Outlook for 2013
Delta Lloyd is well placed for the future. We have a sound business and a strong foundation that aims to protect us against further adverse economic developments and positions us to take advantage of a market upturn when this occurs. This will enable us to grow our position in life insurance, pensions general insurance and assets under management, depending on market developments.
We have taken steps to make our business more resilient given the current volatile environment. We have simplified our organisation, reduced costs, divested non-performing activities and strengthened our solvency. We have retained our stringent cost targets for 2013 and 2014 and remain committed to increasing both our operating result and dividend by at least 3% annually.
Our investment portfolio and risk management are structured to benefit from a recovery in the financial markets and the economy as a whole. Even if the macroeconomic environment remains unchanged, Delta Lloyd is set to perform well in 2013.
Delta Lloyd values its transparent marked-to-market valuation. It reflects our actual financial position and allows us to take swift and direct action when needed to counter economic turbulence. Through this combination of prudence and transparency, we are able to provide certainty to our growing customer base, our employees and our shareholders.
We expect the economic environment to remain tough in 2013 and we remain subject to external influences, such as policy decisions around pension reform and the Dutch mortgage market. As such, we are monitoring developments closely and remain cautious about providing new mortgages. We are concentrating on low loans to values and mortgages with government guarantees. We also continue to explore strategic options for our German activities in run off.
As a sustainable financial service provider, our customers’ interests come first. We aim to increase customer satisfaction further in 2013 and to retain the customer-focused insurance quality label in 2013 and beyond. We continue to aim for inclusion in the Dow Jones Sustainability Index and maintain our commitment to environmental, social and governance principles in our day-to-day work, as well as promoting financial education in our core markets.
In January 2013, we announced a cross-listing of our shares in Belgium, which underlines the importance we place on this second home market, and reinforces our presence here. It also diversifies our shareholder base and creates broader access to capital markets, without significantly increasing our reporting costs.
Niek Hoek, chairman