Our strategy
Our strategy
As the insurer within the DELA Group, DELA Natura focuses on the development and expansion of the cooperative's insurance activities. The origins of our company are rooted in using the power of solidarity to offer a dignified and affordable funeral for all, regardless of position or status. Established in 1937, DELA provides financial security and caring services as people say goodbye to their loved ones.
This is achieved by means of financial support. The profit we make is used for the premium. When things are less positive, we all pay slightly more premium. Solidarity is key to everything we do, enabling us to take advantage of the benefits together and provide mutual support. The name DELA reflects this, being short for Draagt Elkanders Lasten in Dutch – to carry each other’s burdens.
Mission
Solidarity and continuity are two interrelated and intrinsically linked starting points and goals, which we have translated into the following mission for DELA Group: “We use the power of solidarity to connect society, secure the continuity of the cooperative and care for each other.”
Ambition
DELA is an growing and thriving insurance company. We have remained loyal to the essence of where we started and this remains a prime aspect of our mission. At the same time, we are constantly evolving as we find new ways to broaden and give meaning to the principles of solidarity and continuity in the future.
DELA Group has the following goal: “In 2030 our cooperative will have strengthened the sense of solidarity within society.” We will realise this in various ways, including by growing as an insurance company, attracting new customers and retaining existing ones by increasing interactions and enhancing our relationships, which in turn promotes the sense of solidarity. To realise our ambitions by 2030 we want to broaden our activities.
We are also looking to grow further in Belgium, using the strength of the group to shape a strong and recognisable personal service and a sustainable, healthy business. We aim to be seen as a warm, reliable, empathic and inclusive company. In concrete terms, this means more and better (online) communication.
DELA Germany aims to solidify the current relationship with and services for the brokerage segment. In addition, we have clear growth ambitions for the German market, aiming to communicate directly with (potential) policyholders to show that we are experts in the field of after-care for the bereaved (‘Hinterbliebenenvorsorge’). We are also entering into various partnerships to give an additional impulse to the direct sales channel, for which we are currently setting up systems and teams.
We are making every effort to listen to our policyholders, communicating with them directly, understanding their needs and providing personal services and custom-made solutions. In the Netherlands this is achieved via direct distribution rather than using intermediary channels. This requires energy, commitment and input from all employees, along with good employership on our part.
Our national organisations maintain a focus on extensive cooperation among themselves. This includes partnering up with regard to the (IT) infrastructure, risk management, compliance with legislation & regulations and advanced HR and Finance programmes. We all benefit from the shared expertise and best practices, allowing us to better align products and services to local needs and preferences, while also utilising synergy opportunities.
Corporate Social Responsibility
DELA was established based on the strength of the collective and the concept of caring for one another. We want to take our responsibility in passing on a clean and fair world to future generations. To realise our ambition and in line with our mission, we make socially responsible choices. This means reducing our own CO2 emissions, using more eco-friendly materials and increasing the sustainability of our investments.
Our stakeholders
DELA Natura partners with a wide range of organisations and other parties on a daily basis. Together these groups are known as stakeholders. They all have a degree of influence on DELA Nautra and are in turn influenced by DELA’s core activities. Of course, our members, policyholders, bereaved and employees are amongst our stakeholders as are our regulators, partners, suppliers, local communities and government bodies. DELA is also part of various certifying bodies, networking organisations and interest groups, and embraces their codes of conduct. We apply to the highest standards such as data marketing privacy associations.
Our main stakeholders are reflected in the image below:
We frequently organise meetings with stakeholders to ensure the success of our core activities. These stakeholder dialogues are an integral part of our daily work and vary from customer-service discussions and periodic evaluations with partners and suppliers, to more formal meetings with, for example, regulators and the general meeting. They serve as a sounding board as we strive to continuously improve our current service provision and develop new services that further promote solidarity.
Our relationship with customers goes beyond policies alone, revolving around long-term connections. We use direct communication methods as well as periodic surveys. This approach has resulted in valuable insights into issues such as sustainable investments.
Our collaborations with partners and suppliers are based on an open dialogue and mutual understanding. Through regular meetings and exchanging ideas we aim to create a win-win situation. We are committed to our sustainability goals, how we address climate change and are prepared to achieve positive change together. Increasing legislation and regulations are making relationships with partners and suppliers more formal, requiring clear rules for cooperation. In this process we expect our purchasing department to play a leading role through its procurement and outsourcing policy to optimally support our business.
An open and transparent dialogue is crucial to reinforce mutual trust and guarantee corporate social sustainability. It allows us to continue to develop, maintain our relevance and enhance our impact.
Our environment
We are positioned at the heart of society and therefore societal developments can influence our activities and, on occasions, have a considerable impact.
Financial turbulence
There was a great deal of turbulence on the financial markets in 2023. This was partly caused by geopolitical unrest related to the escalating conflict between Israel and Hamas and the ongoing war between Russia and Ukraine. Despite these economic challenges, our investment portfolio managed a return of 4.6 percent. The core inflation (excluding food and energy) was higher than 4 percent in 2023. We also saw a slight increase in the number of payment schemes. We limit the premium increase via our profit-sharing scheme. In 2023, we were able to offer a record profit share of more than €249 million. We implemented a premium increase of 7.57 percent for the DELA Uitvaartplan in the Netherlands as per 1 January 2024. Without profit-sharing, the premium increase would have amounted to 12.18 percent.
Sustainability
The intensifying scarcity of resources and oil, the damage to the environment and the consequences of factors such as climate change on society are increasingly visible. We are also becoming more aware of sustainability, and the amount of related legislation and regulations is growing. DELA has been addressing the issue since establishing its first CSR policy in 2015: good progress has been made with sustainable investments and reducing CO2 emissions, although there is still more to do.
Challenges on the labour market
The labour market continues to be a challenge, with a shortage of personnel. As a good employer, we are maintaining the focus on our personnel policy, investing in employees and seeking flexible solutions. Following an employer reputation study, we further specified our campaigns and maintained a focus on fitness, good and flexible working conditions, absence due to illness, work training trajectories & development, and career opportunities.To enhance the labour potential, we have established leadership and talent programmes and started collaborations with social employment agencies and schools. We also set up a ‘Werkspot’ environment this year, an easily accessible way to bring people back to work more quickly after absence due to illness.
Digitisation
We see the trend for wide-ranging digitalisation continuing with insurers. In the insurance sector the focus is on ensuring user comfort for policyholders and employees, and the use of data for personalisation or direct sales. The Dutch multi-year programme ‘Digital Transition Insurance’ streamlines processes and makes them future-proof. The eventual migration to a robust system, linked to MijnDELA, will give members control over and access to their data. In Germany and Belgium we are using digital communication via partners and directly, while standardised digital connections support our strategic partnerships.
