Delta Lloyd NV, the Dutch insurer under pressure to bolster capital, climbed as much as 6.6 percent after Rabobank pitched the idea of a purchase by NN Group NV.
“There is a scenario possible by which NN Group would acquire Delta Lloyd at an attractive price,” Cor Kluis, an Utrecht, Netherlands-based analyst at Rabobank Groep, said in a note Tuesday. “We believe this could enhance the NN Group free cash flow per share by double digits.”
The insurer was trading 5.2 percent higher at 7.35 euros at 1:30 p.m. in Amsterdam on Tuesday. NN was down 0.4 percent.
Delta Lloyd has lost about 60 percent of its market value this year and a first-half loss of 533 million euros ($567 million) raised the question of a capital increase. The European Union will introduce stricter capital requirements in January under rules known as Solvency II.
The Amsterdam-based insurer announced the appointment Cliff Abrahams as chief financial officer last week. The previous CFO resigned in August after a Dutch court upheld a central bank decision to fine the insurer for trading on confidential information.
- Update: Delta Lloyd’s $588 Million First Half Loss Raises Capital Concerns
- Delta Lloyd’s CFO Resigns After Court Upholds Fine for Information Abuse
- Delta Lloyd Ordered to Dismiss CFO, Fined by Dutch Regulator
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