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 statements 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. Changes in the value of investments in real estate are recognised in the income statement. If these changes in value are cumulatively positive, a revaluation reserve is formed and charged against the free reserves, taking into account deferred taxes. 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 these 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 these financial statements apply, based on the value at initial valuation.

Participations without significant influence are valued at the historical 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 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 convertible loans. 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. The loss is accounted for in the income statements if this proves to be the case.

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 agriculture & 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 historical cost.

The funeral centres owned by the funeral services entity are classified as property held for own use. They are valued at the acquisition cost minus any accumulated depreciation and, if applicable, impairment losses. Depreciation is based on the expected future useful life and calculated using a fixed percentage of 3 percent of the acquisition cost, taking into account any residual value. Depreciation starts from the moment the assets are put into use. No depreciation is charged on land. Periodic large-scale maintenance is capitalised using the component approach, with total expenditures allocated to the constituent parts.

Other tangible fixed property in own use are 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 an 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 tangible fixed assets including inventories and vehicles are included at the historical cost minus depreciations based on the expected tangible fixed assets 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 3.1 percent (2022: 3.7 percent) is applied to the long-term investment return and 2.0 percent (2022: 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 3.2 percent at the end of 2023 (2022: 3.7 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 2023 in the Netherlands was 19 percent over a profit of up to €200,000 and 25.8 percent for higher amounts. In Belgium the tax rate at the end of 2023 was 25 percent. In Germany, the applicable nominal value of 30 percent is taken into account.

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 statements 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 insurance as 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 into account at the moment of acquisition 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. Indexation has now been awarded for a number of years, with €33.8 million remaining available for future indexations. 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 DELA Sorgenfrei Leben 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 fair 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 DELA Activ Leben 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 are due, 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 statements 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 for funerals at the funeral company.

The composition of the capital requirement is shown in the table below. 

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) have increased, which has been largely compensated for by the mitigating effect of the profit share.

The core capital has decreased in 2023 due to developments related to interest rates, inflation and expected costs. The composition of the core capital is represented in the table below (amounts in € million).

As was the case last year, the core capital is almost entirely Tier 1 capital. All elements of Tier 1 are fully at DELA’s disposal. The Tier 3 capital concerns a net position of an active deferred tax position with the Belgian tax authorities.

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).

The financial markets partly recovered in 2023 from the fall in share prices in 2022. Interest rates increased over the course of the year compared to 2022, although the rate at the end of the year was lower. Inflation also fell.

The main developments with an impact on the capital requirement for market risks in 2023 were the growth of the investment portfolio and the improved mitigating function of profit sharing as the coverage ratio was not as far above the 210% limit.

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. DELA examines annually 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.

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).

Structure of underwriting risks

The underwriting risks increased. This is mainly a side effect of the lower interest rate and largely made up, as previously mentioned, by the improved mitigating function of profit sharing due to as the coverage ratio not being as far above the 210 percent limit. 

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 2023 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 annual 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 2023.

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).

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 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 and funeral homes) which were still in the portfolio at the end of 2023 had fallen by approximately 6 percent during the year. The market rent of these assets rose by around 2 percent. At the end of 2023 the total value of this portfolio was 11.6 times the market rent (2022: 14.4 times).

A positive result of €3.1 million 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 was externally evaluated in 2023. In 2022 the evaluation was based on the establishment costs as a period of less than five years is considered a start-up phase.

No real estate was under development on 31-12-2023.

The rental contracts of commercial real estate are drawn up based on ROZ model 2012. Around 15 percent of the contracts have a fixed term and are extended automatically if not terminated. Around 41 percent have a fixed term with an extension rule of five years, and others have various fixed terms (usually one or three years). Some 11 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 percent interest in Société d'Étude et de Service pour la Crémation NV;
• DELA Holding NV has a 18.4 percent interest in Neo Joule BV, which was set up to research various cremation methods;
• Voor Elkaar Holding NV has a 25 percent 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 percent;
• DELA Uitvaartverzorging NV has an interest of 25 percent in the funeral company Jelsumerhof Beheer BV

DELA Uitvaartverzorging NV sold its 20 percent interest in funeral company Stoppelenburg BV in 2023.

