Business highlights

• Strong performance in Life new business, NAPI^[1] increased to € 432 million (2014: € 418 million), of which € 235 million originated from new defined contribution (DC) contracts
• Gross written premiums (GWP) in General Insurance was up 3% to € 1,353 million^[2], combined ratio (COR) better than target at 96.2%^[3] (2014: 94.5%³)
• Delta Lloyd ranked the number one pension insurer by independent financial advisors for fourth consecutive year, authorised agents (volmacht) consider our service levels best in class, and we ranked number three in the commercial General Insurance business segment
• Leon van Riet nominated to Executive Board
• Capital plan update: rights issue of € 650 million

Financial highlights

• Positive IFRS net result € 128 million (2014: € 361 million)
• Operational expenses in line with target of € 620 million at € 619 million
• Solvency II Standard Formula (SF) ratio: 131%; material uncertainties addressed including LAC DT (subject to rights issue)
• Shareholders' funds at € 2,569 million (2014: € 2,468 million), mainly due to equity offering in March

Hans van der Noordaa, Chairman of the Executive Board:

"Our core business delivered good results in 2015. Understandably a great deal of attention was focused on our capital position, yet our employees continued doing what we do best: serving our customers, working with our business partners, generating profitable new business and building a strong company. DELTA LLOYD is a company in transition, with a new management team, a revised strategy and working under a new regulatory regime. I am confident that our 'Closer to the customer' strategy, our capital enhancement plan and our focus on efficiency will help us to create value for our customers, shareholders and other stakeholders."

*Scores on a scale from 1-5 over 2014 and 2013; the 2015 scores will be published in June 2016

Strategic and business overview

On 30 November 2015, Delta Lloyd announced a rights issue to raise additional equity capital. The rights issue is part of a broader plan of management actions and capital measures, along with our revised strategy, designed to ensure Delta Lloyd is strongly positioned in the new era of Solvency II, which became effective on 1 January 2016. Today, Delta Lloyd published a separate press release with an update on the capital plan and the size of the rights issue. This press release is not available in the United States, Canada, Australia or Japan or any other jurisdictions in which the distribution or release would be unlawful.

Our strategic priorities are aimed at creating future value for our customers, shareholders and other stakeholders. Within the revised 'Closer to the customer' strategy we will leverage the strengths of our business and focus on capital efficiency and cost efficiencies. Our diversified life and general insurance portfolio, the accelerated shift to more fee based and capital light business and the continuous efforts to optimise our balance sheet for Solvency II enhance capital efficiency.
Based on customer insights and our track record as an insurer, we will focus on developing integrated solutions for individual customers in pension plans and we will expand our digital and data capabilities, to be able to proactively offer our clients relevant and timely advice. Furthermore, we will develop sustainable, future-ready products, which are aimed at prevention and take into account the new types of risks our clients are faced with.

Leon van Riet appointed to the Executive Board

Today, Delta Lloyd's Supervisory Board announced the planned appointment of Leon van Riet (51) to the Executive Board. Leon van Riet will succeed Onno Verstegen, who resigned as member of the Executive Board on 1 February 2016. The Dutch Central Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) have approved the planned appointment of Leon van Riet.

Customers

Delta Lloyd has built a successful business across Life Insurance, General Insurance and Asset Management, using a strong multi-channel, multi-label platform, with well-known and respected brands such as Delta Lloyd, BeFrank, OHRA and ABN AMRO Insurance. Our 4.2 million customers give us consistently high customer satisfaction scores, as do our business partners. The satisfaction, particularly in regards to levels of service of the intermediaries that we work with is a key driver for the commercial business lines in the Netherlands. In our pension business lines, Delta Lloyd achieved the highest intermediary satisfaction in the market for the fourth consecutive year in 2015: 7.6 (2014: 7.6)^[4] , BeFrank is included in this score.

In the commercial General Insurance business segment, Delta Lloyd ranked third in terms of intermediary satisfaction and its overall intermediary satisfaction improved to 7.3 (2014: 7.0) in 2015. Authorised agents consider Delta Lloyd's service levels to be best in class in the Netherlands. On the Customer Centric Dashboard issued by the Dutch Financial Markets Authority (Autoriteit Financiële Markten/AFM), we scored an average 3.5 out of 5 in 2014, above the 3.4 sector average.

In order to strengthen our distribution capabilities, the OHRA brand will be transformed in a purely digital, non-life insurer. Online we will expand our existing single portal for sales and services for commercial and individual customers and brokers. To gain a better understanding of our customers' needs and requirements, we created the new business unit Customer, Brand & Digital, which stems from our 'Closer to the customer' strategy. This will allow us to respond faster, more efficiently and more actively to the needs of customers and to offer them the right solutions.

Sustainability

Delta Lloyd is committed to make a positive sustainable impact with our core business activities, creating value both for society and our business. In 2015, we set a new sustainability strategy which consists of three pillars: responsible insurance, responsible investing and the Delta Lloyd Foundation. For example, we manage the Triodos mandate and we introduced a wind and tidal energy insurance product. In September 2015, Delta Lloyd was again included in the Dow Jones Sustainability Index (DJSI) World and in the DJSI Europe. Delta Lloyd belongs to the industry best regarding customer centricity and integrity. Delta Lloyd's sustainability report is to be published on 23 March 2016.