Delta Lloyd: lower costs boosted 2016 earnings.

(CercleFinance.com) - Dutch insurer Delta Lloyd on Thursday reported 2016 earnings growth, showing that its solvency has risen sharply year-on-year.


The net IFRS result reached 231 million euros last year, versus 128 million euros in 2015.

Delta Lloyd said it managed to improve its business performance and cut costs in a "highly competitive, mature market."

Even so, the company was disappointed by its Solvency II life value new business of only 27 million euros and its combined ratio of 105.4%, compared to 96.2% in 2015.

However, the group reported a Solvency II ratio - a closely watched measure of financial strength - of 143% at the end of the year, up from 131% the year before.

As a reminder, the Solvency II ratio reached 156% at the end of Q3.

Delta Lloyd has decided not to pay a final dividend for 2016, in view of NN Group's merger offer.

In this respect, Delta Lloyd says it plans to obtain the shareholder, regulatory and antitrust approvals required to complete the transaction in the second quarter.

Delta Lloyd shares were up less than 0.1% at 5.34 euros on Euronext Amsterdam in early trading this morning.

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