(New) legislation and regulations
Legislation and regulations, such as the CSRD (Corporate Sustainability Reporting Directive) and DORA (Digital Operations Resilience Act), promotes in which companies operate sustainable and robust. They are also making relationships with partners and suppliers increasingly formal. We started a new DELA-wide compliance and adjustment programme in 2023 called ‘Beheerst Ondernemen’ [controlled business] which helps us operate more proactively and work in a process-based way. This in turn will allow us to manage risks more efficiently and preserve our excellent reputation. It is supported by a culture of responsibility and continuous improvement. Risk management in fact rests on the behaviour of our employees.
Changing personal preferences
We are seeing a growing demand for managing funeral insurance policies online, including consultations and arranging funeral wishes. This option is increasingly used by our policyholders. We are also seeing a slow but steady rise in demand for sustainable funerals. Sustainability and addressing the consequences of climate change are always important pillars within our policy.
Materiality analysis
Materiality analysis
In 2022 DELA Group performed a materiality analysis of its impact on people and the environment and how DELA Group, in turn, is affected by its surroundings. This resulted in a list of 17 material themes.
In 2023 we moved forward in enriching these themes within the framework of the CSRD in accordance with a step-by-step plan provided by the NBA (The Royal Netherlands Institute of Chartered Accountants). The CSRD contributes to a clear focus and effective reporting of relevant sustainability issues, and allows DELA Group to present a sustainability strategy that is more in line with the expectations of its stakeholders and the CSRD requirements. It also enables DELA Group to make greater progress in the areas that matter most, which is in line with its goal to be a CSR business.
As a first step, the current stakeholders were analysed by an internal project group. This led to the conclusion that ‘nature’ needed to be added to the overview as a silent stakeholder and that our customers, employees and suppliers are the most important stakeholders herein.
We then looked at our value chain. Based on this, we determined which themes are potentially material. Of the themes on this shortlist, we mapped out the impact, risks and opportunities, and then calculated the average materiality score based on scale, range and probability. The threshold value to determine whether something is material was set at 3.0 on a scale of 5. Based on this value, the themes that score average or higher in their impact and/or financial materiality are considered material.
Eventually we reduced the number of materiality themes to seven. These were then redefined to underline their internal and external relevance even more clearly. The themes and the materiality analysis were established on December 2023.
Below you can find a brief clarification of the seven materiality themes.
Climate change
The theme climate change involves the contribution to a transition to a CO2 neutral economy. While DELA Group still produces net CO2 emissions, our goal is to comply with the Paris Climate Agreement and reduce emissions in our own operations and among suppliers. Main aspects include the electrification of cremation furnaces and transport, working toward energy-neural buildings, installing solar panels and purchasing green energy. We also focus on climate adaptation, honing in on flood risks at our funeral locations and other physical risks caused by extreme weather. In addition, DELA Group anticipates transition risks such as the limited availability of resources and limited capacity of the national electricity grid.
Sustainable material use
Although DELA Group does not produce any products itself, we do use resources in our service provision such as wood (for caskets and paper), flowers, coffee and tea (for catering), and wool and cotton (for company clothing). DELA Group also uses company assets such as our company cars, buildings and office environment. The right suppliers are selected to help realise the sustainability ambitions, working closely together to ensure an environmentally friendly composition, production and supply of goods and services. Active efforts are also made to reduce the amount of residual waste produced.
Good Employer Practices
Employees make the difference. Where our core values – Engaged, Honest and Proactive – are leading we also aim to be good employers for all staff when it comes to working conditions, equal treatment and opportunities, and guaranteed privacy. A contribution to the wellbeing of employees is made by ensuring a fair and transparent pay policy, a good work-life balance, and a healthy working environment in which people can develop and feel respected and accepted. At the same time, we recognise that we ask employees to have a high level of commitment and that this can disrupt the work-life balance and increase the pressure of work. This is something we monitor closely in addition to diversity, equality and inclusion. We also work on preventing health issues and absence caused by mentally or physically stressful work.
Personal services for members and customers
DELA Group offers broad support in the field of ‘saying goodbye and remembering’ which goes beyond financial support. Personal service provision is aimed at the emotional and personal needs of our policyholders and the bereaved. DELA Group also offers practical support and financial peace of mind. Our customers can rely on us to take care of their guaranteed right to privacy and protect their personal data. The development of new services in our domain further enhances the wellbeing of policyholders. It promotes long-term relationships and trust as well as solidarity. We see the provision of new services as an opportunity, while being aware that it comes with (acceptable) financial risks.
New services to strengthen solidarity
New services include participations and investments in companies that promote solidarity and a sense of unity in society via Voor Elkaar Holding. This was established to be a part of and make investments in companies that promote solidarity and cohesion in society, taking the scalability and financial health of these companies into account. Specific attention is paid to support for informal caregivers and providing financial guidance. These kinds of initiative are designed to improve people's well-being, which then strengthens the continuity of the cooperative model and helps us make a meaningful contribution to a closer society.
Acting with integrity
We recognise the risks associated with acting without integrity and the consequences doing so may have on our organisation. As a buyer, employer and service provider, we are determined to prevent misconduct. We realise this by having a company culture which states that acting with integrity is the responsibility of every employee, that interactions with internal and external stakeholders follow our code of conduct, that we only work with suppliers who also comply with these practices, that we protect whistleblowers and safeguard our systems for the detection of corruption and bribery.
Sustainable investments
As an investor, DELA has an impact on people and the environment by providing various parties with capital. This can be a positive impact – for example when it involves parties which enhance air/soil/water quality – or a negative impact – because parties produce net CO2 emissions, pollute the environment or contribute to the loss of biodiversity. It is our goal to reduce any negative impact on people and the environment and increase our positive impact. Our strategy involves maintaining a dialogue with companies (engagement), actively using our right to vote, integrating environmental, social and governance aspects (ESG) in investment decisions, excluding specific practices and countries and impact investments.
Our significance
Broad financial and service provision allows us to support policyholders in word and deed. We take an engaged, honest and proactive approach to protecting the various interests at play. The value creation model we have adopted from the DELA Group 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. The various entities determine their own specific focal areas based on this model.
Our customers
Our customers
As one of our primary stakeholders we offer policyholders financial security. Insurance is our core business. We are active in the Dutch, Belgian and German markets with insurance products.
Customer satisfaction and reputation
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.
DELA Natura measures satisfaction levels 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 is at a high level. The main positive feedback was the fast and adequate response and personal attention. Keeping up the knowledge levels of our employees and proactively keeping customers informed where possible remains important. In Germany, we were able to improve satisfaction among brokers by being more proactive and providing support services to this segment.
Customer satisfaction
Net Promotor Score, 12-month average, weighed by respondents.
| 2023 | 2022 | |
|---|---|---|
| NPS | ||
| Netherlands | 43 | 45 |
| Belgium | 59 | 60 |
| Germany | 53 | 51 |
| Total* | 53 | 53 |
DELA Natura has a robust and strong reputation and our activities are partly focused on maintaining and strengthening this. The reputation is measured by the DELA Group and the results also apply for DELA Natura as we use the same brand name.