 The Right Meal BV was declared bankrupt in 2023, although the company has since been relaunched since. Out of prudence the position was depreciated pending settlement.

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 5.2.

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 7 weeks. 

Mortgage loans
The mortgage loans involve direct investments in mortgages, all provided with NHG accreditation. The fair value of the mortgage loans is €146.1 million. The fair value of the collateral for the mortgage loans at the end of 2023 was €335.8 million.

Other loans
Some €3.5 million of the loans were at a fixed-interest percentage of 3 percent on 31 December 2023. The security for these loans consists of a pledge on all outstanding shares in the relevant counterparty and a security deposit of €0.5 million.

In 2023 Voor Elkaar Holding NV (VEH) provided a convertible loan to Prikkl of €1 million. The payment over the loan amounts to a fixed interest of 6 percent and runs until 2027 when VEH will have the option to convert the loan into a share interest. In addition, there are two call options on shares included in the agreement. The value of the conversion right and the call options cannot be determined reliably so, for reasons of prudence, were valued at €0.

In 2023, VEH provided a convertible loan to Salarise of €0.9 million. The payment over the loan amounts to a fixed interest of 6 percent and runs until 2028. In 2028, VEH has the option to convert the loan into a share interest. As the value of the conversion right cannot be determined reliably, it was valued at €0 to ensure prudence.

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 & forestry funds
The infrastructure funds and agricultural & 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 have 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 70.1 percent (2022: 66.7 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 this section relate to the art collection, interests in non-listed private equity firm and a loan fund. The art collection is valued at cost price or lower market value; at the end of 2023 it amounted to €4.1 million (2022: €3.8 million). The market value of the private equity firms is based on the DCF method.

The loan fund is not listed and comprises investments in company loans. The valuation of the loan fund involves the fair value provided by fund managers. The fair valuation of the loan fund applies the standards in line with IFRS and US GAAP. DELA has determined that these standards only deviate marginally from DELA’s principles. The valuation is performed by an external assessor, and the fund provides us with an ISAE3402 Type II report. Before the financial statements of DELA Group are determined, DELA receives at least an audit report from the accountant, providing sufficient certainty regarding the reliability of the accounted valuations; a limited level of estimate uncertainty naturally present in the investments made by the fund remains.

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 31-12-2023 was €408.4 million (2022: €518.6 million). The value of the collateral is €421.8 million (2022: €536.2 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 (2022: 3 percent to 4.5 percent).

A reinsurance contract related to an inactive portfolio was redeemed in 2023. The associated deposit was refunded.

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 deposit fund is based annually on the ECB deposit interest rate on 31 December of the relevant year plus 0.75 percent, with a minimum of 2.5 percent to 6.0 percent a year depending on the starting date and deposited amount.

The interest rate for the deposit funds which were formerly part of (the acquired) Yarden deposits in 2023 was 0.44 percent (2022: 0.01 percent).

This involves loans entered into by subsidiaries with applicable interest rates ranging from 1 percent to 4 percent.

Of the monetary loans, €0.2 million has a term of less than one year, €1.6 million between 1 and 5 years, and €6.7 million a term of more than 5 years.

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 €0.1 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 entered into no new agreements for investments in infrastructure funds in this book year. At the end of 2023 the remaining investment obligations to various counterparties were €11.1 million and $43.3 million (which equals €39.2 million on the balance sheet date).

In 2023 DELA Group did not enter into any new agreements for investments in real estate funds. At the end of 2023 the remaining investment obligations were €76 million.

DELA Group came to an agreement with a counterparty in 2023 to invest €100 million in agriculture and forestry funds. At the end of 2023 the remaining investment obligations were €108.1 million and $57.7 million (€52.3 million on the balance sheet date).

DELA Group came to an agreement with a counterparty in 2023 to invest €200 million in a loan fund. At the end of 2023 the remaining investment obligations were €186.6 million.

There was no remaining investment obligation in ASR Hypotheekfonds at the end of 2023.

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

Fiscal units have been composed in the 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: