banksparen’, with saving products that enjoy the same tax advantages as a life insurance policy. ‘Banksparen’ is used for pension accumulation, mortgage loan repayment and home mortgage savings accounts.
Delta Lloyd Group wrote total new Life business (PVNBP) of € 4,050 million, 21% lower than in 2008 (€ 5,121 million). The Present Value of New Business Premiums (PVNBP) is equal to the single premiums received plus the present value of new regular premiums, calculated on the basis of the same principles used to calculate new business in the MCEV, (see appendix for more details on premium volumes).
The shift away from unit-linked insurance to more traditional forms of life insurance and ’banksparen*’ is visible in the life segment. Delta Lloyd Group occupies a strong position in this evolving market.
* ‘The Dutch Saving Bank Act (Wet banksparen, 2008) allows banks to offer ‘banksparen’, with saving products that enjoy the same tax advantages as a life insurance policy. ‘Banksparen’ is used for pension accumulation, mortgage loan repayment and home mortgage savings accounts.
General Insurance
Delta Lloyd Group showed stable performance in challenging market conditions with intense competition. Gross written premium totalled € 1,423 million in 2009, a 3% increase from 2008.
Bank and investments
In the Netherlands and Belgium mortgage origination advanced by 30% to € 2,402 million in 2009 (2008: € 1,848 million). In a contracting mortgage market (fewer properties were sold) this translated into an expansion of Delta Lloyd Group’s market share. In the Netherlands the Delta Lloyd Group market share almost doubled, jumping from 1.3% in 2008 to 2.5% in 2009.
In 2008, Delta Lloyd Group became the first provider to launch a tax-efficient ‘banksparen’ product as an alternative for unit-linked life insurance products. Delta Lloyd Group was thus able to build a strong position in the market for ’banksparen’. In 2009 ‘banksparen’ rose sixfold to a total of € 297 million (2008: € 48 million).
Net new assets flowing into Delta Lloyd retail investment funds from third-party distribution increased to € 320 million, compared to an outflow of € 410 million in 2008. However, reduced premium income from large pension contracts ultimately led to a lower total net inflow into the Delta Lloyd investment funds of € 449 million compared to € 581 million in 2008.
In 2008, Delta Lloyd Group became the first provider to launch a tax-efficient ‘banksparen’ product as an alternative for unit-linked life insurance products. Delta Lloyd Group was thus able to build a strong position in the market for ’banksparen’. In 2009 ‘banksparen’ rose sixfold to a total of € 297 million (2008: € 48 million).
Net new assets flowing into Delta Lloyd retail investment funds from third-party distribution increased to € 320 million, compared to an outflow of € 410 million in 2008. However, reduced premium income from large pension contracts ultimately led to a lower total net inflow into the Delta Lloyd investment funds of € 449 million compared to € 581 million in 2008.
