DELTA LLOYD : commercial and operational performance shows robust progress

Strategic and business highlights

• Increase in Life new business, NAPI^{[1]:
  #_edn1} € 342 million (9M 2014: € 324 million), of which € 182 million (9M 2014: € 135 million) originated from new defined contribution (DC) contracts
• Gross written premiums (GWP) General Insurance up 2% to € 1,068 million^{[2]:
  #_edn2}, combined ratio (COR) remained strong at 96.6%^{[3]:
  #_edn3} (9M 2014: 95.8%³)
• Update on capital and transition to Solvency II on 2 December 2015

Financial highlights

• IGD group solvency ratio of 181%^{[4]:
  #_edn4} at end September (year-end 2014: 183%), mainly impacted by assumptions recalibration
• Shareholders' funds -2% at € 2,422 million at end September (year-end 2014: € 2,468 million)

Hans van der Noordaa, chairman of the Executive Board:

"The first nine months of the year have shown a continued strong commercial and operational performance. Our capital position and risk management remain our main priorities. We have spent the last several months on a detailed analysis of our capital position. We will update you on capital and transition to Solvency II at our Investor Day on 2 December 2015."

Strategic and business overview

We made strong progress in executing actions aimed at creating a sound basis for our future:

• We expect to announce our new CFO and member of the Executive Board shortly
• We are gearing the organisation towards a more agile and more customer focused orientation
• We completed the sale of our non-core activities Delta Lloyd Bank Belgium and Delta Lloyd Deutschland
• The shift from defined benefit (DB) to defined contribution (DC) has accelerated
• We maintain a strong focus on the profitability of our new business

Customers

In the third quarter, we have taken new steps to meet our customers' and business partners' demand for access to products and services at any time and using any device. Later this year, we will launch the 'my Delta Lloyd' website, where clients and advisors have access to information regarding their policies and various self-service options. We launched a simplified application process for online retail insurance products. For OHRA customers we implemented Touch ID for the OHRA app; customers can log on to the OHRA app just using their finger print. Customer satisfaction scores for Delta Lloyd and OHRA (both private and commercial clients) over 2015 were higher than in 2014, and Net Promoter Scores for all OHRA and Delta Lloyd commercial businesses were up.

Cost savings on track

In the first nine months of 2015, operational expenses amounted to € 465 million (9M 2014: € 468 million), including the impact of higher pension service costs. We have an ongoing commitment to drive cost efficiencies.

Important information

• This interim management statement contains figures for the first nine months of 2015 for Delta Lloyd NV ('Delta Lloyd'), inclusive of Delta Lloyd Levensverzekering, Delta Lloyd Schadeverzekering, ABN AMRO Verzekeringen, Delta Lloyd Life Belgium, Delta Lloyd Asset Management and Delta Lloyd Bank Netherlands.
• Delta Lloyd Deutschland and Delta Lloyd Bank Belgium have been sold; the figures of these entities are excluded from the operational expenses and commercial KPI's (a.o. Gross Written Premiums, Assets under Management and New Business). However, the entities are not excluded from the IFRS-based metrics (Delta Lloyd Deutschland is included for the first nine months and Delta Lloyd Bank Belgium for the first seven months).
• Certain statements contained in this press release that are not historical facts are "forward-looking statements". Forward-looking statements are typically identified by the use of forward looking terminology such as "believes", "expects", "may", "will", "could", "should", "intends", "estimates", "plans", "assumes", "anticipates", "annualised", "goal", "target" or "aim" or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy that involve risk and uncertainties. The forward-looking statements in this press release are based on management's beliefs and projections and on information currently available to them. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Delta Lloyd's control and all of which are based on management's current beliefs and expectations about future events.
• Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. Delta Lloyd undertakes no duty to and will not update any of the forward-looking statements in light of new information or future events, except to the extent required by applicable law. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement as a result of risks and uncertainties facing Delta Lloyd and its subsidiaries. Such risks, uncertainties and other important factors include, among others: (i) changes in the financial markets and general economic conditions, (ii) changes in competition from local, national and international companies, new entrants in the market and self-insurance and changes to the competitive landscape in which Delta Lloyd operates, (iii) the adoption of new, or changes to existing, laws and regulations including Solvency II, (iv) catastrophes and terrorist-related events, (v) default by third parties owing money, securities or other assets on their financial obligations, (vi) equity market losses, (vii) long- and/or short-term interest rate volatility, (viii) illiquidity of certain investment assets, (ix) flaws in underwriting assumptions, pricing and/or claims reserves, (x) the termination of or changes to relationships with principal intermediaries or partnerships, (xi) the unavailability and unaffordability of reinsurance, (xii) flaws in Delta Lloyd's underwriting, operating controls or IT systems, or a failure to prevent fraud, (xiii) a downgrade (or potential downgrade) of Delta Lloyd's credit ratings, and (xiv) the outcome of pending, threatened or future litigation or investigations, or other factors referred to in this press release.
• Should one or more of these risks or uncertainties materialise, or should any underlying assumptions prove to be incorrect, Delta Lloyd's actual financial condition or results of operations could differ materially from those described herein as anticipated, believed, estimated or expected.
• Please see the Annual Report for the year-ended 31 December 2014 for a description of certain important factors, risks and uncertainties that may affect Delta Lloyd's businesses.