We have a good reputation, especially in the field of providing financial support. In Belgium, a strong content and PR plan contributed to the continued growth of our reputation.
Reputation score
| 2023 | difference | 2022 | |
|---|---|---|---|
| Netherlands, Stakeholderwatch pulse | |||
| Members | 78 | +1 | 77 |
| Non-members | 66 | +6 | 60 |
| Total | 72 | +6 | 66 |
Insurance
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 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.
Number of policyholders per product at the end of the year and growth in reporting year
| 2023 | net growth | 2022 | |
|---|---|---|---|
| Uitvaartplan (funeral insurance) | 3,054,061 | +27,757 | 3,026,304 |
| Leefdoorplan (life insurance) | 280,761 | -5,097 | 285,858 |
| Spaarplan (savings insurance) | 53,157 | -1,979 | 55,136 |
| Yarden | 908,593 | -19,470 | 928,063 |
| Total Netherlands | 4,296,572 | +1,211 | 4,295,361 |
| - | |||
| Uitvaartzorgplan (funeral insurance) | 677,748 | +34,062 | 643,686 |
| Inactive portfolios (closed book) | 272,540 | -11,803 | 284,343 |
| Total Belgium | 950,288 | +22,259 | 928,029 |
| - | |||
| Aktiv leben (life insurance) | 103,366 | +12,897 | 90,469 |
| Sorgenfrei leben (funeral insurance) | 65,549 | +19,366 | 46,183 |
| Inactive portfolios (closed book) | 125,458 | -3,962 | 129,420 |
| Total Germany | 294,373 | +28,301 | 266,072 |
| - | |||
| Total | 5,541,233 | +51,771 | 5,489,462 |
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 will start in 2024 to realize this plan.
While net growth in life insurance policies was negative in the Netherlands both the growth and losses were better than expected.
DELA Netherlands stops intermediary channel
In September we announced that we would be fully focusing on direct distribution, changing the cooperation with the intermediary channel. The goal of the strategic decision is to strengthen the relationship with policy holders and broaden our personal service provision. Opening new insurance policies via the intermediary channel is no longer possible, although we are continuing to provide services for the existing insurance policies entered into via intermediaries.
As a result of 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.
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.
Our organisation
Our organisation
Employees are the driving force behind our organisation, vital to our service provision and societal significance. In the framework of good employer practice, we invest in people to ensure they are engaged, proud of their work and healthy, as well as having ample opportunities for personal development. At the end of 2023 DELA Natura had 715 employees (623 FTE). Committed, enterprising and acting with integrity, they work tirelessly to realise our mission in three countries. Our core values are deeply rooted at the heart of our organisation and underline our relationship with each other and with our stakeholders.
We use digitisation to bring people even closer together. One of our goals is to reduce our negative impact in terms of climate change by lowering our carbon footprint.
A number of adjustments were made in 2023 to enable us to do even more for our customers. Three innovation teams were set up In the Netherlands to offer new products and services. In Belgium we worked hard on having a more efficient and results-oriented collaboration between IT and the rest of the organisation. A number of departments have been reorganised in Germany, with the main goal being the integration of the German insurance portfolio (acquired in 2022) and its employees.
Our employees
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. When personnel changes occur, we always take increased diversity into account.
Employee satisfaction
DELA Group measures satisfaction levels among all our employees every year. In 2023, this survey was carried out via Effectory. The response rate in the Netherlands was 76 percent, which is virtually the same as last year, while no less than 84 percent of staff completed the survey in Belgium. The survey focused on various themes such as enthusiasm, employership, team leadership and social safety.
The solid foundation for good employership remained in 2023, as is shown by the fact that the eNPS scores were still above the benchmark. In the Netherlands this was +36.2 and in Belgium the score was the same as in 2022, namely +53. The survey was used in Germany for the first time and 84% of employees took part. In Germany, the methodology and scale differ from the measurements in the Netherlands and Belgium. The German employee satisfaction score of 8 is in line with the benchmark, which was 9 in 2023.
| 2023 | 2022 | |
| Effectory eNPS | ||
| Netherlands | 36 | 44 |
| Belgium | 53 | 53 |
| Germany | 8 | |
| Total | 38 | 45 |
We have a strong company culture 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.
Diversity, equality and inclusion
We find it important that people feel welcome in our organisation as a customer, employee and supplier regardless of their background. We want to be there for and actively support everyone. In 2023 it was decided to address this theme under the auspices of the HR department, and a group-wide plan of approach was developed based on diversity, equality and inclusion for DELA as an employer. We are also starting a diversity assessment as a basis for follow-up actions.
DELA Natura has set the goal for all employees to remain physically and mentally healthy and capable of carrying out their work, both now and in the future. Absentee levels are high and the trend for an increase in long-term absence has continued. In addition, seasonal peaks due to flu-like illnesses pose another challenge in an already tight labour market.
Absence
Absenteeism over 2023 was 3.9 percent in the Netherlands (2022: 4.6 percent), 5.4 in Belgium (2022: 5.5 percent) and 6.7 percent in Germany (2022: 5.7 percent). These relatively high levels required extra efforts from our advisors (such as Health & Safety) and HR Business Partners. We successfully drew more attention to registering for a training course related to promoting and stimulating employees’ self-management and health (‘Eigen Regie en Duurzaam in Gesprek’). In the Netherlands efforts were also made related to the implementation of the Eligibility for Permanent Incapacity Benefit (Restrictions) Act (Wet Verbetering Poortwachter) in order to stimulate meetings between managers and employees.
Various initiatives have been started to further reduce absenteeism as quickly as possible, such as training sessions for ‘mental resilience’ and ‘safety at work’. The ‘vitality budget was regularly promoted and we will continue to focus on reintegrating employees who have been ill for a long time. It is sometimes difficult to find replacement tasks for employees who have been absent and cannot yet perform their own tasks. This especially applies if suitable tasks are unavailable, which causes further delays. Offering/taking up adapted activities ensures that employees retain the working rhythm that make further reintegration easier. We have created the programme Werkspot to link this supply and demand.
Staff turnover
The total turnover for the DELA Group over the past year was around 14 percent and this issue is a fixed agenda item for the various management teams. We have implemented a number of improvements to enhance the quality of the recruitment and selection process and recruit the right candidates for the job. Proper ‘onboarding’ and guidance of new staff on the work floor is another key aspect. In the Netherlands, the ‘labour market taskforce’ looked at how attractive our working conditions were. This led to the further development and approval of the mobility policy. 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 the 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.
Employer reputation survey
Both name familiarity and a good reputation are important in the recruitment process. These aspects were assessed in relation to DELA as an employer in the Netherlands with independent research bureau Motivaction. The results showed that DELA’s appeal as an employer had increased significantly over the past two years, with the labour market campaigns clearly having an effect. The reputation of DELA as an employer was enhanced on nine aspects including people-oriented culture, job safety and reliability/honesty. A point of attention was opportunities to grow within the company – although there, these need to be made more visible and aligned to other employers.
Role of the works council
DELA Netherlands and DELA Belgium each have their own works council at the DELA Group level that is actively involved in economic and social issues and provides advice on the desired business operations. The works councils represent all employees.
The Dutch works council gave advice on various topics in 2023. The organisational changes and set-up of innovation teams designed to offer added value to our members dominated the agenda. The works council also provided advice on the appointment of a new Executive Board chair due to the retirement of her predecessor in January 2024. Other subjects discussed by works council members included the ‘Controlled Business’ (Beheerst Ondernemen) programme and ending cooperation with the intermediary channel. They also debated the ‘reporting suspected misconduct’ scheme. In addition, the works council gave input on changes to the remuneration for travel expenses, a training course for new managers and changes to the available options for keeping employees mentally and physically fit. Finally, regular meetings were held about the quarterly figures, working conditions and pensions.
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.
Strong leadership
In September, the managers in Belgium attended the kick-off of a leadership programme aimed at promoting corporate culture and increasing organisational effectiveness and ownership.
Digitisation
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 and we are continuously expanding our knowledge. At the same time, we’ve developed a policy to help employees 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 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 Moneta 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.
CO2 reduction
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 Natura applies the policy of the DELA Group, looking to reduce its 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.
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. 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 calculation method explained
Since 2021 we have determined the CO2 emissions of our own operations and for the products and services provided at the DELA Group level. In addition to direct emissions under scope 1 and 2, we also strive to gain the best possible insight into our scope 3 emissions (indirect CO2 emissions caused by the activities of other parties up- and downstream in the chain). These indirect emissions have a considerable impact. The increasing transparency of and collaboration with suppliers means we expect to implement further refinement in determining our scope 3 emissions in the coming years.
The following items are included in the calculation:
Scope 1 (direct emissions):
- Natural gas and mazout (fuel oil) in buildings
- Lease vehicles and owned vehicles - petrol
- Lease vehicles and owned vehicles - diesel
- Leakage of refrigerants
Scope 2 (indirect emissions):
- Electricity in buildings and cremation furnaces
- Lease vehicles and owned vehicles - electric
- District heating
Scope 3 (indirect emissions, categorised in accordance with GHG protocol):
- Purchased goods and services: caskets, printing, paper, flowers, catering, tombstones, data centres
- Rented transportation: hearses and funeral vehicles in the Netherlands
- Business travel: travel by air, repatriation, public transport, use of private vehicle for business
- Employee commuting
- Visitor transport
The calculation is based as much as possible on actually measured consumption data, namely 66 percent of the data points. Substantiated estimates are used when this is unavailable.
CO2 emissions
Net, excluding investments
| x 1 tonne | 2023 | difference | 2022 |
|---|---|---|---|
| Scope 1 | 10,261 | +5,741 | 4,520 |
| Scope 2 | 694 | -1,478 | 2,172 |
| Scope 3 | 24,332 | +758 | 23,574 |
| Total | 35,287 | +5,021 | 30,266 |
| Netherlands | 25,489 | +3,419 | 22,070 |
| Belgium | 9,748 | +1,618 | 8,130 |
| Germany | 50 | -16 | 66 |
| Total | 35,287 | +5,021 | 30,266 |
The CO2 emissions of the DELA Group 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 (927,000 kWh) for charging lease vehicles was added to the calculation based on grey power as these often use external chargers (226 tonnes of 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. 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 are also focusing on indirect emissions related to our value chain (scope 3), especially on the products and services we purchase. To reduce emissions in this scope we implemented active strategies in relation to our suppliers, with a key strategy aimed at reducing their scope 1 & 2 CO2 emissions. We support suppliers 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.
Sustainable material use
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 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 UN’s 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. We specifically focus on sustainable material use when entering into new contracts.
Our finances
Our finances
DELA Group is focused on offering certainty, care and continuity rather than maximising profits. Our policyholders can look forward to the future with as few concerns as possible and a stable pay-out based on a premium that is kept as low as possible. We aim for an optimum balance between investments, profit sharing and solvency. Our financial position is exceptionally strong, allowing us to ensure a funeral policy that holds its value.
Income from premiums
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 (2021: 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 Moneta portfolio acquired at the end of 2022.
Premium income after deduction of reinsurance premium.
| Amounts x €1,000 | 2023 | difference | 2022 |
|---|---|---|---|
| Netherlands | 480,749 | -6,860 | 487,609 |
| Belgium | 161,889 | +15,800 | 146,089 |
| Germany | 70,063 | +34,750 | 35,313 |
| Total | 712,701 | +43,690 | 669,011 |
Operating result
The operating result is the result achieved from our core activities, not including exceptional income and expenses, profit sharing and taxes. The operating result of DELA Natura for 2023 amounts to €76.1 million, an increase of 5 percent compared to 2022 (€72.2 million).
| Amounts x €1,000 | 2023 | difference | 2022 |
|---|---|---|---|
| Premium income | 712,701 | 7% | 669,011 |
| Interest accrued from technical provision | 189,851 | 6% | 178,841 |
| Underwriting costs | -657,284 | 7% | -616,002 |
| Technical margin | 245,268 | 6% | 231,850 |
| Operating expenses | 155,537 | 10% | 141,906 |
| Acquisition costs | 13,622 | -23% | 17,746 |
| Operating result | 76,108 | 5% | 72,198 |
Investment result and policy
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 €365 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.
Sustainable investments
DELA takes the issue of social responsibility very seriously and that certainly extends to our investment policy. Legislation and regulations, social developments and the wishes of our members are taken fully into account. We also integrate climate scenarios in the periodic ALM studies to gain an insight into their impact on the long-term development of our assets.
While we obviously strive to achieve the best return on our investments, we also monitor the societal changes we can support with those investments. We believe that profitability and sustainability go hand in hand: businesses that focus on sustainability in their policy and management are often more stable and financially healthier with a better risk awareness.
It is our ambition to reduce the net CO2 footprint of our investments by 50 percent in 2030 compared to 2019. We assess new initiatives and investment opportunities based on this goal and always consider how they might contribute. Determining and comparing CO2 emissions is a challenge as data comes from various providers and external capital managers. Moreover, not all companies we invest in report on their CO2 emissions.
The number of companies publishing non-financial data such as on emissions is growing, however. We are currently monitoring the supplied data, with the aim of using the same source as much as possible to enable accurate comparisons The CSRD legislation is expected to further improve the availability and quality of data. We are currently having discussions with our external capital managers to compile a unilateral report on non-financial data including CO2 emissions.
Legislation and regulations serve as the foundation for sustainable investments. DELA Cooperative has followed the Principles for Responsible Investment (PRI) since 2015. Recognising that the DELA Group can further increase its impact by working with other major investors, we have an ongoing dialogue with various parties, including the Dutch Association of Insurers. DELA’s investment policy also takes into account the standards of the United Nations, such as the Global Compact Principles and Guiding Principles, as well as the OESO guidelines for multinationals and the Sustainable Development Goals (SDGs). By endorsing standards like the Global Compact Principles and OESO guidelines, we expect the companies in which we invest to align their activities and strategies with ten universally accepted principles related to human rights, labour, the environment and anti-corruption.
