Financial statements

The items in the financial statements of the group companies are valued in compliance with the currency of the economic environment in which the group companies carry out the majority of their activities (the functional currency). The euro is the functional and performance currency of DELA Group. 

Transactions in foreign currencies during the reporting period are processed in the financial statements at the exchange rate on the transaction date. Assets and liabilities in foreign currency that are valued at their current value are converted at the exchange rate on the balance sheet date. Exchange rate differences that occur in the settlement of monetary items are processed in the income statement in the period in which they occur.

Assets valued in foreign currency at the historical cost are converted at the exchange rate (or the approximate exchange rate) on the transaction date. 

Real estate is valued at the fair value on the balance sheet date. Value changes (if cumulatively positive) are processed in the revaluation reserve via the income statement, taking deferred tax into account. Section 5.2 provides further details on the valuation method.

Participations in which a significant influence applies are valued in accordance with the net asset value method. A legal presumption of significant influence occurs when 20 percent or more of the votes can be cast.

The net asset value method is calculated in accordance with the principles that apply to this financial statements; for participations for which insufficient data is available to change these principles, the valuation principles of the relevant participation are applied.

A participation that is valued as negative in accordance with the net asset value method is valued at nil. If and insofar as DELA Group is partially or fully responsible for the debts of the participation, a provision will be made. The initial valuation of participations is based on fair value of the identifiable assets and liabilities at the time of acquisition. From then on, the principles related to this financial statements apply, based on the value at initial valuation.

Participations without significant influence are valued at the historival cost. If a sustainable devaluation applies, valuation is at this lower value. Devaluation is charged to the income statement.

The liabilities from participations included under financial fixed assets are stated at the fair value of the provided amount, which is normally the nominal value, minus any provisions deemed necessary.

Shares and convertible bonds are stated at fair value based on official listings in the financial markets. Value changes are accounted for directly in the income statement.

Bonds are stated at fair value based on official listings in the financial markets.

DELA Group has forward exchange contracts and an option for extra shares in a participation; both are stated at fair value. In addition, DELA Group has a convertible loan. This involves a compound financial instrument which comprises a loan and an embedded derivative, namely the option to convert the loan into shares. This embedded derivative is separately stated at fair value. The profit and loss from the revaluation into fair value on the balance sheet date is immediately processed in the income statement. It involves all non-listed items which are valued based on financial models – the 'mark-to-model' method. Any derived financial instruments with a negative value are categorised on the balance sheet under short-term debts.

Receivables from mortgage loans are valued at the amortised cost price. The direct costs related to the provision of a mortgage loan are included as acquisition costs. They are part of the amortised cost price and are capitalised on the balance sheet. An assessment will be made on the balance sheet date as to whether there are objective observations for the impairment of the receivables resulting from mortgage loans. If this proves to be the case, the loss is accounted for in the income statement.

The investments in company loans are stated at fair value. Other loans with a fixed interest are valued at amortised cost price minus a provision for doubtful debts.

Participations in real estate funds, infrastructure funds and horticulture and forestry funds are stated at fair value. This item includes investments without frequent market quotation. Section 5.2 provides further clarification of the valuation method. Value changes are accounted for directly in the income statement. In addition, a revaluation reserve is established for the unrealised value increase.

Participations in mortgage funds are stated at fair value. This item includes investments without frequent market quotation. Section 5.2 provides further clarification of the valuation method. Value changes are accounted for directly in the income statement. 

Investments in cash and cash equivalents are stated at fair value, which equals the nominal value.

Other financial investments are stated at fair value. This item includes investments without a frequent market listing. Section 5.2 provides further clarification of the valuation method. Value changes are accounted for directly in the income statement. In addition, a revaluation reserve is established for any unrealised value increase. An exception is the art collection which is valued at cost price.

Real estate in own use is valued at the historical cost, minus cumulative depreciations and, where applicable, impairments. The depreciations are based on the expected future term of use and calculated based on a fixed percentage of 3 percent of the historical cost, taking any residual value into account. Depreciation is applied from the moment the object is taken into use. Land is not subject to depreciation. Periodical large-scale maintenance is capitalised in accordance with the component approach, in which the total expenditure is attributed to the component parts.

The other intangible assets including inventories and vehicles are included at the historical cost minus depreciations based on the expected lifespan, taking any residual value into account. The costs of major maintenance are capitalised in accordance with the component approach and depreciated over the expected lifespan. Depreciation occurs linearly, under the following depreciation terms:

• Installations: 10 years;
• Inventory: 10 years;
• Hearses: 8 years;
• Other vehicles: 5 years;
• Company clothing: 2 years;
• Laptops: 4 years

The inventory is valued at the historical cost in accordance with the FIFO (first in, first out) method or lower market value. The historical cost includes all costs associated with the acquisition as well as any costs incurred for storage in their current location and condition. The lower market value is the estimated sales price minus any directly attributable sales costs. The obsolescence of the inventory is taken into account when determining the lower market value.

Provisions are made for legal or constructive obligations that exist on the balance sheet date for which it is probable that an outflow of resources will be necessary and the scope of this outflow can be reliably estimated.

The provisions are valued as a best estimate of the amounts required to settle the obligations on the balance sheet date. The provisions are valued at present value of the expenses that are expected to be necessary to settle the obligations unless stated otherwise.

If it is expected that a third party will pay the obligations and it is likely that the payment will be received once the obligation has been settled, the payment is included in the balance sheet as an asset.

The provision for work anniversaries is included as expected costs during the course of employment. The actuarial method applied to determine the provision is known as the Projected Unit Credit method, which takes into account future salary increases, survival and disability rates, and more. A percentage of 3.7 percent (2021: 1.2 percent) is applied to the long-term investment return and 2.0 percent (2021: 2.0 percent) for the general salary increase. The AG Generation Table 2020 and WIA/IVA data are also applied. The calculated obligation was then discounted by 3.7 percent at the end of 2022 (2021: 1.2 percent).

For any tax amounts to be paid in the future resulting from differences between commercial and fiscal balance sheet valuations, a provision is made equivalent to the sum of these differences multiplied by the applicable tax rate. This provision is then reduced by the still to be settled tax amounts resulting from tax loss carry-forwards insofar as it is likely that the future fiscal profits will be available for settlement. The provision for deferred tax obligations is stated at nominal value. The calculation of the deferred tax obligation applies the tax rates applicable at the end of the reporting year or the rates that will be applicable in coming years, insofar as these have been legally determined. The tax rate at the end of 2022 in the Netherlands was 15 percent over a profit of up to €395,000 and 25.8 percent for higher amounts. In Belgium the tax rate at the end of 2022 was 25 percent. In Germany, the applicable nominal value of 30 percent is taken into account. In 2023, the tax rate in the Netherlands will rise to 19 percent over a profit of €200,000 and 25.8 percent for higher amounts. No changes have been proposed for Belgium and Germany.

This provision is related to costs involving any restructuring of activities and is made in case a constructive or legal obligation arises for the Group. A provision is made if, on the balance sheet date, a plan has been formalised and there is either a legitimate expectation among those involved that the restructuring will take place or the implementation of the restructuring plan has already started. A provision will also be included in the balance sheet for reorganisations for which a plan has been formalised on the balance sheet date, but for which there is either a legitimate expectation among those involved that the restructuring will take place or the restructuring plan will be implemented after the balance sheet date.

If the effect of the time value of money is material, the other provisions will be valued at the present value of the expenses expected to be needed to settle the relevant obligations. Discounting is based on a discount rate for taxes that reflects both the actual market value and the specific risks related to the obligation. If the effect of the time value of money is not material, the other provisions are stated at nominal value. Unless otherwise stated, the other provisions are stated at present value. 

Determining the technical provisions is a process that by its very nature involves uncertainties. The actual payments depend on factors such as social, economic and demographic trends, inflation, investment returns, the behaviour of policyholders, and assumptions about mortality developments. Any application of different assumptions for these factors than the tariff principles currently used in the financial statement could have a material effect on the technical provisions and underwriting costs (see also 5.10: Liability adequacy test).

For payments based on insurance policies that are expected to be made in the future, an obligation is included as soon as the policy is implemented. The obligations for funeral insurance at own expense and risk consists of the (with tariff interest) discounted value of the expected future payments (based on the mortality rate and including already appropriated profit distribution) to policyholders or other beneficiaries, minus future premiums.

