Message from the chairman

Transition, adapting and strengthening characterised 2016. During the year, we successfully executed a range of actions to strengthen our capital and cash positions.

About Delta Lloyd

Delta Lloyd provides life and general insurance, pensions, asset management and banking products and services to 4.2 million customers in the Netherlands and Belgium. We distribute these through a diverse range of channels.

Our brands

In the Netherlands, we sell life and general insurance under the Delta Lloyd, OHRA and ABN AMRO labels, while BeFrank is a premium pension institution (PPI) that provides innovative group pensions at relatively low cost.

Our strategy

Delta Lloyd creates value (see our value creation model) by providing reliable and highly valued financial services, with a focus on insurance. This is based on understanding what customers want, meeting their needs and delivering excellent service.

Our environment

The environment we work and live in, influences us as people and as a company. Delta Lloyd pays close attention to its environment and the different longer term trends that impact our business.

Value creation model

As a company, we are part of a broader context. Our business is impacted by global trends and developments (see section Our environment). In turn, Delta Lloyd affects the lives of different people in different ways.

Delta Lloyd’s contribution to the UN SDGs

Delta Lloyd wants to create long term value with our core activities. This means we look at relevant societal themes for people and the planet, and determine how we can best use the strengths of our company to contribute. This is our norm.

Stakeholders and materiality

Delta Lloyd values its relations with stakeholders, who keep us updated about their needs and expectations. This enables us to follow the right course for all parties involved.

Materiality assessment

Material matters are those topics that are most important to Delta Lloyd and to our stakeholders, based on their impact and the value they create.

Reporting principles – About this report

This integrated report was published on 22 March 2017.

Executive Board

On 1 January 2017*, our Executive Board members were:

Supervisory Board

On 1 January 2017, our Supervisory Board members were:

Supervisory Board committees

Jan Haars, chairman Rob Ruijter Fieke van der Lecq John Lister Eric Fischer

Report of the Supervisory Board

In 2016, the Supervisory Board continued to support and challenge the Executive Board in stabilising and transforming the company.

Role of the Supervisory Board

The Supervisory Board oversees and advises the Executive Board in setting and fulfilling the company’s objectives, strategies and policies.


The Supervisory Board and Executive Board discussed the strategy of Delta Lloyd at their annual off-site meeting in June 2016.

Key issues in 2016

In 2016, the Supervisory Board devoted particular attention to the following subjects.

Other issues

Delta Lloyd wants to be an inclusive organisation with a workforce which reflects society at large. It actively seeks opportunities to enhance gender diversity at all management levels.

Supervisory Board composition

At the annual General Meeting of Shareholders on 19 May 2016, John Lister and Paul Nijhof were appointed as new members of the Supervisory Board.

Supervisory Board meetings

The Supervisory Board met around 30 times in 2016. Five of these were regular meetings.

Supervisory Board committees

The Supervisory Board organises its tasks across four committees: the Audit Committee, Risk Committee, Remuneration Committee and Nomination Committee.

Financial statements and profit appropriation

In accordance with the provisions of Section 2:101(3) of the Dutch Civil Code, we submit the financial statements drawn up by the Executive Board to the General Meeting of Shareholders for adoption.

A word of thanks

We wish to thank our shareholders for their continuing support in a challenging year.

Remuneration report 2016

This report sets out Delta Lloyd’s remuneration policy for members of the Executive Board and Supervisory Board and the remuneration paid in 2016.

Remuneration policy

The primary objective of the remuneration policy is to enable Delta Lloyd to recruit, retain and motivate employees and to stimulate excellent performance.

Governance of the remuneration policy

The Executive Board is responsible for determining the company-wide remuneration policy, except for its own remuneration, which is proposed by the Supervisory Board and approved by shareholders at the General Meeting.

Remuneration received by Executive Board members

The base salary for the chairman is set at € 950,000 and his variable remuneration grant is capped at 20% of the base salary.

