Executive Board report

DELA is positioned at the heart of society thereby societal developments can influence our activities and, on occasions, have a considerable impact.

In Germany and Belgium we are using digital communication via partners and directly, while standardised digital connections support our strategic partnerships. 

We are also seeing a growing demand for managing funeral insurance policies online, including consultations and arranging funeral wishes. This option is increasingly used by our policyholders. In all cases, sustainability and addressing the effects of climate change are a key basis for our policy. We use ecologically sustainable materials and provide options with minimal impact on the environment. From caskets to catering, our products and services are flexible and enable us to always offer custom solutions. From facilitating a sustainable funeral or providing unique alternatives such as a chip instead of the traditional coffee and cake, we make everything possible. 

Our broad financial and practical service provision in the areas of funeral care and insurance allows DELA to support members, policyholders and the bereaved in word and deed. We take an engaged, honest and proactive approach to protecting the various interests at play. Our value creation model shows how we use each of the six types of IIRC framework capital (financial, manufactured, intellectual, human, social & relationship, and natural) to realise our goals. We also show the value we create with our core activities and the impact thereof.

Members are represented via the general meeting and online cooperative panel. The general meeting has the final say over a number of key matters related to our cooperative, in particular the adoption of the financial statements, the appointment of directors and the Supervisory Board, and changes to our insurance products. Those attending the general meeting help determine our future.

The cooperative panel was consulted a number of times. In addition to assessing communication publications throughout the year, we involved panel members in the development of new services. At the start of the year, we also investigated how inflation was affecting our members and what they expect in case of payment problems. This consultation showed that funeral insurance is not one of the first savings to be considered. The way we assist our members with payment issues was in line with member expectations and wishes too, and fits with our personal service provision.

Since the introduction of membership in Belgium at the end of 2022, we have proudly welcomed over 80,000 Belgian members. We have also developed various activities to disseminate the cooperative concept in Belgium. This includes a Belgian member magazine called Viva! and the DELA Fund to support social initiatives. We also organised several theme days for members, including one focused on the impact of inheritance tax.

Providing high-quality services is vital to our operations. We measure customer satisfaction levels with our personal services at various times, and these measurements form the basis for guidance, learning and improvement in this area.

Satisfaction levels are measured using the Net Promotor Score (NPS), a common indicator that reveals the extent to which customers would recommend products and services to others. This showed that customer satisfaction dropped by one point but is still at a high level with all areas of our service. 

The main positive feedback was related to the fast and adequate response times and personal attention. Keeping up the knowledge levels of our employees and proactively keeping customers informed where possible remains important. Satisfaction levels related to the customer service for Yarden policyholders remains a point of attention. The satisfaction of Belgian customers with our funeral services has slightly increased. And in Germany, we were able to improve satisfaction among brokers by being more proactive and providing support services to this segment. 

In Germany, we were able to improve satisfaction among brokers by being more proactive and providing support services to this segment. Satisfaction among Belgian customers with our funeral care improved. This is thanks to our colleagues who work hard every day to ensure each send-off is memorable, while maintaining a close eye on the wishes of the family and the deceased. People continue to be very grateful for a helping hand and support in times of grief.

DELA has a robust and strong reputation and our activities are partly focused on maintaining and strengthening this. We have a good reputation among both members and non-members, especially in the field of providing financial support and our contribution to saying goodbye and remembering. In Belgium, a strong content and PR plan contributed to the continued growth of our reputation as the funeral specialist in Belgium.

In addition to protecting and enhancing our own reputation, we also actively work on the reputation and quality of the sector as a whole. In addition to our own initiatives and efforts, legislative support is sometimes required to ensure our societal role can be successfully carried out. As part of Uitvaartorganisaties Nederland, a collaboration of various sectoral and trade organisations in the funeral sector, we have advocated seven changes to the Dutch Burial and Cremations Act. We presented this proposition to the Dutch Lower House in April 2023, and have since highlighted it in the public domain via social media and at various meetings.

There were just over 169,00 deaths in the Netherlands in 2023 (2022: 170,000), and we arranged approximately 41,000 funerals (2022: 39,800) and more than 43,000 cremations (2022: 43,000). The number of funerals is lower than expected, especially due to a lower number of funerals for Yarden policyholders. We realised some 9,400 free market funerals (when the deceased is not insured with DELA), compared to approximately 8,400 in 2022. The number of cremations was in line with our ambitions. This was supported by the opening of the new ’t Karbrugsche Veld crematorium in Bemmel and the reopening of DELA Maaslanden in Nieuwkuijk. 

In 2023 we made preparations for a new campaign that began at the start of 2024 and is focused on our colleagues from the funeral company. They put a face to all aspects of the funeral business every day. Featuring real people with real stories, the campaign aims to show that our services are warm, personal and of a high quality, and it should provide an extra boost to the funeral business. 

Belgium recorded some 111,000 deaths in 2023, compared to approximately 116,000 in the previous year. We arranged around 12,700 funerals (2022: approx. 12,800) and some 7,200 cremations (2022: approx. 7,300). The funeral company in Belgium is mainly focused on funerals for non-insured people. As a result of local marketing, acquisitions and majority interests, the number of funerals and cremations we provide is rising, although in contrast to the Netherlands the number of deaths was not higher than average in this country. The market share was lower than expected, and we are therefore focusing on more intensive marketing and strengthening cross-pollination with the insurer as DELA can arrange funerals upon policyholders’ deaths.

A pilot project in 2023, designed to increase familiarity by linking the name DELA to our local brand, has been continued and expanded in 2024. The strength of the DELA Group allows us to create a strong, recognisable funeral proposition. In Belgium we also worked on a product and service catalogue which will help clearly communicate our service provision in the Belgian market. For 2024, we are preparing a similar campaign to promote the funeral business in the Netherlands.

Every funeral we arrange is unique, personalised and of a high quality. At the same time, we ensure that we use sustainable products and establish partnerships with the right suppliers. We are a pioneer and innovator in the sector for sustainable funerals and can have a serious impact as a major player. In 2023 we boosted the domain of sustainable funerals by providing more detailed information about the various options in this field, such as eco-friendly caskets, waste processing and printing. Our goal is to reduce our negative impact on the environment. To do so, we are seeking out strategic collaborations with suppliers and partners who share our sustainable vision and have a heart for acting with integrity.

The toughest period for bereaved relatives often starts after the funeral. In addition to being in mourning, they are faced with numerous practical, financial, legal and administrative tasks. We help in these difficult times by offering practical support and tips based on individual situations. Aftercare is free for our policyholders. It is a standard element of DELA funeral insurance policies in the Netherlands and Belgium and for all funerals we arrange in the Netherlands.

At the end of 2023, we started a pilot project related to processing grief and coping with loss. Called LEAVES, it provides an online environment where people who have lost their partner can learn more about bereavement and its effects at their own pace. They can write down their experiences and receive support in their grieving process. In Belgium we are also planning an expansion of member benefits by building on our grief-related expertise. 

The size of our total portfolio, measured by the number of people insured, is a major spearhead for realising our ambitions. This year we saw solid growth with all three countries contributing.

The DELA Uitvaartplan in the Netherlands saw further growth. While the net growth was lower in 2023 than in previous years, we still exceeded our goal. The lower net growth is partially due to the high number of deaths. Extra marketing allowed us to realise further growth. In 2023, we determined a plan of approach for converting the Yarden package policies into a DELA Uitvaartplan policy. A pilot for realising this plan began in 2024. 

While net growth in life insurance policies was negative in the Netherlands both the growth and losses were better than expected.

Due to the changes to the Dutch tax system (Box 3) the decision was taken to stop marketing activities related to our Spaarplan savings scheme. Its fixed interest rate of 2 percent has made it a less attractive savings product in fiscal terms.

The growth in Belgium exceeded our goal, partly due to an effective digital marketing strategy. The positive result was particularly caused by the continued development of the online request process with a focus on the family unit. We also worked on a new insurance proposition for the Belgian market that is expected to be implemented in 2025. DELA is unique in Belgium for the way it both insures and arranges funerals.  

In Germany we sell funeral insurance (Sorgenfrei Leben) and life insurance (Aktiv Leben). The funeral insurance covers funeral costs and does not involve a package policy. The portfolio has grown over recent years to almost 200,000 funeral policies, partly due to the acquisition of Monuta.

Although the German market for life insurance shrunk in 2023 and has yet to recover, we still have significant growth ambitions. Realising them will require a shift of focus to direct contact with customers, entering into various strategic partnerships to enable us to use new sales channels. 

In addition to insurance and funeral services, we are providing new services through third-party companies via Voor Elkaar Holding (VEH). This holding was established to be a part of and make investments in companies which promote solidarity and cohesion in society, taking their scalability and financial health into account. Specific attention is paid to support for informal caregivers and providing financial guidance. 

As part of the DELA cooperative, VEH is a strong strategic and financial partner that helps companies develop. We contribute our capital and broad expertise in the field of marketing, finance, sales, IT and innovation to promote sustainable growth and also increase our societal impact.

In 2023 VEH further expanded its expertise and aligned its governance to the group governance structure. The process for new investments is ready and we are looking at how to further optimise this in the near future. There were several exploratory meetings with new companies to expand services in the field of financial support or informal care in the coming years. We are currently providing services via the following three companies:

• Prikkl: the coaching and advisory platform for financial insights.
• Salarise: a platform provided via employers which helps employees build their financial future by providing knowledge and insight, personal coaching and loans at good terms.
• Fello: a service that facilitates informal caregivers in their work and helps by taking over administrative tasks.