The majority of the technical provisions for own-risk funeral insuranceas established in the Netherlands are calculated in accordance with the pure net method at an interest of 2.75 percent and based on the GBMV 1995-2000 mortality table as published by the Actuarieel Genootschap, using the principles related to mortality and interest. For insurance policies with a temporary premium payment, the actuarial interest for the period after the end date of the premium payment is 2 percent.

The technical provisions related to the Yarden portfolio acquired in 2021 are subject to principles that fall under a valuation at fair value at the time of acquisition. The actuarial interest is 1.3 percent on average and the mortality rate is based on the 2020 prognosis table of the Actuarial Society of the Netherlands. Lapses due to other causes than death were also taken at the moment of acquisition into account based on empirical data and the actual cost level. In addition, there are two additional provisions regarding the Yarden portfolio:

• DELA created a provision of €62.4 million to finance the future indexation of the Yarden package policies. These future indexations are estimated at the moment of acquisition and the fair value of this provision will be the present value of these withdrawals. 
• DELA also guaranteed that bereaved will not have to pay inflation deficits for the first ten years after the acquisition. These deficits are estimated at the moment of acquisition and discounted resulting in the fair value of the commitment.

The majority of technical provisions for own risk funeral insurance as established in Belgium are calculated in accordance with the pure net method at the usual interest from the moment of implementation and based on the usual mortality table, using the principles related to mortality and interest. The expected payments are based on the principles of the rate as determined when the policy was signed.

The technical provision for funeral insurance as established in Germany is calculated in accordance with the pure net method at an interest of 2 percent. The mortality rate is based on tables produced by the German Actuarial Society.

The technical provisions in the insurance portfolio acquired in Germany in 2022 are subject to principles associated with a valuation at current value on the acquisition date. The actuarial interest is 2.5 percent on average, and the mortality rate is based on the prognosis for 2022 by the Actuarial Society of the Netherlands.

The technical provision for the DELA LeefdoorPlan (life insurance plan) is calculated in accordance with the pure net method at an interest of 3 percent and based on the tables published by the Actuarial Society of the Netherlands when the rate was introduced.

The technical provision for life insurance as established in Germany is calculated in accordance with the pure net method at an interest rate of 3 percent plus a provision for unearned premium. The mortality rate is based on mortality tables as produced by the German Actuarial Society.

The technical provision for the DELA CoöperatiespaarPlan (savings plan) is calculated in accordance with the built-up policy value based on the paid savings premiums, the already allocated profit shares and the interest rate linked to the rate.

The premiums include surcharges for the coverage of the costs. When the premiums are received or become claimable, the surcharges are released and made available for the coverage of the actual costs, which includes ongoing costs and acquisition costs.

The deferred acquisition costs are deducted from the provision.

The gross premiums consist of the premiums that are payable by policyholders for insurance contracts. The gross premiums excluding taxes and other fees resulting from insurance contracts are included as income when they are due by the policyholder. For single premium contracts the premium is included as income when it is due, with any cost and risk coverages being postponed and included in the result in a constant ratio to the ongoing insurance.

The reinsurance premiums include the premiums resulting from reinsurance contracts. They are stated as a cost in the income statement pro rata to the term of the contract.

The income of the funeral company is included at the moment the services are delivered.

Other turnover accounts for the income resulting from other sources than the operational activities of DELA Group.

Net turnover is the income from the delivery of goods and services minus discounts and the like as well as the taxes imposed on the turnover, and after the elimination of transactions within DELA Group. One of these eliminations ensures payments by the insurer used to realise funerals at the funeral company.

In 2022 an adjustment was made to the models used to determine the solvency ratio to reflect an inaccuracy found during an internal check. The adjustment meant that the solvency ratio at the end of 2021 was 236 percent, not 266 percent. The ratios of the previous years have been adjusted in the key figures. After the discovery of this inaccuracy, we asked an independent third party to carry out a full model review. This showed no further inconsistencies related to the determination of the solvency ratio. The internal monitoring processes were enhanced.

The Solvency II ratio for 2022 is at virtually the same level as the previous year. Various developments such as the negative investment result and rising interest rates and inflation have opposite effects which almost cancel each other out. Stress tests show that the solvency position is robust, but that DELA Group is sensitive to scenarios with a low interest rate and low inflation.

