Analyst Visit To Delta Lloyd
CGNU PLC
11 December 2000
Analyst visit to CGNU's Netherlands subsidiary
CGNU hosted an analyst visit to the Netherlands for presentations on its
Delta Lloyd Nuts Ohra (DLNO) businesses on Friday 8 December 2000.
The presentations provided an overview of the Dutch insurance market,
DLNO's market position and strategy, and reviewed progress of the merger
with Nuts Ohra.
Key points from the presentations:-
* Delta Lloyd and Nuts Ohra merged in 1999 creating the 4th largest insurer
in the Netherlands with £1.3 billion premium income and £25 billion in assets
under management. It has a particularly strong position in the pensions,
life and health markets, which represent some 75% of its total premiums and
over 90% of profits. It is number one in the market for investment
performance and has a strong intermediary and direct distribution
capability, ranking 3rd and 2nd respectively in these channels.
* The integration of the businesses following the merger is progressing well.
Cost savings at the end of September were £29m, of which £23m were annual
savings. These included £7m of annual savings from the German life business,
Berlinische Lebens, which is managed by DLNO. Further savings will be targeted
through the integration of the general insurance and asset management back
offices and combining the health businesses.
* Delta Lloyd Nuts Ohra is one of the leading fund managers in the
Netherlands and Ohra's award winning fund performance has led to substantial
growth this year in assets under management. Delta Lloyd Nuts Ohra achieved
retail investment sales of £813m in the nine months to 30 September 2000
(proforma nine months 1999 £163m). These sales will be included in the
Group's new business figures for the full year.
* Changes in legislation to reduce tax incentives for life products will
affect sales in the market. Pensions are unaffected and become relatively
more attractive along with mutual fund sales. Both are key strengths of DLNO.
* Health results have returned to profit following rating and actions taken
to improve the quality of the portfolio acquired through the Nuts Ohra merger.
* Rating and underwriting actions are in place to improve general insurance
results. Motor results have shown an improving trend this year and domestic
results are achieving underwriting profits. Larger commercial risks will be
exited including international and Bourse business.
All of the presentations are available in the investor centre on the group's
internet site: www.cgnu-group.com.
There were no discussions of current trading or profit forecasts made at the
presentations.
Contacts
Investors / analysts
Steve Riley, Investor Relations Director +44 (0) 207 662 8115
Media (UK)
Alex Child-Villiers, Financial Dynamics +44 (0) 207 269 7101
Media ( Netherlands)
Hans Koeleman, DLNO Communications Director +31 20 594 44 88
presentations/dlno rns dec 2000
Latest directors dealings
- 3 hours ago Savannah Energy
- 4 hours ago Buccaneer Energy PLC
- 4 hours ago Savannah Energy
- 5 hours ago Carclo
- 5 hours ago Schroder Japan Growth Fund