In late 2023 VEH made an initial investment in Prikkl. Prikkl aims to help Dutch people make smart financial choices at all stages of their lives. Moreover, the turnover of Fello tripled in 2023, and the activities of Salarise were broadened to appeal to an even larger target group. We also decided to make no further investments in The Right Meal in 2023, which led to the company’s bankruptcy. The company has since been relaunched.

At DELA, we are committed to ensuring that our employee database reflects the full diversity of the society in which we operate, that everyone has equal opportunities and feels able to be themselves. DELA-wide, two-thirds of all DELA Group employees are female. In leadership positions, the 30 percent minimum rule for women and men is easily achieved. When personnel changes occur, we always take increased diversity into account.

There is a strong company culture within DELA where employees see their work as meaningful and attach great importance to being customer-oriented. People enjoy working together, employees feel safe and the atmosphere at work is pleasant. Employees are proud of DELA and their jobs. We have detected a decline in employee satisfaction. Analysis shows that there are several areas of improvement. Firstly, we should optimise our communication about strategic changes to ensure employees are fully informed of the course of our organisation and feel more involved. We also aim to streamline our working processes to enhance efficiency and address the working pressure some employees experience. In addition, we understand the importance of a culture in which people are stimulated and facilitated to address each other about conduct, with respect for diversity and inclusion. Joint efforts in these areas will help strengthen our organisation and stimulate a positive and productive working environment where every employee feels at home. 

An internal traineeship course has been launched to support a number of employees as they grow into managerial positions. There is a leadership programme in both the Netherlands and Belgium to promote a member- and result-oriented culture. Both countries also focus on talent development. Employees are stimulated to work on their own and team growth via personal development plans. DELA Germany will follow in 2024. The establishment of an Academy with training opportunities is aimed at boosting development especially in Belgium and in the Netherlands. In Germany our limited brand familiarity still plays a role in attracting new employees.

We’re also aiming to increase the labour force potential in various ways, including by seeking out partnerships with sheltered employment organisations and schools, and we’ve introduced a new onboarding programme  called ‘Warm Welcome Days’. This includes an online preboarding, a physical first introduction day at the head office and a return morning or afternoon at their DELA location. Practical tasks ensure that new employees gain insight into the organisation, our goals and core values and, of course, their own tasks. Additional focal points in the overall programme are managing one’s own development and being member-oriented. DELA Belgium and DELA Netherlands joined forces to address issues such as absenteeism, turnover and a tight labour market together. 

In Belgium, a work-related accident is deemed to involve an event that leads to at least one day of absence. An incident indicates that something has occurred which does not lead to absenteeism. In 2023 there were five occupational accidents (2023: 10) and 15 incidents (2022: 13) in Belgium. In total six were related to a fall, nine occurred in traffic, and one was caused by lifting or hoisting activities. We aim to keep occupational accidents to a minimum by means of registration and evaluation.

No work-related accidents were reported at DELA Germany.

The meetings of the Belgian works council mainly focused on good employership and personnel policy. The tight labour market and societal developments demand a continuous effort in addressing changes, safeguarding the interests of staff and promoting a healthy and productive working environment. Other items discussed included absenteeism and turnover as well as the action plans based on the employee satisfaction survey. The works council also zoomed in on new legislation, including the implementation of flexible jobs, and how these developments could impact our organisation. New policy measures related to working from home, lease vehicles and availability were also on the agenda. The goal was to facilitate flexibility and mobility and stimulate a healthy work-life balance for employees.

Further progress was made during 2023 in the field of digitisation, including with a company-wide data platform. To promote efficiency and impact, we developed an IT shared services centre for our national organisations. We are also seeing rapid developments in information security which demand constant focus and awareness. This is stimulated via online courses and sharing experiences. In addition, we reviewed and enhanced the roles and rights within the information security framework. Developments with regard to artificial intelligence are rapidly progressing. We’ve developed a policy to give employees tools on how to deal with AI. We also faced targeted and random cyber-attacks on our IT infrastructure and we've started working with a specialised cyber security firm that constantly monitors the situation.

Digitisation is also being used to make our organisation and services future-proof. It is important that we choose the right priorities. One of these priorities is working on a group-wide financial administration system. Transferring to a new administration system is a multi-year project that affects the entire chain from our ledger to the invoicing system and our accountability and reporting.

One of these priorities remains the replacement of the administration systems for our insurance portfolio, initially for DELA Netherlands. This ‘insuring the digital transition’ dossier is a recurring item on the agenda of the Executive and Supervisory Boards, and we worked hard during 2023 to take a next step in this major multi-year project. It has already had a significant impact on our existing capacity and comes with various challenges in the technical and change management fields. Implementing new systems and processes initially increases the complexity of our IT infrastructure and requires a thorough revision of work methods and employee engagement. It is crucial to ensure employees are well-prepared for these changes, build up knowledge and receive the support necessary for a smooth transition. We are being supported in this process by an implementation partner. 

While this was all going on it has been essential to ensure that daily activities could continue without interruptions. Integrating this multi-year project in our regular activities carries a considerable risk for the continuity and efficiency of our operational processes. With this in mind we decided over the course of the year to improve internal control and focus more particularly on the specific needs and challenges of the project without disrupting current business. This decision improved control of the progress, reduced costs incurred by the project, and facilitated a more streamlined approach in its realisation. Eventually, this will all result in a successful implementation. We are proud that we were able to migrate a large part of our Dutch insurance portfolio during 2023 and the experiences gained will be used in the coming year as we convert the remainder of the insurance portfolio. 

DELA Belgium also had a strong focus on creating a more manoeuvrable and result-oriented organisation in order to further optimise its personal service provision to customers. Important steps were taken to replace its CRM system. 

In Germany, the year revolved around safeguarding the digital infrastructure to facilitate the existing service provision. It was also decided to adopt a new system that will, among other things, administrate the acquired German Monuta portfolio. A lot of work went into ensuring that this system can be implemented in 2024, with a significant focus on ease-of-use. The new system should also facilitate an optimal customer journey within the frameworks of the applicable legislation and regulations. 

Recognising that this greenhouse gas makes a major contribution to global warming, we are aiming to reduce CO₂ emissions from our operations and services. Europe expressed its intention in the Paris Climate Agreement to achieve a 55 percent reduction by 2030 and be climate-neutral by 2050.

DELA is even more ambitious, looking to reduce our CO₂ footprint to zero faster, especially for scope 1 and 2. In 2024 we will further enrich our CO₂ goals and detail our net-zero plan to employ various measures. These include lowering energy consumption in our buildings via renovations, clustering and/or their sale. In the Netherlands we will be electrifying our furnaces step-by-step while doing the same for our fleets in the Netherlands and Belgium. We will also be generating green power ourselves via the installation of solar panels. 

We are confronted with various dilemmas in reducing the CO₂ emissions of scope 1 and 2, including overload of the electricity grid. Our service provision is sometimes hindered due to the limited capacity of the grid, and expanding our electricity connections isn’t always feasible. This forces us to devise creative solutions to reduce our CO₂ emissions. Another focal point involves the availability of electric furnaces. The demand for this environmentally-friendly solution is currently larger than the supply. Thankfully, we are seeing new players enter the market and we are monitoring all new opportunities that arise. A crucial part of our efforts is increasing knowledge about CO₂ reduction within the organisation. A combination of awareness and education is helping us involve all employees in reducing our environmental impact. In addition to new technologies, this involves compliance with guidelines such as saving energy.

CO₂ emissions increased by 17 percent in 2023 compared to 2022. Explanations for this increase include the stricter regulations and requirements for CO₂ emission calculations. The electricity consumption for charging lease vehicles was added to the calculation based on grey power as these often use external chargers (226 tons CO₂). In addition, the compensation item for the purchase of WNF Gold standard and forest-compensated natural gas can no longer be applied. This resulted in an increase of 5,589 tonnes of CO₂ in scope 1. 

We have developed a climate transition plan to structurally reduce our CO₂ emissions that includes the projects for energy saving and increasing sustainability to structurally reduce our CO₂ emissions. Since 1 January 2023 the Netherlands purchases 100% Dutch wind energy for electricity, and a combination of Greenchoice forest-compensated and WNF Gold standard gas for natural gas, which reduces scope 2 emissions. In Belgium all electricity purchased will be green from 1 January 2024. Over the past year, we installed three new electric furnaces in our Dutch crematoriums, which means that eight of our 47 furnaces are now electric. We cannot currently accelerate our electrification due to the limited availability and congestion of the electricity grid. Energy consumption has been further reduced by the closure of several locations due to the merger of CVU and UNC. Our lease policy in Belgium was adapted so that only electric lease vehicles could be ordered since 1 July 2023. The Netherlands will adopt this decision from January 2025 due to existing contractual obligations. We’ve also taken a first step towards electrical funeral vehicles in the Netherlands. 