The model was adjusted after an inaccuracy was found. This involved an adjustment to the SCR on 31-12-2021 to €848 million. See section 4.1.1 for further details.

It is clear that the underwriting risks and market risks are the largest. The gross positions of both (without taking into account the mitigating effect of profit sharing) are approximately the same as they were at the end of 2021. The mitigating effect of the profit distribution was reduced. This is due to the significant increase in interest rates in 2022, and therefore the coverage. This was 234 percent at the end of 2022 which is higher than the level of 210 percent at which a full profit distribution is given. As a result, the Solvency-II fluctuations partially lead to less profit distribution and the mitigating effect of profit sharing is therefore lower than at the end of 2021.

The model was adjusted after an inaccuracy was found. This involved an adjustment to the core capital on 31-12-2021 to €1,996 million. See section 4.1.1 for further details.

Both the capital requirement and the core capital increased in 2022. Due to the interest rate increases in 2022 the value of the technical provisions fell significantly, which meant that the core capital rose despite the negative investment return. The composition of the core capital is represented in the table below (amounts in € million).

The market risk is the risk of possible losses due to unfavourable developments in the financial markets. The value of the investments and obligations depend on developments in these markets, the composition of the investment portfolio and the characteristics of the insurance obligations.

DELA Group has mitigated the market risk to a significant extent through its profit distribution scheme and premium measure, as well as via derivatives that mitigate part of the currency risk. DELA Group also applies the ‘prudent person’ principle to its investment policy, and full and/or partial ALM studies are performed periodically to assess whether the investment policy is still suitable.

The table below shows the development of the market risk, quantified based on the presented standard model (amounts in € million).

Market risk development

The financial markets were volatile in 2022 (as they were in 2021). Interest rates and inflation increased compared to 2021, and the investment return was negative. As the solvency can withstand these conditions, the higher risk estimate for the market risk was left unchanged.

The main developments impacting the capital requirement for market risks in 2022 were the aforementioned lower mitigating effect of the profit distribution and the adjustment of the investment mix. Compared to 2021, there were more investments in real assets (real estate, infrastructure, agriculture & forestry) and fewer in shares and bonds. This resulted in shifts in the capital requirements for market risks.

The underwriting risk is the risk that the scope and timing of pay-outs are not aligned to the expectations as included in the premium determination. DELA Group mitigates the underwriting risk in various ways, including via its profit distribution and premium measure, but also via reinsurance, (medical) acceptance and a continuous focus on costs.

DELA Group is exposed to the life insurance risk alone as it only provides life insurance policies. The portfolio largely consists of funeral insurance, with specific rates for the Netherlands, Belgium and Germany. These rates are based on specific characteristics and starting points (actuarial interest, costs, mortality tables) aligned to each country. Every year, DELA studies whether these starting points remain in line with the development of the relevant portfolios. The portfolio is large in numbers and scope, with a limited chance of fluctuations in the results. The portfolio of DELA Germany did increase significantly partly due to the fact that DELA Group acquired the funeral insurance portfolio of Monuta in 2022. 

In addition, DELA Group has a temporary life insurance policy in the Netherlands and Germany. The insured capitals herein are significantly higher than in the funeral insurance. Reinsurance is used to limit any volatility of the results for this portfolio. 

Finally, DELA Group has a savings product in the Netherlands. The mortality risk of this portfolio is limited at 10 percent of the built-up value.

The table below shows the build-up of the underwriting risk (amounts in € million).

Underwriting risk

The underwriting risks increased. This was also due to the lower impact of the mitigating effect of the profit distribution due to the higher interest rates and coverage on 31 december 2022.

Credit risk (or: counterparty credit risk) is the risk of losses due to an unexpected default or unexpected worsening of the credit rating of the counterparties and debtors of the insurance company. This mainly involves receivables related to mortgages, reinsurers, derivatives or other debtor receivables. The scope of the credit risk in 2022 did not change significantly.

This is the risk that DELA Group is unable to fulfil its financial obligations to its policyholders or other creditors at any time because assets cannot be traded fast enough. The liquidity risk is not expressed as a capital requirement (SCR) in Solvency II. DELA Group must have sufficient cash and cash equivalents to pay claims resulting from the existing insurance agreements and to pay for its yearly expenses. DELA Group uses multiple banks in order to have access to a wide range of credit facilities. In addition, DELA Group has credit facilities with the custodian of the shares and bonds. DELA has fulfilled its financial obligations to policyholders and other creditors in 2022.