To encourage energy efficiency in our real estate and infrastructure funds, we use the Global Real Estate Sustainability Benchmark (GRESB). This is an independent assessment of worldwide real estate funds and portfolios which compares sustainability performances. In our accounting we use the guidelines of the Task Force on Climate-related Financial Disclosures (TCFD). Since 2022 DELA is also reporting based on the EU Taxonomy. Designed by the European Commission, the system makes clear which activities can be designated and labelled as sustainable.
Sanctions legislation has an impact on the investment portfolio. Companies and countries that violate international legislation, sanctions and guidelines in the field of sustainability are excluded. Nor do we invest in companies involved in the development, production or maintenance of a number of controversial weapons. We also exclude companies that generate a substantial part of their turnover from the following sectors:
- Tar sands
- Coal
- Shale energy
- Oil & gas extraction on the North Pole
- Tobacco, fur & special leather
- Predatory loans
- Whale meat
- Assault weapons for private buyers
- Recreational cannabis
We see sustainable investments as an essential topic in all decisions made. ESG is always immediately included in the selection and monitoring of asset managers as we believe it is extremely important that they are intrinsically motivated to include ESG in all aspects of the investment processes. We also have a number of general starting points for sustainable investments which reinforce the aspects we find most important. Various other instruments are deployed in this framework in addition to the aforementioned exclusion of companies and sectors.
Engagement
We maintain a dialogue with companies in which we invest in order to influence their approach to sustainability, stimulate the implementation of environmental improvements and mitigate sustainability risks. To realise our engagement and voting policy we work with a professional partner that was selected for having an approach and goals that are in line with our ambitions. This party helps us determine new engagement priorities on an annual basis, how to vote at annual general meetings of shareholders and ways to cooperate with other investors or stakeholders. These priorities are determined in close consultation with other clients.
By outsourcing engagement and proxy voting to a professional partner, invested capital from multiple (institutional) investors is combined. The larger collectively invested capital is then used in engagement initiatives. Joining forces means we can have an even greater impact, which in turn encourages companies to manage their operations in a responsible way on behalf of society and the environment.
Voting rights
We have our own voting policy which entails that we exercise our right to vote in as many shareholder meetings of the companies in our investment portfolio as possible. An active voting policy is part of the dialogue with these companies. We also enter into discussions with other major investors where we wish to see improvements in the field of ESG.
Sustainable investments
We make investments when we see opportunities in specific sustainable investments or funds.
Activities in 2023
In early 2023 we organised an inspiring round-table meeting on the subject of impact investing after a previous consultation of members indicated a desire to learn more about the subject. The participants gained various insights that contributed to a broader vision on the opportunities and challenges of impact investing. These include the importance of having a good definition of impact investing in order to make the right choices. Impact investing comprises three components: intention, return and measurability. A major challenge experienced when making impact investments is finding the right balance between financial return and social impact. Although Key Performance Indicators (KPIs) are useful, it is crucial to remember that the story behind the company and the performance in achieving goals really matter. This is why it is important not to get lost in indicators. The joint conclusion of the meeting was that cooperation is of the essence. By joining forces with investors, companies and social institutions, we can have a greater impact and help realise sustainable change.
Consultations also showed that members find it inappropriate to invest in the gambling industry, which is not in line with the societal impact we aim to have or the spearheads of VEH. In 2023 we therefore had various internal meetings to discuss this further, and eventually decided to add this sector to our exclusion list next year.
We also decided to start investing in forestry. The reason to expand our investment portfolio in this way is threefold: returns, diversification and sustainability. We initiated a selection trajectory in 2023 and selected a manager after an extensive due diligence process. The first investments in forestry are expected in early 2024.
As part of our (engagement) dialogue with companies we spoke with 380 businesses in the share and company bond portfolio in 2023. The main topics of discussion were climate change and corporate governance, and we achieved a desired result 114 times. We exercised our right to vote in 3,162 shareholder meetings and in 16 percent of cases voted against. This mainly involved issues such as administrative matters and remuneration. In late 2023 we had excluded 557 companies and 19 governments/countries.
DELA holds the tenth spot in the VBDO benchmark, which compares the sustainable investment policy of Dutch insurers. There are several focal points: the call to work with institutional investors, NGOs and governments is growing; developments are also progressing quickly, which requires broad knowledge acquisition; and the requirements regarding transparency and accounting are increasingly strict
Development of technical provisions
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.
Coverage ratio
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 inf lation 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).
Coverage developments in %-points:
| Start of year | Dampening effect | Enhancing effect |
Year-end | |
|---|---|---|---|---|
| Start of year | 234% | |||
| Lower interest rate | -19% | |||
| Increase in expected costs | -6% | |||
| -25% | ||||
| Developments in insurance portfolio | 4% | |||
| Decreased inflation | 4% | |||
| Investment result | 3% | |||
| Other factors | 0% | |||
| 11% | ||||
| Year-end | 219% |
The average coverage ratio during 2023 was 251 percent. This high ratio led to a high profit share.
Stable pay- out for funerals
The average coverage ratio in a year (partly) determines the profit distribution scheme for the following year for all such products in the Netherlands, Belgium and Germany.
We aim to offer members an inflation-proof funeral. Funeral costs rise over time due to inflation. Premiums are also increasing due both to inflation as well as back-service costs. When funeral costs increase during the term of the funeral insurance, the amount paid in over the underlying years is based on an insurance value that was too low. This difference must be made up for in the future, a correction called a back-service. In principle, therefore, an increase in funeral costs leads to a higher percentage increase in the premium, one which we strive to limit using profit distribution.
The amount being shared depends on inflation: the higher the inflation rate, the higher the back-service and the greater profit we aim to share in principle. There are certain limitations to the extent to which profit distribution can be used in a year, one of which is determined by the average coverage ratio over the past 12 months. If the average coverage ratio is 210 percent or higher, the profit will be distributed. A coverage ratio of between 120 percent and 210 percent leads to a partial distribution of profit. Under 120 percent no profit is distributed. If the 20-year interest rate drops below 1 percent and the coverage ratio is lower than 120 percent, a premium measure (additional premium increase) will be applied.
Profit sharing
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.
| Amounts x €1,000 | 2023 | 2022 | 2021 | 2020 | 2019 |
| Granted | 249,224 | 43,654 | 5,940 | 42,994 | 42,323 |
DELA has awarded profit sharing worth €574 million in total over the past ten years.
Premium adjustment
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, profit sharing and the 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 the profit share 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.
Solvency ratio
DELA Natura 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 221 percent to 207 percent at the end of the year and is still considered robust.
Due to developments in investment returns, the asset mix, interest rates, inf lation and volatilities, the Solvency II ratio decreased by 7 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 of DELA cooperative resulted in an increase of the ratio by 9 percentage points. Other developments, such as a depreciation of the deferred tax assets and higher future costs, led to a decrease of 7 percentage points.
The development of the solvency ratio in % points:
| Start of year | Dampening effect | Enhancing effect |
Year-end | |
|---|---|---|---|---|
| Start of year | 221% | |||
| Adjustment of economic parameters (interest rates, inflation, volatility), asset mix, investment results | -7% | |||
| Lower expected funeral cost inflation | -9% | |||
| Other developments | -7% | |||
| -23% | ||||
| Adjustment of premium measure policy | 9% | |||
| 9% | ||||
| Year-end | 207% |
Our governance
Our governance
Corporate governance involves due diligence, proper supervision and transparent accountability. Solidarity and the long-term interests of our customers are central to all we do. The associated risks are carefully monitored and opportunities identified. DELA’s strength lies in its cooperative structure, entrepreneurship and the resilience to address risks and make the most of opportunities. This strength is based on our mission, core values and assets, high-quality and honest business and the principles of a learning organisation.
Corporate governance
Governance charter
The governance structure is detailed in a governance charter.
This ensures that we comply with decrees and regulations based on European legislation such as Solvency II, the General Data Protection Regulation, the Digital Operational Resilience Act (DORA) and the Corporate Sustainability Reporting Directive (CSRD), along with national legislation and regulations like the Dutch Financial Supervision Act, policy regulations and best practices from regulators and the Code of Conduct for Insurers. Our company culture is another major component herein.
Our governance charter is evaluated on an annual basis and was last adapted at the end of 2022.
Legal structure
DELA Coöperatie U.A. (hereafter: 'DELA cooperative') is a cooperative for members with the following purposes:
- supporting members in word and deed by serving the interests of its members;
- ensuring policyholders and co-insured a dignified and affordable funeral;
- promoting the reputation of the life insurance market and the funeral sector.
DELA Cooperative 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.
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.
Permits and supervision
DELA Natura is supervised by The Netherlands Authority for Financial Markets (AFM) and Dutch central bank (DNB), and is registered under licence number 12000437. The Chamber of Commerce registration number of DELA Natura is 17078393.
DELA Belgium carries out insurance activities which are accommodated by the Dutch company DELA Natura, and funeral activities that are part of Belgian companies. Other activities in Belgium take place within the entity DELA Enterprises NV. The insurance activities are carried out under the licence issued by DNB and prudential supervision activities are also overseen in Belgium by DNB. With regard to the supervision of conduct, DELA Belgium is accountable to the Belgian Financial Services and Markets Authority (FSMA).
The insurance activities in Germany take place via a branch office in Düsseldorf (article 2:115 Dutch Financial Supervision Act), with an emphasis on marketing and sales. Other financial and actuarial activities are carried out at the head office of DELA Natura in Eindhoven. The insurance activities and prudential supervision in Germany come under the license issued by DNB with supervision of conduct provided by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin).
Supervisory Board
The Supervisory Board consists of at least five and at most seven natural persons as determined by this Board. If possible, two members will also be (replacement) members of the general meeting. The composition of the Supervisory Board is such that the combination of experience, expertise and independence of its members meets the Supervisory Board profile and allows it to perform its various duties. The members are appointed by the general meeting based on the suggestion of the Supervisory Board of DELA cooperative.
The tasks and duties of the Supervisory Board include overseeing, monitoring and providing advice to the Management Board on:
- realisation of the goals of the company;
- the strategy and risks related to its activities;
- the setup and functioning of internal risk management and control systems;
- the financial reporting process;
- compliance with legislation, regulations and the risk policy.
In addition, it is responsible for:
- compliance with and enforcement of the corporate governance structure;
- approving and adopting the financial statements, budget and material capital investments;
- selecting and appointing the external accountant and auditor;
- approving the risk tolerance;
- determining the remuneration policy.
The Supervisory Board evaluates the remuneration policy and the functioning of the Management Board. The chair is the point of contact for any alleged irregularities regarding the functioning of Management Board members.
In fulfilling its duties, Supervisory Board members focus on the interests of the company and its associated companies. They carefully consider the interests of the various stakeholders of the company in doing so, including members and employees. The Supervisory Board itself is responsible for the quality of its own functioning.
Regulations
The Supervisory Board has internal regulations that provide rules for its decision-making process. They serve as a supplement to the regulations and guidelines that apply to the Supervisory Board based on Dutch legislation and the company’s statutes.
Appointment and term
Each Supervisory Board member is appointed for a period of up to four years and can be re-appointed twice. The final four-year term will consist of two two-year periods with an interim evaluation. A member will step down at the latest after the first general meeting of shareholders held after four years have passed since their last appointment. A member who is stepping down can be reappointed immediately, insofar as the maximum term of 12 years is not exceeded.
Committees
The Supervisory Board has an audit committee, risk committee and a remuneration and appointment committee.
Participations
The members of the DELA Supervisory Board are also appointed as Supervisory Board members for DELA Holding NV and DELA cooperative. The establishment of a Supervisory Board for DELA Natura was compulsory to meet the requirements of the Dutch Financial Supervision Act.
Personal details of the Supervisory Board
The Supervisory Board has an audit committee, risk committee and a remuneration and appointment committee.
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.
Management Board
DELA Natura has a Management Board which consists of a number of natural persons. With the exception of limitations indicated in the statutes, the Management Board manages the company and its capital. The Management Board can determine which special tasks will be assigned to which of its members. The task distribution must be approved by the Supervisory Board.
Personal details of the Management Board
DELA Holding NV, represented by S.M.G. (Sandra) Schellekens – Lyppens (1965), director
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.
Ir. J.A.M. (Jack) van der Putten MMO (1959), director
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 RA (1957), director
Male, Dutch citizen. Position in the DELA Group: CFRO, member of Executive Board (since 2014). Focal areas: strategy, finance, risk management, tax and DELA Germany. Appointment period: indefinite. Additional function: board member Stichting Derdengelden Muntenburg Advocatuur.
Investments
The investment activities are run from the Netherlands. DELA Natura has an investment advisory committee (BAC) which has an advisory and evaluating role to the Management Board on investments. In addition, it is asked for advice regarding policy proposals, policy changes and the implementation of policy in this field. If the committee’s advice is ignored by the Management Board, the Management Board must report this to the Supervisory Board. The investment advisory committee has an explicit advisory role and evaluates whether proposals are consistent, comprehensive and sound with regard to return, risk and sustainability. The Management and Supervisory Board maintain their own responsibilities. The investment advisory committee is composed of at least three external members who are appointed by the Supervisory Board as proposed by the Management Board.
Acting with integrity
We find it important to have a consistently professional and well-balanced business with appropriate checks and balances within the right culture. The culture is characterised by the values of engagement, integrity and entrepreneurship. The Management Board is responsible for ensuring adequate guarantees with regards to ethical business operations.
An important part of our integrity policy is to ensure that every employee acts with integrity, which means being respectful, transparent and reliable.
To further define the term, a code of conduct was published for employees in the Netherlands which includes the underlying rules employees should follow to enhance their integrity on various focal areas. The rules are set out on issues such as conflicts of interest and corruption, undesirable behaviour, reporting malpractices, unauthorised competition and private investment transactions. The code of conduct and underlying rules are based on Dutch legislation and regulations. DELA Belgium has an integrity code with underlying rules which are focused specifically on the Belgian situation and market, including legislation. DELA Germany has written a handbook related to acting with integrity based on the Dutch code of conduct and in accordance with German legislation.
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 of DELA, 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
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.
In practice
DELA applies the ‘three lines of defence’ model for the setup of the management and control of risks:
- The first line is primarily responsible for realising the formulated goals of the company and the demonstrable realisation of internal control measures and effective risk management. Responsibilities of the first line include the operations, results, definition of risk appetite, management and compliance with internal control measures;
- The second line provides advice, coordinates, safeguards and evaluates – independently from the first line – whether or not the first line is actually taking responsibility and operating within the risk tolerance of DELA;
- The third line ensures additional assurance of the quality of internal control via audits.
The independence of the second and third lines is an important starting point to ensure this model functions properly, which is why it is safeguarded. The overview below shows a schematic representation of the model.
Process
We follow a process for risk management that ensures an insight into the main risks and opportunities in all circumstances. Opportunities, risks and applicable control measures are always carefully weighed. The risk management process is continuous as summarised in the following figure.
Identifying risks
Risk identification is primarily the responsibility of the first line. The second line periodically analyses the risks identified by the first line and supplements them where necessary, with a special focus on upcoming risks. This analysis is then discussed in meetings between the second and third line.
Below is a summarised risk profile for DELA Natura. Further details of the risk categories included can be found in the risk section of the financial statements.
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.
Determining risk appetite and limits
The Management Board evaluates the risk profile every year based on predetermined operational goals and the capacity of the company. In addition, the Board determines the risks DELA as an organisation is prepared to take – based on its risk profile – to achieve its strategic goals, in line with its risk appetite. In addition to the intended goals, it is essential that the continuity of the organisation is secured. The risk appetite consists of the risk appetite statements and the declarations on quality and quantity. These are translated into risk limits and risk tolerances to enable continuous monitoring and control. The table below shows the risk appetite for the main risk categories, with financial risks at the aggregated level.
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.
Managing risks
Risk mitigation solutions are applied to ensure the risks remain within the desired bandwidths. In most situations this involves a suitable mix of:
- terminating or outsourcing activities;
- reducing risks by applying preventative measures;
- transferring risks via (re)insurance and/or the application of contract management;
- accepting risks that can be carried by the organisation itself.
If risks are outside of the predetermined risk limits – and therefore greater than desired – management will take additional mitigation measures. The deliberate breach of risk limits is only allowed with approval from the Board, and only when of a temporary nature. The risk appetite statements were evaluated and optimised in late 2023, including changes to the thresholds. Our risk appetite regarding these risks did not change in 2023.
Monitoring and reporting
Monitoring and evaluating risks and the risk management system are important preconditions for the type of learning organisation that we aim to be.
In assessing a risk an evaluation is made of whether it remains outside the risk appetite level. The starting point is that risks exceeding the appetite are reduced to a lower risk level based on a good mix of risk mitigation solutions.
To ensure constant risk monitoring, management determines KRIs (key risk indicators) for each risk within the risk profile, monitors the development of these indicators at least once per quarter, and evaluates the extent to which risk limits and tolerances are exceeded. Extra management actions are defined when breaches occur. In addition, the second and third line periodically report to the Management Board.
Management periodically participates in a Risk Control Self Assessment (RCSA) process which results in a Control Statement (ICS). In addition, the Internal Audit department evaluates the setup and effectiveness of the risk management system.
Own Risk and Solvency Assesment
Solvency II requires a demonstrably balanced weighing up of risk management, capital management and the corporate strategy. The ORSA is the process structure for this assessment and the degree of compliance is shown in the ORSA report. The content of the scenarios and stress scenarios is determined by the Management Board before the ORSA starts, after obtaining advice from the second line.
Management uses the Own Risk and Solvency Assessment (ORSA) at least once a year or when developments occur that may significantly affect the risk profile. This helps determine whether the risk profile is still appropriate in light of the company goals, risk appetite and available capital buffers. Various (stress) scenarios are taken into account in this process.
The results of the ORSA 2023 show that DELA’s solvency position is robust. The coverage ratio remained high throughout 2023. Policyholders can therefore expect a significant profit share depending on their type of policy, while premium increases remain limited.
We have no influence on interest rates or inflation curves, but can have some impact on the level of funeral costs. The ORSA 2023 has again shown that scenarios with low funeral cost inflation (combined with low interest rates) can put pressure on the solvency and/or premium increase.
Capital management
Capital policy is aimed at maintaining a solid solvency position, in which we are constantly looking for a good balance between the amount of capital (assets) we maintain and the risks we face. In this framework, we have defined a minimum normative value of solvency which we always aim to exceed. The capital policy defines various actions should the solvency ratio drop below the benchmark. The benchmark for each licensed entity (DELA Cooperative and DELA Natura) has been established at 150 percent.
The solvency ratio was constantly higher than the solvency benchmark during 2023.
For more details on risks and how they are managed please refer to the financial statements: ‘Consolidated financial statements’, ‘Notes on the consolidated balance sheet and income statement’, ‘4. Risk’.
Developments in 2023
While their management is a continuous process, risks do sometimes occur nonetheless. In this section we examine the risks faced in 2023 and the measures taken to minimise the chance and/or impact thereof. We also present some of the general measures taken to limit risks during the report year.
Financial risks
The financial markets are a source of risk. Interest rate developments not only affected the solvency position and coverage ratio, but also the results of our investment portfolio. Various steps to reduce this impact in the future were taken in 2023, such as extending the duration of the government bond portfolio and applying the premium measure. The increased interest rate also leads to refinancing risks in the real asset portfolio. This risk is mitigated in a number of ways, including by applying investment restrictions related to loan capital in these funds and thorough monitoring. In addition, we increased the diversification of our portfolio in 2023, including making investments in other types of real assets, and we continued to phase out the Dutch retail real estate portfolio.
A major risk-mitigating measure for the financial risks involves the premium measure. Applicable to all those holding a Dutch DELA Uitvaartplan policy, this measure enables us to adjust the premium when the coverage ratio and interest rates are especially low. As the premium measure helps protect DELA’s solvency when interest rates are low, it also allows us to increase our focus on the long term.
A further clarification on the development of the financial risks (including the associated quantification) is included in the risk section of the financial statements.
Horizonal monitoring covenant
Control of various aspects of the tax risks in the Netherlands has been reinforced. As a result, we signed a three-year covenant with the Dutch tax authorities for ‘ongoing horizontal monitoring’ (Doorontwikkeld Horizontaal Toezicht) in late 2023. Based on this covenant, tax issues are discussed with the tax office in advance.
Operational risks
Operational risks are caused by external influences, human error and the failure of processes and systems. Despite clear processes, responsibilities and reporting, these risks can never be fully excluded and it is important to learn from the past to prevent repeats in the future. The nature and scope of these incidents is very diverse and varies from several (attempted) cases of fraud and cyber-attacks to operational incidents at our locations.
All these incidents have been assessed and, where necessary, extra measures taken such as improving instructions and/or tightening up protocols.
Internal control
To enhance internal control and reduce operational and compliance risks, we started the ‘Controlled Business’ programme in 2023. This is aimed at improving the maturity of risk management of operational and compliance risks. In 2023 we mainly focused on the field of process management and the development of universally applicable templates. In 2024 we will be focusing on further implementation.
Data management
Having and using reliable data is crucial to a good-quality service provision. Unreliable data can lead to customers receiving incorrect information as well as operational issues and erroneous (financial) decision-making.
In 2023 we took some significant steps in the field of data management including spreading it across the three country organisations for the first time to generate greater synergies. We were also able to safeguard and significantly enhance the quality of data migration. Sharing data in a new way guarantees that our information supply will continue to be stable and reliable in the future. In addition, a large number of colleagues participated in the DELA Data Academy, and we worked closely with educational institutes and companies. This enabled us to take on a societal role in the field of data management and learn from the experiences of other organisations.
Digital transition
IT systems that are not future-proof are a major risk that could endanger the continuity of the company and the quality of our service provision to customers. We are active in (preparing) the replacement of various IT systems. The administrative systems for the country organisations are replaced or further optimised via a project-based approach.
Integrity risks
Not complying with legislation and regulations is a risk that can harm our continuity and reputation. There were no serious incidents in this field in 2023. To further manage such risks we worked hard on professionalising the procurement and outsourcing policy, having compliance with the applicable sanctions legislation and regulations as a precondition. In addition, we found options for improvement in how we handle the limited risk of conflicts of interest in sponsor agreements. These improvements will be implemented in 2024.
Strategic risks
Stress tests show that while our solvency position is robust, we are sensitive to scenarios with a low interest rate and low inflation. Preparatory measures are taken or different choices made where necessary. The main preconditions and measures are developed in the capital policy, which is evaluated annually. The risks are therefore considered limited and no additional capital has to be set aside. Stress tests were also performed with a focus on the impact of climate change. The conclusion to date is that our financial position is only slightly financially susceptible to this risk based on the current expectations.
Strategically, there were also developments related to possible adjustments to the strategy, and the impact of changes to the management team in 2024. These risks were inventoried and measures will be taken where necessary to limit them.
Our future
Our future
It is crucial to look ahead and anticipate future developments. Doing so enables us to realise our ambitions, maintain our strategic direction and remain sufficiently flexible to adapt to changing circumstances. In looking ahead, we provide guidance to our stakeholders and insight into our long-term vision. This vision is aimed at growth and a strengthening of customer relationships as we retain our identity.
Growth and development are vital for every part of DELA. Rather than being a goal in itself, growth offers the solid financial foundation that is essential for our continuity. Solvency must be maintained, including with the help of an offensive investment policy, cost control and risk management. Good employership, asound reputation, a focus on sustainability and a future-proof IT infrastructure are preconditions for success.
Growth
Our goal is to achieve a net increase in the number of insurance policies.
It is not so common to have funeral insurance in Belgium as it is in the Netherlands. The insurance portfolio in Belgium is also relatively new and our aim is to profile the brand in a way that emphasises DELA’s solidarity.
We also have major growth ambitions for the insurance portfolio in Germany. Our aim here is to increase name familiarity among consumers, brokers and partners, positioning DELA as an expert in aftercare services (‘Hinterbliebenenvorsorge’). Eventually we aim to become the digital insurer in the country.
Intensifying customer relations
We must constantly assess our products and services, with special innovation teams playing an important role. We are keen to find ways of meaning even more to customers both now and in the future as well as from a company-wide perspective that includes all divisions. With a constant eye on customer satisfaction, we are always looking for new ways to give further depth and meaning to our core values. Enhancing customer satisfaction is ultimately key in this process.
In Germany we are strengthening our current connection to brokers by supporting them with their communications and knowledge transfer via extra product information and webinars.
Preconditions for success
Our service provision demands a firm digital foundation to optimally support personal choices while retaining our efficiency and manoeuvrability. In the ‘digital finance’ programme, we are replacing financial applications across the group with future-proof solutions. In the Netherlands we are converting insurance policies (among other things) into a new administrative system in the ‘Digital Transition Insurance’ project. DELA Belgium uses the group (IT) infrastructure as much as possible. Germany will be migrating its entire insurance administration to a new system in 2024. At the same time, we are keeping all IT systems updated and secure.
We are also further optimising our processes and risk management, focusing on the availability and continuity of the parts that are essential for our core activities. We will generate greater synergies between our activities in the Netherlands, Belgium and Germany, allowing us to benefit from best practices and strengthen our local presence while keeping costs under control.
Increasing the sustainability of our activities will remain an important aspect herein. We are already working in a socially responsible way with a focus on climate change, sustainable material use and the social role we have within society. Under CSRD we will accelerate the sustainability of our activities. We will be using a CSR roadmap to realise our goals in the field of CO2 reduction, the use of sustainable materials, inclusivity as an employer and sustainable investments. We also aim to further integrate sustainability within all our processes and decision-making, reducing our impact on the environment and making a positive contribution to society.
We will keep in mind the well-being of our employees by investing in working conditions and development opportunities. Increasing flexibility is crucial in order to address the tight labour market and ensure employee retention. The learning and performance programme is result-oriented and stimulates knowledge and experience sharing. We encourage our staff to give their best every day via team and personal development plans that include a dedicated portfolio of courses and workshops. We will also continue efforts to reduce work stress. Simplifying daily activities – the transition to decentralised reservations being a good example – will enhance efficiency, while promoting the importance of existing processes and protocols will safeguard the quality of our services and reduce the pressure on individual employees.
Last but not least
Various changes to the Management Board are expected in 2024 due to retirement and these will be carefully realised to ensure continuity.
Dynamic times require us to be resilient and determined in order to stay relevant to our customers. We can only achieve this by anticipating changing needs and market conditions while staying loyal to our core values and our goal for excellence in our service provision. With a clear ambition and course and engaged and skilled employees, this robust organisation has complete confidence in the future.
Eindhoven, 26 april 2024
The Management Board
S.M.G. (Sandra) Schellekens – Lyppens, namens DELA Holding N.V.
J.A.M. (Jack) van der Putten, director
J.L.R. (Jon) van Dijk, director
