Premium income up 12% to € 7.5 billion

Capital position remains solid: solvency 190%

Net result € -153 million

Delta Lloyd Group highlights in 2008
• Significant increase in premium income, especially from large pension contracts
• Negative net result of € 153 million
• Positive operating result of € 142 million
• Solvency ratio: 190%
• Total return on investment portfolio: -0,9%
• Successful ABN AMRO Insurance joint venture continued
• Sound risk management gives Delta Lloyd Group and its customers assurance in the current crisis

Executive Board chairman Niek Hoek of Delta Lloyd Group: ‘Delta Lloyd Group ended a difficult 2008 with a net loss of € 153 million, including a gross adverse impact of € 158 million for the compensation agreed with consumer organisations on individual unit-linked insurance policies. We are satisfied that the negative effects could be minimised through active risk management. Along with our commercial strength and solid financial position, this offers a good starting point for 2009.’

Delta Lloyd Group’s commercial performance continued to be strong in 2008. Gross premium income rose by 12% to € 7.5 billion, almost entirely driven by organic growth. All sectors contributed to this: Life (+12%), General (+10%) and Health (+15%). Nevertheless, the increase in large group pension contracts was remarkable. More and more of large companies are choosing the pension assurance that Delta Lloyd Group can offer its customers.

In 2008, Delta Lloyd Group’s profitability was severely dampened by the effects of the credit crisis. The operating result was 68% lower at € 142 million. Due to the fair value measurement of investments and the resulting compulsory write-downs of unrealised market value losses on the investment portfolio, the IFRS-based net result before tax was € -153 million. The falling equity markets, in particular, led to impairments on equities, bonds and loans totalling € 976 million, while the widening credit spreads had a negative effect of € 1,119 million on the fixed income portfolio. Against this, protection of the investment portfolio through equity hedges and swaptions on fixed income securities had a positive effect of € 1,252 million on the result.

The maximisation of costs agreed with consumer organisations for individual unit-linked insurance policies will cost Delta Lloyd € 410 million, including a maximum of € 30 million to be contributed to a special fund for distressed customers. The compensation depressed the result by € 158 million in the year under review.

Active risk management and a transparent investment policy ensured that Delta Lloyd Group’s solvency remained strong at 190% at the end of 2008. Standard & Poor’s reaffirmed Delta Lloyd’s AA- (stable outlook) at the end of October.

Delta Lloyd Group has presented its balance sheet at market value since 2005. This makes the Group’s investments and insurance liabilities completely transparent. Risk management proved to be effective: the risk from strong falls in the value of equities and in long-term interest rates was largely limited, especially in the second half of 2008. Partly in consequence of this, the return on investments held for the Group’s own account was -0,9% in 2008. A very good performance given current market conditions.

Expenses totalled € 1.2 billion in 2008. The Executive Board believes this is too high and, accordingly, measures have been announced to structurally reduce costs to below € 1 billion. The initiatives include the reduced hiring of external staff, a vacancy freeze, the minimisation of projects and the complete waiver of performance-related reward for the Executive Board and management for 2008.

The fall in the carrying amount of investments, the increase in liabilities caused by lower interest rates and a dividend payment of € 226 million had a major effect on the Group’s equity. This fell considerably during the year, by 35% to € 3.3 billion (2007: € 5.1 billion).

Delta Lloyd Group’s strategic position was strengthened by the acquisition of Swiss Life Belgium. With this acquisition, the Group doubled its share of the Belgian life market. The continuation of the successful ABN AMRO Insurance joint venture provides an excellent basis for the Group’s further growth in bank distribution.