The central bank (DNB) told the insurer to fire Emiel Roozen by January 2016, Delta Lloyd said in a statement, after the insurer allegedly used confidential information to make a rate change.

Delta Lloyd said Roozen acted within company guidelines and would fight the DNB decision in court. He has the support of the entire board and will stay in his role during legal proceedings.

Delta Lloyd shares were down 5.4 percent in early trading in Amsterdam at 17.80 euros ($22).

The DNB had been investigating the lowering of Delta Lloyd's interest rate risk hedges in July 2012, days before the central bank lowered the interest rate used when calculating insurance liabilities with terms exceeding 20 years.

DNB found that the decision to reduce its interest rate risk hedges "was conducted without due care," a statement said. "Delta Lloyd should not have reduced its hedges at that time and that this was inconsistent with its risk policy."

The central bank claimed that Delta Lloyd acted in order to gain an advantage from confidential information, Delta Lloyd said.

Delta Lloyd carried out its own review, hiring external legal and accountancy expertise, and concluded that the Roozen's actions "were not in contravention of the law or regulations."

"It is regrettable that we have to inform you of a difference of opinion with DNB," supervisory board chairman Jean Frijns said.

"We cannot reconcile DNB's view with the facts as established by us. We have no doubt that Delta Lloyd acted at all times in the interests of all stakeholders."

Delta Lloyd was ordered to pay 22.8 million euros, including 21.6 million euros it allegedly made in financial gains.

DNB confirmed imposing the fine and ordering Roozen's dismissal, but said in a statement it could not discuss the details of the case due to legal restrictions.

A hearing on the fine was expected to be handled by a court in Rotterdam in January, with proceedings dealing with the dismissal expected later in 2015, a company spokeswoman said.

(Reporting by Anthony Deutsch, editing by Louise Heavens)

By Anthony Deutsch