We are also focusing on indirect emissions related to our value chain (scope 3), especially on the products and services we purchase related to funeral activities. This includes aspects such as funeral vehicles, hearses, caskets, printing, flowers, catering and visitor transport. To reduce emissions in this scope we implemented active strategies in relation to our suppliers. A key strategy is aimed at reducing the scope 1 & 2 CO₂ emissions of our suppliers. We support them with enhancing their insights and stimulating plans for CO₂ reduction, for instance by optimising and electrifying their transport movements. We are also actively looking at their material use. Cooperation with suppliers is essential and we are encouraging them to make sustainable choices in their production processes. 

While we do not produce any products ourselves we do use materials in our service provision (raw materials and manufactured). We take our responsibility as an insurance and funeral company seriously by working with suppliers who share our sustainability goals.

Our strategy for increasing the sustainability of material use is based on several pillars. Firstly, we aim to only use what is absolutely necessary. This includes minimising the weight of products to reduce their ecological footprint. In addition, we aim to use recycled or biobased materials, reducing our dependency on raw materials. Another major aspect of our sustainability strategy is to minimise packaging and implement a return/recycling policy when a product’s lifespan has been reached. These initiatives were designed to reduce the amount of residual waste and our negative impact on the environment.

The CSR procurement code, as published on the website, has a wide coverage and suppliers are asked to endorse this. In doing so suppliers commit to dealing with CSR focal areas in a constructive way, with specific reference to labour and human rights as included in the United Nations Universal Declaration of Human Rights. Suppliers are also expected to demand the same from any subcontractors and make clear how important we find this issue. The CSR code is an intrinsic part of all agreements made with suppliers, although we have unfortunately seen that ongoing (local) contracts signed in the past may deviate from this code. 

Increasing legislation and regulations also affect our procurement process. In 2023, we further optimised the contract/supplier management process; not just from a sustainability perspective (sustainable material use) but in a broader sphere. The so-called ‘Supervisory-relevant Important or Critical Outsourcing Contracts’ were all evaluated and updated, and any associated processes were adjusted accordingly. The purchasing department reinforced its position by taking on a clearer management and coaching role in 2023. 

In 2023 we analysed a CSR roadmap with our existing suppliers for caskets, printing and funeral vehicles in the Netherlands. The suppliers committed to drawing up a step-by-step plan to support our sustainability ambitions. 

When entering into new contracts we specifically focus on sustainable material use, especially for signage and catering. The latter also involves the aim for the ‘1-star better life’ certification for meat products and a larger percentage of vegan/vegetarian products. The new signage mainly consists of recycled materials, including recycled PET, aluminium and acrylate.

DELA was founded through a sense of solidarity and the value we attach to social engagement. We believe it is important to contribute to society and be there for each other. Every employee is given the opportunity to spend one working day a year on volunteer work without having to use one of their own day offs.

We have our own DELA Fund in both the Netherlands and Belgium. Everyone can submit projects to the funds that are aligned with their themes. In the Netherlands the fund focuses on connecting the generations, while in Belgium it revolves around making the difficult times around saying goodbye more bearable.

The Dutch Fund received nearly 350 requests from associations and foundations and contributed to 183, with 147 receiving up to €1,500 and 36 between €1,500 and €10,000. We also collected warm winter coats from our personnel, which were distributed between Stichting Ervaring die Staat, The Salvation Army, t Hemeltje, De Kledingbank, Dress for Success, Awesome, de Kledingzolder and Huiskamer voor Vluchtelingen via ‘Samen voor Eindhoven’. Another Eindhoven initiative is GLOW, a free light art festival where artists and designers from the Netherlands and abroad showcase their light art and design applications. Our employees took elderly residents from De Zonnebloem out for a meal and a tour of the light art objects. Meanwhile, we’ve been collecting toys for the past decade for an annual Christmas event aimed at making the holidays for children from families registered with the local food bank a little better. In addition, our annual Christmas card campaign saw some 18,000 children colour cards for the elderly living in care homes.

In Belgium we supported various volunteer organisations looking to make the last farewell a little less painful via the DELA-Do-Good-Days. Other initiatives that received support included Kompas, an organisation for people with a disability who often depend on their carers when confronted with loss and grief. A place of solace was created in their garden especially for them, designed to help people come to terms with their loss. Another initiative involved a contribution of 5000 candles to Reveil, an organisation aiming to help change the Flemish culture of grief. The DELA Fund also supported the ‘De Panne Solace Capital 2023’ project, which concluded with a large event at the De Panne cemetery on 1 November where the beach was illuminated with the 5000 candles we financed.

In addition to the DELA Fund, sponsoring also helps us achieve the societal impact we hope for. Our goal is to facilitate tangible and positive change and disseminate this widely to serve as an example. In 2023 we once again sponsored the Roparun relay race where teams of people raise funds for cancer sufferers. DELA also took part with a team in the 32nd edition of the event, which raised over €2.6 million.

This year we decided to stop being a main sponsor for the Roparun from 2024 on, giving us the time and opportunity to explore other options. Our starting point remains to invest in initiatives which reflect our corporate social responsibility and effectively contribute to a sustainable impact on society.

After deduction of the reinsurance premium, the premium income was €712.7 million (2022: 669.0 million), a 7 percent rise compared to the previous year (2022: 13 percent).

In the Netherlands, the premium income dropped by €6.9 million to €480.7 million mainly because the savings product became less attractive for some customers due to new tax legislation related to Box 3. In Belgium the premium income was €161.9 million (2022: €146.1 million), an increase of over 11 percent thanks to a gradually growing portfolio. In Germany the premium income increased by €34.8 million to €70.1 million, mainly due to the Monuta portfolio acquired at the end of 2022.

The operating result is the result achieved from our core activities, not including exceptional income and expenses, profit sharing and taxes. The operating result for 2023 amounts to €36.1 million, which is lower than the €47.6 million in 2022 due to various incidental costs.

The insurance company’s result was €74.2 million, 3 percent higher than in 2022.

The result of the funeral company was minus €16 million (2022: €0.1 million). This can partly be attributed to a rise in the subcontracting of external funeral directors and transport as a result of the high level of absence due to illness and the need to train new employees. In addition, we had not processed all the higher energy costs and personnel costs due to inflation in our funeral rates in 2023, partly because the price for the DELA Uitvaartplan insured package had already been determined by the general meeting in May 2022.

The costs attributed to the VEH, staff departments and cooperative were €24.0 million (2022: €23.0 million), partly due to the extra expenditure on the new strategy and innovation projects.

The net investment return over 2023 was 4.6 percent (2022: minus 9.5 percent). Shares had a return of 14.3 percent and fixed-income securities were 7.2 percent. The return on investments in real estate was minus 7.9 percent. The return on infrastructure and agriculture & forestry was respectively 5.3 percent and 2.6 percent. The net investment result in 2023 amounted to €337 million (2022: a loss of almost €840 million).

The volatility in the value of our investments is a direct consequence of our strategic investment choices. These are aimed at achieving the solid long-term returns on which the premium is based as well as to offset any rise in funeral costs. The nature of the insurance policies (in most cases paid out in the event of death) leads to long-term obligations. Investment results can fluctuate as this extended horizon requires an offensive strategy. By accepting a calculated risk in our investment strategy, we have been able to achieve the required results over the years. A consequence of this policy is that there are sometimes significant fluctuations in the value of our investment portfolio. 

The technical provisions including a provision for profit-sharing and minus deferred acquisition costs and reinsurance increased by €489.7 million. The technical provisions on our balance sheet are based on fixed principles such as the actuarial interest. This is why the impact of higher or lower interest rates and/or inflation on the technical provisions is not visible on this balance sheet provision. On the basis of market value, the technical provisions increased by €539.3 million. This difference of €49.7 million is also shown in the reduction of the surplus value of the liability adequacy test on the technical provisions.

The coverage ratio represents the market value of the investments in percentages of the market value of the guaranteed liabilities and depends on factors such as interest rates, mortality and costs. The coverage ratio at the start of the year under review was 234 percent and ended at 219 percent. 

In 2023 we saw a slight fall in interest rates compared to the significant increases in 2022. This resulted in a 19 percentage point reduction of the coverage ratio in 2023. Higher expected future costs led to a decrease of 6 percentage points. Developments in the insurance portfolios and lower inflation each resulted in an increase of the coverage ratio by 4 percentage points and the investment results led to a 3 percentage point increase. The average coverage ratio during 2023 was 251 percent (2022: 195 percent).

The average coverage ratio during 2023 was 251 percent. This high ratio led to a high profit share.

In 2023 profit sharing was determined at €249.2 million (2022: €43.7 million). Funeral costs rose by 6.62 percent as the increased price inflation was higher than usual. The average coverage ratio was high, which enabled us to realise a profit share of 83 percent to DELA UitvaartPlan policyholders in the Netherlands. Profit sharing was also high for policyholders of the funeral product in Belgium. All in all, the result was a historically high profit share for our policyholders.

DELA has awarded profit sharing worth €574 million in total over the past ten years.

Around 55 percent of insurance customers have the DELA UitvaartPlan. The premium increase for the UitvaartPlan in the Netherlands on 1 January 2024 was 7.57 percent (1 January 2023: 2.96 percent). In principle this was based on three factors, namely inflation, allocated profit sharing and the possible premium measure. Here we explain how these factors have contributed to the rise: 

• 6,62% Increase related to rising funeral costs.
  This component of the premium change is determined annually by the general meeting. The expected inflation rate for the following year determines the proposal for the premium increase as of 1 January. The expected inflation was 6.62 percent and this was the figure proposed to and adopted by the general meeting as the component for the premium adjustment on 1 January 2024;
• 0,95% Increase related to not fully awarding profit distribution for the coverage of the back-service.
  The total premium for the back-service is 5.56 percent, 83 percent of which is allocated as a profit-sharing percentage. The other 17 percent needs to be covered by policyholders.
• Increase related to the premium measure as a result of a structurally low interest rate and low coverage ratio.
  A premium measure didn’t apply as the average coverage ratio was above 120 percent in 2022.

DELA determines its solvency in accordance with the Solvency II capital regime, hence the name Solvency-II ratio. This involves European calculation rules in which the risks included in the balance of the insurer are taken into account in determining the solvency. The Solvency-II regulation demands sufficient solvency as a precondition for profit distribution.

The solvency ratio has decreased from 226 percent to 208 percent at the end of the year and is still considered robust.

Due to developments in investment returns, the asset mix, interest rates, inflation and volatilities, the Solvency II ratio decreased by 6 percentage points, while lower expected future funeral cost inflation compared to the price inflation resulted in a decrease of 9 percentage points. A change in the premium measure policy as adopted by the general meeting resulted in an increase of the ratio by 8 percentage points. Other developments, such as the result of the holdings and the funeral business, a depreciation of the deferred tax assets and higher future costs, led to a decrease of 11 percentage points.

DELA includes DELA Holding NV and Voor Elkaar Holding NV. The Board members of the cooperative are also the Board members of these two entities.

DELA Holding NV includes three principal companies: DELA Natura- en levensverzekeringen NV (hereafter: DELA Natura), DELA Uitvaartverzorging NV and DELA Holding Belgium NV.

DELA Natura accommodates all Dutch, Belgian and German insurance activities. The Belgian and German activities are carried out via a branch office of the Dutch insurance company.

DELA Uitvaartverzorging NV is responsible for funeral activities in the Netherlands. Belgian funeral activities are covered by the DELA Holding Belgium NV.

The principal companies include subsidiaries and participations. DELA Holding NV always governs the principal companies. Each principal company governs its subsidiaries. In addition, each company may have a director. The authority of each director is defined per company in its statutes, in the authorisation regulations for the relevant company segment and in the Chamber of Commerce registrations.

Voor Elkaar Holding NV (VEH) was established to enhance solidarity and a sense of unity in society by means of cooperative business in the Netherlands. We always take the scalability and financial health of the relevant companies into account as we establish or invest in parties with a social mission. VEH is different from other investors and funds in the way it takes a unique position between private equity and philanthropy. VEH helps entrepreneurs develop their business further. Employing our capital and broad expertise in the fields of marketing, finance, sales, IT and innovation, we accelerate the growth of these participations both organically and via acquisitions. We also enhance their societal impact.

VEH has established an investment advice committee (IAC) which provides the Executive Board with solicited or unsolicited advice about the decision-making process related to the investments VEH aims to make. The IAC meets periodically. 

On 17 October 2023 we received the sad news that honorary member and former Executive Board member/director A.J.M. Lauvenberg had passed away. He made a passionate contribution to our cooperative for many years.

Former CEO/Executive Board member Edzo Doeve was appointed an honorary member during the general meeting of 27 January 2024.

The Supervisory Board has six members. All are part of the Supervisory Board of DELA Coöperatie UA, DELA Holding NV and DELA Natura- en levensverzekeringen NV.

J.W.Th. (John) van der Steen (1954), chair
Male, Dutch citizen. Appointed in 2019, currently serving second term. Function: professional supervisor, DGA Ansteen Holding BV. Other additional functions: chair of Supervisory Board of BinckBank NV, chair of Supervisory Board of Princess Sportsgear & Traveller BV, member of the Executive Board of Stadhold (Randstad) Insurances SA and Stadhold Reinsurances SA, member of Executive Board of Vereniging AEGON, Ambassador for Royal Concertgebouw Orchestra.

J.J.A. (Hans) Leenaars RA (1952), vice-chair
Male, Dutch citizen. Appointed in 2015. Currently in third term. Position: professional supervisor. Additional functions: member of Executive Board of Stichting John van Geunsfonds, chair of Supervisory Board of Stichting Het Klooster Breda, chair of Executive Board of Stichting Via Nobel, Chair of Advisory Board of ILFA BV.

G.C.A.M. (Frits) van Bree RA (1952), secretary
Male, Dutch citizen. Appointed in 2021 by members of the general meeting, currently in first term. Position: professional supervisor. Additional functions: council member of Vereniging Eigen Huis. 

W.A.P.J. (Willemien) Caderius van Veen RA (1959)
Female, Dutch citizen. Appointed in 2014 and now in third term. Position: professional supervisor, DGA Caadje BV. Additional functions: member of Supervisory Board of Unilever Nederland Holdings BV, chair of the Review Committee Pensioenfonds Lloyds Register Nederland, member of Supervisory Board of Woningcorporatie Trivire, member of Supervisory Board of Ondernemingspensioenfonds Capgemini, member of Supervisory Board of the Dutch foundation for liver and gastrointestinal research (SLO) at EMC Rotterdam, Executive Board member of STOER foundation in Rotterdam.

G.M. (Georgette) Fijneman (1966)
Female, Dutch citizen. Appointed in 2022, currently in first term. Position: chair of Executive Board of health insurance company Zilveren Kruis. Additional functions: vice-chair of Zorgverzekeraars Nederland, Executive Board member of Kansfonds.

G.H.C. (Georges) de Méris FCA (1961)
Male, Dutch citizen. Appointed in 2019 by members of the general meeting, currently serving second term. Position: independent consultant and professional supervisor. Additional functions: chair of Executive Board of Stichting AK Stop Diabetes Invest, member of Supervisory Board of Omroep Brabant, chair of Supervisory Board of Hy2Care BV, chair of Supervisory Board of Caelus BV, chair of Supervisory Board of Matisse BV, board member at Stichting SFO.

S.M.G. (Sandra) Schellekens – Lyppens (1965), CEO, chair
Female, Dutch citizen. Position in the DELA Group: CEO, chair of Executive Board (since 27 January 2024). Focal areas: strategy, internationalisation, general policy and DELA Belgium. Also Managing Director of DELA Netherlands since 27 January 2024. Appointment period: four years, starting on 27 January 2024. Additional functions: Supervisory director at Rabobank Regio Eindhoven and ZLM Verzekeringen.

J.A.M. (Jack) van der Putten (1959), CCO, vice-chair
Male, Dutch citizen. Position in the DELA Group: CCO, deputy chair of Executive Board (since 2010). Focal areas: strategy, membership, customer strategy and Voor Elkaar Holding. Also Director of DELA Netherlands (since 2010). Appointment period: indefinite. Additional functions chair of Stichting Onbeperkt Genieten.

J.L.R. (Jon) van Dijk (1957), CFRO
Male, Dutch citizen. Position in the DELA Group: CFRO, member of Executive Board (since 2014). Focal areas: strategy, finance, riskmanagement, tax and DELA Germany. Appointment period: indefinite. Additional function:  board member Stichting Derdengelden Muntenburg Advocatuur. 

An independent business segment management team is tasked with implementing the strategy, managing and providing management information for the consolidation of the group, dealing with formal/legal issues, and sound decision-making as defined in the statutes of the segment and the regulations. This management model ensures professional and well-balanced operations with proper checks and balances.

Voor Elkaar Holding and DELA Germany also operate largely independently with their own director who reports to the Executive Board of the DELA Group.

Another important aspect of acting with integrity is that employees can report misconduct (anonymously if desired) to all managers, our confidential committee or the chairman, after which the issue is investigated further. Specifically for Belgium, a legal obligation for companies with over 250 staff was implemented in February 2023 to establish an internal reporting channel where whistleblowers can report misconduct. This channel protects the identity of the person and any third parties involved, employing dedicated Whistleblower software: a user-friendly application that enables the secure exchange of information with maximum respect for privacy. Misconduct can be reported by (former) employees, but also by volunteers, managers, independent service providers, suppliers and subcontractors. External parties can submit a report via our website www.dela.be. Reports are always followed up by an independent party.  

In addition, we believe that acting with integrity includes paying our suppliers in good time. In the Netherlands we therefore apply a standard payment term of 30 days for paying invoices, and a 60-day term in Belgium. The average payment term in 2023 was 28 and 38 days respectively, complying with our policy. In return, we expect our suppliers to act with integrity too. Periodical due diligence research is carried out for new partnerships and existing contracts to see if there is (any suspicion of) misconduct, corruption or non-payment by suppliers down the chain.  

Risk management makes a direct contribution to long-term goals and provides an insight into the sensitivities and correlations of strategic, financial, operational and compliance risks to ensure that we can effectively address developments and take timely action to realise our goals and secure continuity of the organisation.

The figure above shows which risks are deemed important or less important. The overview is based on an estimate of the chance that a specific risk might occur combined with an estimate of the impact if that should be the case, taking into account the measures needed to limit the chance and/or impact.

With regards to strategic and financial risks, we are willing to accept uncertainty – as part of our business model – even when the potential benefits are uncertain. We apply a defensive attitude for integrity risks and aim to run few risks in this area. Our appetite for operational risks falls in between the two.

A detailed explanation of the risk categories we apply and the underlying risks is included in the financial statements.

A further clarification on the development of the financial risks (including the associated quantification) is included in the risk section of the financial statements.