Remuneration of the Supervisory Board

The remuneration policy for the Supervisory Board was adopted by the General Meeting of Shareholders in October 2009. The policy is in line with a peer group benchmark carried out by an independent remuneration expert.

Corporate governance statement

This chapter – together with the report of the Supervisory Board, the description of the internal risk management and control systems and the contents of Delta Lloyd’s corporate website – constitutes the corporate governance statement within the

EU directive on takeover bids

Pursuant to the EU directive on takeover bids (Decision of 5 April 2006 implementing Article 10 of Directive 2004/25/EC of the European Parliament and the European Council of 21 April 2004 on takeover bids), further requirements have been set

In control statement

The Executive Board is responsible for designing and maintaining an adequate system for internal control over financial reporting (IFRS).

Carbon Footprint

In 2016, we reduced our carbon footprint by more than 10%, beating the 3% target we set for the year.

Supply chain management

Delta Lloyd is taking more responsibility to integrate sound environmental, social and governance practices into its supply chain and wants to encourage its suppliers to do the same.


As an insurance company Delta Lloyd can play a meaningful role in society. Through our activities we can positively influence people’s financial well-being.


Delta Lloyd’s tax strategy is based on the principle ‘tax follows the business’. This implies that we recognise taxes in the countries where the operations take place and at the moment that the activities occur and revenues are recognised.

Life Insurance

Our Life Insurance segment provides pension products and administration services for group customers and traditional and unit-linked life insurance, savings products and financial planning for individuals. Life Insurance had a mixed year in 2016.

General Insurance

General Insurance delivered a weak financial performance in what was a tough year. Part of this was due to the many damage claims after exceptional weather that hit the south of the Netherlands.

Asset Management

It was a transitional year for Asset Management, which manages and invests the assets of Delta Lloyd and its policyholders and manages institutional and retail customers’ investments.


Delta Lloyd Bank is active in the Dutch mortgage and savings markets with a focus on products related to wealth accumulation. Within Delta Lloyd, the bank enables other group entities by servicing their mortgage portfolios.

Investor relations and share developments

With shareholders all over the world, Delta Lloyd aims to provide its investors with clear, transparent, accurate and timely information so they can make well-considered decisions.

Human capital

Our employees play a key role in realising our strategy. As such, we share a responsibility with them to ensure their skills and abilities remain relevant now and to other roles in the future.

Risk management

Our risk management approach serves as a countervailing power to safeguard the continuity of Delta Lloyd through responsible growth, a stable solvency ratio and sustainable products and processes.

Risk management philosophy

Our risk management policies are designed to protect Delta Lloyd against events that may jeopardise our ability to achieve sustainable results, the required minimum solvency level, or our strategic objectives. Our mission is to manage uncertainty.

Risk governance

In May 2016, Delta Lloyd implemented its new risk management organisation.

Risk management responsibilities

The Executive Board is responsible for decisions relating to Delta Lloyd’s risk profile and determines the company’s overall risk appetite at least once a year. The Executive Board also assesses and approves the GRAS.

Risk processes and systems

Delta Lloyd’s risk management framework is based on the enterprise risk management (ERM) model of the Committee of Sponsoring Organisations of the Treadway Commission (COSO). It meets Solvency II requirements.

Risk culture

The Executive Board and directors determine Delta Lloyd’s risk culture and appetite. They set the example for the rest of the organisation. It is imperative they are approachable on risk management issues and open to discussions about improvement.

Risk taxonomy

Delta Lloyd’s risk management process has developed into an integrated enterprise risk management process and fits into our preparation for Solvency II. It consists of a risk management cycle where each action is a stepping stone for the next.

Top five risks

In 2016, we assessed the risk profile each quarter at both group and business unit level.


Compliance made major strides in 2016 to implement effective and strong governance at Delta Lloyd. This included setting up a Compliance Board, the Laws and Legislation committee and embedding regular meetings into the governance structure.