In addition to financial risks, DELA Group also faces operational risks. These are risks resulting from external influences related to the failing of people, processes or systems. The main operational risk areas are further detailed below. 

Operational risks occur at all levels of the organisation. The control measures are therefore embedded in various specific policy documents, protocols and process descriptions. 

This risk domain in DELA Group is built up of the following sub-risks:

Integrity risks are paired with the threat of damage to DELA’s reputation or existing or future threats to the capital or results as a result of insufficient compliance with the law. In principle, DELA Group monitors this issue from its compliance function based on the themes in the systematic integrity risk analysis (SIRA). The remaining risk is therefore considered very limited, and DELA believes that no additional capital has to be reserved.

The SIRA themes are: 

• Organisational and employee integrity: organisational integrity includes themes such as governance and outsourcing. Employee integrity involves the integrity of the Executive Board, the internal supervising body, and internal and external employees. Related subjects are pre- employment screening, professionalism and conflicts of interest.
• Customer-chain integrity: this involves both the integrity of customers and how the organisation treats customers. It also includes the integrity of the chain in which the company operates. Themes range from duty of care to combatting money laundering and terrorism.
• Market integrity: this relates to the integrity of the (financial) market(s), including issues such as competition and market abuse.
• Integrity related to the processing of personal data: this involves the integrity of the data used within DELA Group(such as the processing and security of personal data). 

Fiscal integrity was added as a separate domain within SIRA in 2022 and relates to the fiscal control within DELA Group. Second line managers will further develop the monitoring of key fiscal risks in 2023 in alignment with the tax manager and responsible management.

In addition to the risks included in the standard model related to determination of the capital requirements, there are various other risks that are of interest to DELA Group. The sections below describe these risks in further detail.

Real estate involves investments in direct properties. The balance sheet of DELA Group does not include any real estate investments from operational leasing in which DELA Group is the lessee. To realise a better geographical distribution of real estate investments, parts of the portfolio were sold from 2020 onwards and investments made in international real estate funds (investment category: real estate funds). The value of the properties (excl. crematoriums) which were still in the portfolio at the end of 2022 had fallen by approximately 4 percent during the year. The market rent of these assets fell by around 4.3 percent. At the end of 2022 the total value of this portfolio was 14.4 times the market rent (2021: 14.3 times).

A positive result of €7,772 was realised over the disposals. The sales result is determined by the difference between the net sales return and the valuation on the balance sheet on the selling date.

Other real estate does not include assets that are not being used for company activities.

The overview below shows a categorisation of the real estate objects.

The investments in retail mainly consist of retail properties at A-1 locations and shopping centres throughout the Netherlands.

Other real estate relates to DomusDELA. The fair value of DomusDELA Vastgoed and Klooster for the first five years is based on the establishment costs as this period is considered a start-up phase. 

Of all real estate, €8,510 involved crematoriums that were under development on 31-12 2022. The valuation of real estate under development did not take into account.the company’s development costs, other indirect costs or interest rates.

The rental contracts of commercial real estate are drawn up based on ROZ model 2012. 93 percent of the contracts have a fixed term and are extended automatically if not terminated. 59 percent have a fixed term with an extension rule of five years, and others have various fixed terms (usually one or three years). About 7 percent of the contracts are indefinite and can be terminated at any time with a term of notice of one year. The rental contracts do not include an option to buy.

The negative ‘Other income and costs’ are mainly the result of an unrealised depreciation in value in the real estate; this is part of the investment results.

DELA Group has a limited exposure to operating costs related to vacant properties.

The valuations of real estate include estimates, which means there is a level of uncertainty in the value and a bandwidth should always be taken into account. The accuracy of an appraisal of a common object should be within a bandwidth of 10 percent (+ / -) of the value. The valuation method used for each real estate category is clarified below.

• DELA Funerals Assistance 1 BVBA has a 35% interest in Société d'Étude et de Service pour la Crémation NV;
• DELA Uitvaartverzorging NV has a 20% interest in Stoppelenburg BV, a funeral company located;
• DELA Holding NV has a 18.4% interest in Neo Joule BV which was set up to research various cremation methods;
• Voor Elkaar Holding N.V. has a 16.2% interest in The Right Meal BV. The company offers personal dietary advice and supervision in the event of illness and treatment based on personal tastes and living conditions;
• Voor Elkaar Holding N.V. has a 25% interest in Salarise BV. This Peer-to-Peer loan platform provides attractive, repayable loans for people with employee salaries. DELA Holding NV has the option to expand its interest to 100%; 
• DELA Uitvaartverzorging NV has an interest of 25% in the funeral company Jelsumerhof Beheer BV.

Shares and bonds
All shares and bonds are listed on the stock exchange. 

The modified duration formula is used to measure interest rate sensitivity. The average modified duration of the bonds and other loans is 6.1. 

Derivatives
The valuation of the derivatives (forward exchange contracts) is made based on the ‘mark-to-model’ approach. The average remaining term of these contracts is 2 months. There were also derivatives (forward exchange contracts) in place on 31 December 2021 but their value was negative so they were categorised on the liabilities side under short-term debts.

Mortgage loans
The mortgage loans involve direct investments in mortgages, all provided with NHG accreditation. The current value of the mortgage loans is €157,351. The current value of the collateral for the mortgage loans at the end of 2022 was €375,103.

Other loans
Some €3.5 million of the loans were at a fixed-interest percentage on 31 December 2022. For these loan is a security consists of a pledge on all outstanding shares in the relevant counterparty and a security deposit of €0.5 million.

Real estate funds
The real estate funds are not listed on the stock exchange. The valuation of the real estate funds involves the fair value using the DCF method. This valuation is taken from the fund managers and is the valuation model also used in the trading of property. The valuation is in accordance with generally accepted methods and set by an external appraiser/valuer. We receive an ISAE3402 Type II report or equivalent for most funds. The audit statement from the external accountant with the valuation or annual statement of the funds is only received in some cases after the DELA Group financial statements has been drawn up. Analysis has shown that sufficient certainty exists for the reliability of the valuations as accounted for by fund managers, although there is a limited risk of the kind of estimation uncertainty that can naturally occur for investments held by the fund.

Infrastructure funds and agricultural and forestry funds
The infrastructure funds and agricultural and forestry funds are not listed on the stock exchange. Their valuation is based on the fair value provided by fund managers. The valuations are established using the DCF method and local accounting standards, and we have determined that there are only marginal differences between them. The valuation is preferably performed by an external appraiser/valuer. We receive an ISAE3402 Type II report or equivalent for most funds. The audit statement from the external accountant with the valuation or annual statement of the funds is only received in some cases after the DELA Group financial statements has been drawn up. Analysis has shown that sufficient certainty exists for the reliability of the valuations as accounted for by fund managers, although there is a limited risk of the kind of estimation uncertainty that can naturally occur for investments held by the fund.

Mortgage funds
The mortgage fund is not listed on the stock exchange and comprises investments in non-NHG accredited mortgages. The valuation of these funds involves the fair value, and is taken from the fund managers. The valuations are established via the DCF method. Local accounting standards are applied and these are assessed by DELA for applicability within our valuation principles. The valuation is performed and reviewed internally by the fund’s external accountant and we receive an ISAE3402 Type II report. The audit statement from the external accountant with the annual statement of the fund is only received after the DELA Group financial statements has been drawn up. Analysis has shown that sufficient certainty exists for the reliability of the valuations as accounted for by fund managers, although there is a limited risk of the kind of estimation uncertainty that can naturally occur for investments held by the fund.

On the balance sheet date, the loan-to-value is 66,7 percent (2021: 71.3 percent) 

Investments in cash and cash equivalents
Investments in cash and cash equivalents relate to receivables and debts directly linked to the investment portfolios with a mandate issued to the asset manager. It mainly involves cash positions in the various FGRs (joint account investment funds).

Other financial investments
The amounts included under the Other financial investment item relate to the art collection and interests in non-listed private equity firms. The market value of these private equity firms is based on the DCF method. The art collection is valued at cost price or lower market value; at the end of 2022 it amounted to €2.8 million (2021: €3.5 million).

