Delta Lloyd NV, the Dutch insurer that last month completed a rights offer to shore up its capital buffers, said its ability to absorb losses weakened in the first quarter.
The Solvency II ratio, a measure of an insurer’s strength under rules introduced in Europe this year, declined to 127 percent from 131 percent at the end of last year, the company said in a statement on Wednesday. The insurer has a pro-forma ratio of 154 percent after completing a rights issue, within its target range of 140 percent to 180 percent, Delta Lloyd said.
“The sharp fall in interest rates in the quarter adversely impacted the capital position,” Chief Executive Officer Hans van der Noordaa said in the statement. “We are focused on further unlocking the value of the franchise by improving commercial and operational performance.”
Delta Lloyd completed a 650 million euros ($733 million) rights issue to improve the company’s capital levels after the European Union introduced stricter capital requirements for insurers in January. Gross written premiums in general insurance increased 7 percent to 465 million euros in the first three months. Shareholders’ funds rose by 236 million euros to 2.8 billion euros as credit spreads improved.
- Delta Lloyd Says It Didn’t Offer Incentives to Get Support for $738M Rights Offer
- Update: Delta Lloyd Shareholders Approve Contested Plan to Raise $720M
- Delta Lloyd Remains on CreditWatch Negative, Pending EGM & Rights Issue: S&P
- Update: Delta Lloyd Rejects Demand from Top Shareholder to Delay Rights Offer
- Largest Delta Lloyd Shareholder, Highfields, Will Vote Against Rights Offer
- Delta Lloyd Cuts Size of Rights Offer to $715 Million to Placate Investors
- Dutch Insurer Delta Lloyd Still Faces Solvency II Uncertainties; Rights Issue Ahead
- Delta Lloyd Plans to Raise $1.06 Billion in Rights Offer to Improve Capital Position
- Delta Lloyd Uncertainties Persist Amid Concern It May Need to Plug Capital Gap
- 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
Was this article valuable?
Here are more articles you may enjoy.