Securities lending
DELA Group lends shares and bonds. To limit the risk for DELA Group, borrowers must provide collateral for the loans. Cash collaterals are not allowed and the lending parties must comply with strict requirements. To further limit the risk, the following additional restrictions are applied:

• counterparties must have a S&P rating of at least A-;
• collateral may only involve government bonds from OECD countries with a S&P rating of at least AA- in accordance with S&P;
• the market value of the collateral should be at least 102 percent of the market value of the loaned securities;
• shares on our engagement list are not eligible for lending. Engagement is the process by which active rights as shareholder are being used.

The market value of the loaned items on 31-12-2022 was €518.6 million (2021: €364.1 million). The value of the collateral is €536.2 million (2021: €376.2 million).

The liabilities to reinsurers are part of an arrangement and are of a long-term nature. The reinsurers are obligated to deposit the reinsured interest in cash to the insurers of DELA Group. The deposit is subject to an interest of 3 percent to 4.5 percent a year (2021: 3 percent to 4.5 percent).

This involves deposits by clients for future funeral services that are paid out at time of death. This item is therefore mainly of a long-term nature.

The interest rate over the DELA deposit fund is based annually on the ECB deposit interest on 31 December of the relevant year plus 0.75 percent, with a minimum of 1.5 percent to 3.0 percent a year depending on the starting date and deposited amount.

A deposit fund was also acquired as part of the Yarden acquisition in 2021 (accounted for under 'Procurement due to acquisitions’). The interest rate for these deposits in 2022 was 0,01 percent (2021: 0,01 percent).

This involves loans entered into by subsidiaries with applicable interest rates ranging from 1 percent to 2 percent.

Of the monetary loans, €303 has a term of less than one year, €1,153 a term of between 1 and 5 years, and €7,492 a term of more than 5 years.

DELA Group has a convertible loan of €30.0 million with a term until 1 July 2024 with Lightyear - Atlas Technologies BV at an interest rate of 6% a year. The security on this loan consists of a pledge on the IP portfolio (patents and the like). Unfortunately, Atlas Technologies was declared bankrupt on 27 January 2023. The bankruptcy was being concluded as this financial statements was being drawn up.

The company will be relaunched in a slimmed down form, and the loan has been converted into an equity interest in the newly founded company. The current situation remains sufficiently unclear that a fair valuation hereof cannot be reliably made. This means that the processing criteria for an asset in the financial statements cannot be met as it must be possible for the value of an asset to be reliably determined. With this in mind the asset has not been included on the balance sheet for 31 December 2022.

DELA cooperative has issued a liability statement for most of the subsidiaries involved in the consolidation as referred to in Article 2:403 DCC. The subsidiaries involved are included in section 1.2.

Participation in the Dutch Terrorism Claims Reinsurance Company (NHT) entails a conditional obligation for compensation for acts of terrorism with a value of up to €2.1 million. No terrorist act as meant by this agreement occurred in the book year.

DELA Group has issued a total of €0.2 million in bank guarantees. These were mainly issued for rental contracts with external parties.

DELA Group has a credit facility at Northern Trust with a maximum of €100 million or 10 percent of the value of the securities deposited. The collateral comprises the securities in custody with Northern Trust. The interest percentage due is the ESTER interest rate plus 1.25 percent.

DELA Group has a credit facility at Rabobank with a maximum of €4 million. The interest percentage due is the EONIA interest rate plus 1.6 percent.

DELA Group came to an agreement with a counterparty in 2022 to invest €100 million in real estate funds. At the end of 2022 the remaining investment obligations to various counterparties were €100 million and $62 million (which equals €58 million on the balance sheet date).

In 2022 DELA Group did not enter into any new agreements for investments in infrastructure funds. At the end of 2022 the remaining investment obligations were €30 million and $80 million (which equals €74 million on the balance sheet date).

At the end of 2022 the remaining investment obligation in ASR Hypotheekfonds was €75 million.

DELA Group came to an agreement with a counterparty in 2022 to invest €100 million in agricultural and forestry funds. At the end of 2022 the remaining investment obligations were €131 million and $80 million (which equals €74 million on the balance sheet date).

DELA Group is entitled to future rental income as a result of ongoing rental agreements.

Fiscal units have been established in DELA Group for corporate tax (VPB) and turnover tax (OB) in both the Netherlands and Belgium. Every company within the tax unity is severally liable for the taxes due. The table below shows the composition of these tax entities: