Notes to the company balance sheet and income statement

The activities of DELA Natura- en levensverzekeringen N.V. ('DELA Natura'), having its registered office in Eindhoven, Oude Stadsgracht 1, Chamber of Commerce number 17078393 consist of insurance and investing. The insurance products comprise funeral insurance, term life insurance, and savings-linked insurance. The insurance activities take place in the Netherlands, Belgium, and Germany. All investing activities for DELA Natura are conducted in the Netherlands.

Related parties are defined as all legal entities that can be controlled, jointly controlled, or significantly influenced. Legal entities that can exercise control are also defined as related parties. The members of the Supervisory Board, the members of the Management Board under the Articles of Association, other key officers in the management of DELA Natura, and their close relatives are also related parties. The other group companies within the DELA Coöperatie U.A. group, which includes DELA Natura, are also defined as related parties.

DELA Natura- en levensverzekeringen N.V. exercises the consolidation exemption in accordance with Article 2:408 of the Dutch Civil Code (DCC) (interim consolidation exemption). This is because the financial information that the legal entity would have to consolidate is included in the consolidated financial statements of DELA Coöperatie U.A. The financial statements, including the consolidated figures of DELA Coöperatie U.A., are available from the Chamber of Commerce.

DELA Natura exercises the exemption in RJ 360. This states that a medium or large-sized legal entity must prepare a cash flow statement unless the capital of the legal entity is directly or indirectly provided by another legal entity that prepares an equivalent cash flow statement that is included in the consolidated financial statements filed with the trade register in the Netherlands. The financial statements, including the cash flow statement of DELA Coöperatie U.A., are available from the Chamber of Commerce.

In applying accounting policies and financial reporting requirements, the Management Board needs to make judgements and estimates that may be critical to the amounts reported in the financial statements. Where necessary to provide the insight required by DCC Article 2:362(1), the nature of these judgements and estimates, and details of the underlying assumptions, are provided in the notes to the relevant items. Although these estimates have been made by the Management Board to the best of their knowledge, the actual outcomes may ultimately vary.

It was several years ago that Yarden was acquired. This acquisition took place on 2 August 2021, and the technical provisions were measured at fair value in accordance with the purchase accounting method as at 31 July 2021. Due to a drop in interest rates between those dates, the valuation of the technical provision was too low. Before 2025, DELA had chosen not to recognise this immaterial difference. DELA has reconsidered this standpoint now and decided to recognise the difference after all. This adjustment has been made retrospectively to provide better insight into the 2025 financial statements and for comparison purposes.

In the previous year, the amounts due from intermediaries and policyholders were incorrectly recognised under 'Other receivables'. To enhance the informative value of the financial statements, we have rebalanced the figures between 'Other receivables' and 'Receivables arising out of direct insurance business'. 

DELA Natura- en levensverzekeringen N.V. exercises the interim consolidation exemption in accordance with DCC Article 2:408. The financial information of the company and its subsidiaries is included in the consolidated financial statements of DELA Coöperatie U.A.

The financial statements for 2025 were prepared by the management on 21 April 2026 and will, at the time of publication, have been adopted at the general meeting of 30 May 2026. The financial statements for 2024 were adopted at the general meeting of 24 May 2025.

The financial statements were prepared in accordance with the statutory provisions of DCC Title 9, Book 2 and the Dutch Guidelines for Annual Reporting (Richtlijnen voor de Jaarverslaggeving, RJ), including RJ 605, which is applicable to insurers. This is based on the going-concern assumption.

Profit is measured and determined using historical costs unless stated otherwise. Income and expenses are allocated to the year to which they relate. Gains are only recognised if they were realised at the balance sheet date, unless stated otherwise. Liabilities and potential losses arising before the end of the reporting year are accounted for it they become apparent before the financial statements are prepared.

The accounting policies applied have remained unchanged since the previous year.

The items in the financial statements are measured using the currency of the economic environment in which the group companies carry out the majority of their business activities (functional currency). The euro is the functional currency and the presentation currency of DELA Natura.

Transactions in foreign currencies during the reporting period are recognised in the financial statements at the exchange rate on the transaction date. Assets and liabilities in foreign currencies that are stated at fair value are translated at the exchange rate as at the balance sheet date. Exchange rate differences that arise in the settlement of monetary items are recognised in the income statement in the period in which they occur.

Assets measured at historical cost in a foreign currency are translated using the exchange rate prevailing on the transaction date (or approximate exchange rate).

Reinsurance is utilised for our term-life insurance through a combination of quota share and excess of loss reinsurance contracts. The aim is to limit the chance of fluctuations in the operating profit. DELA Natura is compensated for losses on issued insurance contracts by contracts made with reinsurers.

Reinsurance premiums, commissions and claims as well as technical provisions for reinsurance contracts are accounted for in the same way as the direct insurance for which the reinsurance was taken out. The reinsurers' share of the technical provisions to which DELA Natura is entitled under its reinsurance contracts is deducted from the gross technical provisions. Amounts owed by reinsurers falling due within one year are entered under receivables.

Amounts due from or payable to reinsurers are measured in accordance with the conditions of the reinsurance contracts. Reinsurance liabilities primarily concern premiums payable.

Receivables arising out of reinsurance contracts are tested at the balance sheet date for any impairment.

Intangible fixed assets are measured at historical cost less accumulated amortisation and any impairment losses. Amortisation is taken on a straight-line basis over the useful life of the assets. Their useful life is reassessed at the end of the financial year, and the amortisation period is revised if any significant changes are detected. A statutory reserve is recognised for the costs of internal development, equivalent to the value of the capitalised amount.

See section 2.8 to determine whether an intangible fixed asset has become impaired.

The future cash flows from acquired insurance portfolios are measured at their fair value at the time of acquisition. Fair value is the amount that would have to be paid between knowledgeable, willing parties in an arm's length transaction. This value is amortised on a straight-line basis over its expected useful life, which is assessed annually. The current expected useful life for acquired insurance portfolios is 20 years, calculated from the acquisition date.

Concessions and licences are measured at historical cost and amortised on a straight-line basis over their expected useful life with a maximum of 20 years.

Software development expenses are capitalised as part of the production cost if it is probable that there will be future economic benefits and the costs can be reliably measured. Investments in software systems are capitalised and amortised on a straight-line basis over their expected useful life, with a maximum of 10 years.

The accounting policy per investment category is described below. The majority of the investments are measured at fair value. Section 4 in the notes to the balance sheet item provides a more detailed explanation of fair value, if required. Both unrealised and realised gains and losses due to the sale and changes in the value of investments are recognised in the income statement. Transaction costs related to the purchase and sale of investments are recognised directly in the income statement. The purchase and sale of securities is recognised on the transaction date.

Participating interests over which significant influence can be exercised are measured using the equity method (net asset value method). In the event that 20 per cent or more of the voting rights can be exercised, it may, by law, be assumed that there is significant influence.

The net asset value is calculated in accordance with the accounting policies that apply to these financial statements; for participating interests about which there is not enough information available for alignment with these policies, the accounting policies of the relevant participating interest prevail.

If the measurement of a participating interest based on net asset value is negative, it will be stated at nil. If and in so far as DELA Natura can be held fully or partially liable for the debts of the participating interest, a provision is recognised for this. Participating interests are recognised initially at the fair value of the identifiable assets and liabilities on acquisition and subsequently on the basis of the accounting policies used for these financial statements using this initial value as a basis.

Participating interests where no significant influence can be exercised are measured at historical cost. In the event of permanent impairment, the item is carried at the recoverable amount. Impairment losses are charged to the income statement.

Amounts owed by participating interests recognised under financial fixed assets are measured at the fair value of the amount provided, which is normally its nominal value, less any provisions deemed necessary.

Shares are measured at fair value based on official listings in the financial markets. Changes in value are recognised directly in the income statement.

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

Mortgage loan receivables are measured at amortised cost. The direct costs related to the provision of a mortgage loan are included as purchase costs. They are part of the amortised cost and are capitalised in the balance sheet. An assessment will be made at the balance sheet date as to whether there is any objective evidence that the mortgage loan receivables are impaired. The loss is recognised in the income statement if this proves to be the case.

DELA Natura has forward exchange contracts that are measured at fair value. The gain or loss from the revaluation into fair value at the balance sheet date is immediately recognised in the income statement. This concerns unquoted assets, which are measured using financial models: the mark-to-model method. Any derivative financial instruments with a negative value are categorised in the balance sheet under accruals and deferred income.

Investments in business loans are measured at fair value.
Other loans have a fixed interest rate and are measured at amortised cost less a provision for doubtful debts.

Investments in real estate funds, infrastructure funds, and agricultural and forestry funds are measured at fair value. This item contains investments without a frequent quotation. Section 4.2 provides more detailed information on the valuation method. Changes in value are recognised directly in the income statement. A revaluation reserve is recognised for the accumulated unrealised positive value, taking account of deferred taxes.

Investments in mortgage funds are measured at fair value. This item contains investments without a frequent quotation. Section 4.2 provides more detailed information on the valuation method. Changes in value are recognised directly in the income statement. A revaluation reserve is recognised for the accumulated unrealised positive value at fund level, taking account of deferred taxes.

Investments in cash and cash equivalents are measured at fair value, which is the same as their nominal value.

Other financial investments are measured at fair value. This item contains investments without a frequent quotation. Section 5.2 provides more detailed information on the valuation method. Changes in value are recognised directly in the income statement. A revaluation reserve is recognised for the accumulated unrealised positive value, taking account of deferred taxes.

The items from the income statement below comprise the total investment results. Investment income allocated to the non-technical account is determined by multiplying the investment results by the ratio of the average equity to the average total equity per country.

Investment income includes: 

• rental income from investments in real estate; 
• results of participating interests;
• dividends from shares; 
• interest on investments in fixed-income securities; 
• realised gain on the sale of investments.

Interest expense is recognised on a pro-rata time basis taking into account the effective interest rate of the relevant liabilities. Transaction costs of the loans received are taken into account when recognising interest expense.

The unrealised result originates from changes in the value of securities and real estate.

Administration expenses and interest expense include:

• administration expenses for investments in real estate;
• administration expenses and custody fees for shares and bonds;
• interest expense.

Realised losses on financial instruments measured at market value are recognised in the income statement.

Receivables are measured at fair value on initial recognition and subsequently measured at amortised cost. Any provisions deemed necessary for possible losses due to doubtful debts are deducted. These provisions are determined based on an individual assessment of the amounts receivable.

Deferred tax assets are recognised for all temporary differences between the value of the assets and liabilities under tax regulations and the accounting policies used in these financial statements. In addition, a deferred tax asset has been recognised for losses that can be carried forward. Deferred tax assets are recognised if it is deemed probable that sufficient future taxable profit will be available. The calculation of deferred tax assets at nominal value is based on the tax rates prevailing at the end of the reporting year or the rates applicable in future years, to the extent that they have already been enacted by law or the legislative process has been substantially completed at the balance sheet date.

Tangible fixed assets are measured at historical cost less depreciation over their expected useful lives and taking account of any residual value. Depreciation is taken on a straight-line basis according to the following depreciation periods:

• Equipment: 10 years 
• Laptops: 4 years
• IT equipment: 5 years 

DELA Natura assesses at the balance sheet date whether there are any indications that a fixed asset may be impaired. If so, the recoverable amount of the individual asset is determined. If the recoverable amount of an individual asset cannot be determined, the recoverable amount of the cash-generating unit to which the asset belongs is determined. This involves the use of estimates. An asset is impaired if its carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's net selling price and its value in use.

If it is determined that a previously recognised impairment loss no longer exists or has decreased, the impairment loss is reversed up to the carrying amount that would have been determined if no impairment loss had been recognised for the asset.

For financial instruments, DELA Natura also assesses at each balance sheet date whether there are objective indications of impairments of a financial asset or group of financial assets. In the event of such indications, the impairment loss is determined and recognised directly in the income statement.

For financial assets that were measured at redemption value, the amount of the impairment loss is determined as the difference between the asset's carrying amount and the best estimate of the future cash flows, discounted at the effective interest rate of the financial asset as determined on the initial recognition of the instrument. Any reversal of an impairment loss is limited to the amount required to measure the asset at amortised cost. The reversed loss is then recognised in the income statement. Any impairment of goodwill will not be reversed in the future.

Cash and cash equivalents comprise cash in hand and bank balances. Bank overdrafts are included in payables to credit institutions in current liabilities. Cash and cash equivalents are measured at nominal value.

Receivables are measured at fair value on initial recognition and subsequently measured at amortised cost. The fair value of the amortised cost equals the nominal value. Any provisions deemed necessary for possible losses due to doubtful debts are deducted.

Whether and how a share of the profit is granted under the terms of the DELA Uitvaartplan is determined by the general meeting of Coöperatie DELA on the recommendation of the Executive Board. The balance between healthy solvency, sufficient equity levels, and profit sharing is important in this decision for the financial health of our cooperative. The amount of the profit share is calculated on an actuarial basis. The amount of the annual profit share is determined by the Executive Board itself within the principles agreed with the general meeting. If a different profit share is proposed, it must be approved by the general meeting on the recommendation of the Executive Board. The profit share, if any, is then recognised via the technical provisions. The addition of the amount that DELA Natura has appropriated for profit sharing in respect of the technical provisions is charged to the profit.

Determining the technical provisions is a process that by its very nature involves uncertainties. The actual claims depend on factors such as social, economic and demographic trends, inflation, investment returns, the behaviour of policyholders and assumptions about changes in mortality. Any use of different assumptions for these factors than the actuarial policies used to determine rates currently applied in the financial statements could have a material effect on the technical provisions and underwriting expenses (see also 4.8.1: liability adequacy test).

For claims under insurance policies that are expected to be paid in the future, a liability is recognised as soon as the policy takes effect. The funeral insurance liabilities for our own account and risk consist of the discounted (at actuarial interest) value of the expected (based on actuarial mortality) future claims (including recognised profit share) payable to policyholders or other beneficiaries, less future premiums.

The technical provision for DELA UitvaartPlan is calculated in accordance with the pure net method at an interest rate of 2.75 per cent and based on the GBM/V 1995-2000 mortality table published by the Dutch Actuarial Association (Actuarieel Genootschap), using the mortality and interest bases. For insurance policies with temporary premium payments, the actuarial interest rate for the period after the end date for the payment of premiums is 2 per cent.

The technical provisions for the Yarden portfolio acquired in 2021 are based on accounting policies used for measurement at fair value on the acquisition date. The actuarial interest rate is 1.3 per cent on average, and the mortality rate is based on the 2020 life expectancy table published by the Dutch Actuarial Association. Lapses and surrenders were also taken into account at the time of acquisition based on historical figures and the current cost level. In addition, there is an additional provision regarding the Yarden portfolio: At the time of the acquisition, DELA guaranteed that bereaved families will not have to pay inflation deficits for the first ten years after the acquisition. These deficits are estimated at the time of acquisition and discounted, resulting in the fair value of this commitment.

Most of the technical provision for funeral insurance for our own account and risk as taken out in Belgium is calculated in accordance with the pure net method based on the usual interest rates and life expectancy tables at the time that the policies took effect and using the mortality and interest rate bases. The expected claims are based on the actuarial rate policies as determined when taking out the policy.

The technical provision for DELA Sorgenfrei Leben is calculated using the pure net method at an interest rate of 2 per cent. The mortality rates are based on mortality tables published by the German Association of Actuaries (Deutsche Aktuarvereinigung, DAV).

The technical provisions in the insurance portfolio acquired in Germany in 2022 are based on accounting policies used for measurement at fair value on the acquisition date. The actuarial interest rate is 2.5 per cent on average, and the mortality rate is based on the 2022 life expectancy table published by the Dutch Actuarial Association.

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

The technical provision for DELA Activ Leben is calculated in accordance with the pure net method at an interest rate of 3 per cent. The mortality rates are based on mortality tables published by the German Association of Actuaries.

The technical provision for the DELA CoöperatiespaarPlan (savings plan) is calculated in accordance with the built-up surrender value based on the savings premiums paid, the recognised profit shares and the interest rate associated with the actuarial rate.

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

The deferred acquisition costs are deducted from the provision.

Provisions are recognised for legally enforceable or constructive obligations that exist at the balance sheet date and for which it is probable that an outflow of resources will be required, and a reliable estimate can be made.

Provisions are measured at the best estimate of the amount that is necessary to settle the obligations as at the balance sheet date. Provisions are measured at the present value of the expenditure expected to be needed to settle the obligations, unless stated otherwise.

If obligations are expected to be reimbursed by a third party, such reimbursement is recognised as an asset in the balance sheet if it is probable that such reimbursement will be received when the obligation is settled.

The provision for anniversaries is included for expected long-service awards during the course of employment (25 years and 40 years of service) and for when employees reach retirement age. The probability of future employee outflow is taken into account when determining the provision. This is based on historical figures. The impact of wage inflation and discounting is not taken into account in the expected awards as this is immaterial on balance.

For any tax amounts to be paid in the future resulting from differences between commercial and tax balance sheet valuations, a provision is recognised for the amount of these differences multiplied by the applicable tax rate. The provision for deferred tax liabilities is measured at nominal value.

The calculation of deferred tax liabilities is based on the tax rates prevailing at the end of the reporting year or the rates applicable in future years, to the extent that they have already been enacted by law or the legislative process has been substantially completed at the balance sheet date.

Liabilities are measured at fair value on initial recognition, which at that time is the same as amortised cost. Directly attributable transaction costs are included in the measurement on initial recognition. Liabilities are subsequently measured at amortised cost, which is the amount received, taking into account the premium or discount and less transaction costs. If there is no premium or discount, this amount is the same as their nominal value.

The difference between the carrying amount and the ultimate redemption value is charged to the income statement as interest expense over the estimated term of the liability based on the effective interest rate.

Accruals and deferred income are measured at fair value on initial recognition and subsequently measured at amortised cost.

DELA Natura does not have any financial lease contracts. Lease contracts that do not qualify as a financial lease are recognised as operational leases. Operational lease payments are recognised on a straight-line basis in the income statement for the term of the lease.

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

The reinsurance premiums comprise the premiums for reinsurance contracts. They are recognised in the income statement as an expense.

Acquisition costs are costs directly related to taking out insurance policies, which depend on and relate to the acquisition of new insurance contracts or the extension of existing ones. Acquisition costs consist of commissions paid to third parties for insurance products. The acquisition costs are deducted from the technical provision and expensed over ten years. The annual commissions are offset by the commissions recovered throughout the year. The amortisation period is regularly assessed. Where applicable, the amortisation charges are adapted to the shorter amortisation period.

The liability adequacy test is an annual assessment of whether the technical provision less the deferred acquisition costs and VOBA (Value of Business Acquired) is sufficient to provide a high degree of certainty regarding future amounts payable to policyholders. If this test leads to the conclusion that there is inadequate liquidity, the deferred acquisition costs are initially expensed in so far as necessary.

Administration expenses are costs that are not acquisition costs, staff costs or depreciation and amortisation.

Wages, salaries, and social security contributions are recognised in the income statement when they are due for payment to employees and the tax authorities. The pension schemes are described in the following sections.

Intangible and tangible fixed assets are amortised/depreciated over the expected future useful life of the asset from the time it is put into use. Land is not depreciated. Future amortisation/depreciation is adjusted accordingly if there is a change in the asset's useful life. Gains and losses recognised on the occasional sale of tangible fixed assets are included in the exceptional income and expenses.

Other income and expenses are revenues and costs that arise from activities other than insurance and investment or that are non-recurring.

The tax on profit is calculated on the profit before tax in the income statement, taking into account any tax losses carried forward (in so far as they are not included in the deferred tax assets) and exempt profit components, and after adding non-deductible expenses. Future changes to the applicable tax rate are also taken into account. 

Management regularly assesses the positions taken in the tax returns in situations where tax law allows room for interpretation and makes provisions where necessary for amounts that it expects will need to be paid to the local tax authorities.

In relation to the legislation on Pillar 2 income taxes, DELA Group has exercised the mandatory exception based on RJ statement 2023-14 regarding the treatment of deferred tax assets and liabilities related to Pillar 2 income taxes. 

The solvency position of DELA Natura is determined using the standard model in Solvency II. The internal minimum solvency capital requirement for DELA Natura has been established at 150 per cent.

The Solvency II ratio saw a slight increase in 2025 as a result of changes in interest rates, inflation and the coverage ratio. Stress tests show that the solvency position is robust, although DELA Natura is sensitive to scenarios with low interest rates and low inflation.

The composition of the capital requirement is illustrated by the diagram below.

In 2025, the own funds (these are the own funds in the Solvency II balance sheet) increased on the back of a decrease in the value of the technical provisions. This was driven by the higher interest rates and because more expenses were allocated to the coverage ratio in line with Solvency II. The composition of own funds is illustrated by the diagram below (amounts in € million).

DELA Natura is exposed to strategic risks, market risks, underwriting risks, operational risks, integrity risks, and reputation risks. The governance section of the report of the Management Board sets out the main risk areas. It also describes the developments in 2025 regarding the main risks.

The various risks are explained in more detail in the sections below. For improved readability, not all risks are described in detail, and some are combined.

Sustainability-related risks materialise in the event of market risks in particular and are part of the risk categories discussed in the following sections.

Similar to last year, the own funds consists almost entirely of tier 1 capital. All basic tier 1 items are fully at DELA's disposal.

Financial risks include market risks, underwriting risks, credit risk and liquidity risk.

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

DELA Natura has mitigated the market risk to a significant extent through its profit sharing scheme and premium action, as well as via derivatives that mitigate part of the currency risk. DELA Natura applies the 'prudent person' principle to its investment policy, and full and/or partial ALM studies are regularly performed to assess whether the investment policy is still suitable.

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

The underwriting risk is the risk that the size and timing of claims and/or expenses are not consistent with expectations. DELA Natura mitigates the underwriting risk in various ways, such as its profit sharing scheme and premium action, but also via reinsurance, acceptance (medical), and a continuous focus on costs.

DELA Natura is exposed to the life insurance risk only as it only provides life insurance. DELA Natura's portfolio largely consists of funeral insurance, with separate rates for the Netherlands, Belgium, and Germany. These rates are based on specific characteristics and assumptions (actuarial interest, costs, life expectancy tables) aligned to each country. An annual review is conducted to assess whether these assumptions align with the development of the relevant portfolios. The portfolio is large in numbers and size, which reduces fluctuations in the results.

In addition, DELA Natura markets a term life insurance policy in the Netherlands and Germany. The sums insured in that policy are significantly higher than in the funeral insurance. Reinsurance is used to limit any volatility of the results for this portfolio.

Finally, DELA Natura has a savings-linked product in the Netherlands. The mortality risk in this portfolio is limited at 10 per cent of the accumulated value.

The diagram below illustrates the composition of the underwriting risk (amounts in € million).

Credit risk (or: counterparty credit risk) is the risk of losses due to an unexpected default or unexpected worsening of the credit rating of the counterparties. This mainly involves amounts receivable related to mortgages, reinsurers, derivatives, and other debtors. In 2025, the size of the credit risk decreased to €35 million. Credit risk is not a material risk for DELA Natura.

No credit risk limits were exceeded in 2025.

This is the risk that DELA Natura is unable to fulfil its financial obligations to its policyholders or other creditors at any time because assets cannot be traded quickly enough. The liquidity risk is not expressed as a solvency capital requirement (SCR) in Solvency II. DELA Natura must have sufficient cash and cash equivalents to pay claims arising from the existing insurance contracts and to pay for its other annual expenses. DELA Natura can avail itself of credit facilities from the custodian of the shares and bonds or sell part of the liquid investments. DELA Natura fulfilled its financial obligations to policyholders and other creditors in 2025.

No liquidity risk limits were exceeded in 2025.

In addition to financial risks, DELA Natura also faces operational risks. These are risks resulting from external influences related to human error and the failure of processes and systems. The capital to be maintained for operational risks is limited compared to financial risks; it saw a slight increase in 2025.

Operational risk limits were exceeded in 2025 in the area of outsourcing. As a result, the responsible management initiated suitable action to return the risks to the desired level as quickly as possible. In addition, several activities for the implementation of DORA will continue in 2026.

Operational risks arise at all levels of the organisation. The main operational risk areas are explained in more detail below.

DELA Natura distinguishes between internal and external fraud risks. Internal fraud is that committed by DELA Natura employees who undertake unauthorised activities to enrich themselves and by doing so harm DELA Natura. Examples are embezzlement, unjustified expense claims, deliberately incorrect time reports, etc. External fraud is committed by someone from outside of DELA Natura (third parties, suppliers, customers, etc.) whose unauthorised activities impact DELA Natura. A second line compliance manager is responsible for the anti-fraud policy and for boosting awareness. The internal controls for fraud risks are tested on a quarterly basis.

The risks included here involve losses due to acts that are inconsistent with the laws on working conditions, health or safety, or as a result of events related to inequality or discrimination.

This concerns risks of disruptions to business activities due to system failure, including cyber risks and information security. The risk of losses due to the failure of transaction processing or process management or relationships with suppliers is also included.

Integrity risks go hand in hand with the threat to the reputation of, or the current or future threat to the capital or the profitability of a company due to insufficient compliance with the rules that are in force under or pursuant to any laws. In principle, DELA Natura monitors this issue from its compliance function based on the topics in the systematic integrity risk analysis (SIRA). No capital is maintained for this risk.
The SIRA topics are as follows: 

• Organisational and employee integrity: organisational integrity includes topics such as governance and outsourcing. Employee integrity concerns the integrity of the management, the internal supervisory body, and internal and external employees. Related subjects are pre-employment screening, skills and conflicts of interest.
• Customer chain integrity: this concerns both the integrity of customers and how the organisation treats customers. It includes the integrity of the chain in which the company operates. Topics range from duty of care to combatting money laundering and terrorism financing. 
• Market integrity: this concerns the integrity of the financial and other markets, including issues such as competition and market abuse.
• Integrity related to the processing of personal data: this involves the integrity of the data used within DELA Natura (such as the processing and security of personal data). 
• Tax integrity: this concerns the subtopics of tax governance and transfer pricing, VAT, payroll tax and corporation tax.

Integrity risk limits were exceeded twice in 2025. These were in the area of customer chain integrity and employee integrity. The responsible management initiated suitable action to return the risks to the desired level as quickly as possible.

This involves uncertainties that may impede implementation of the long-term strategy. These risks may hinder expansion abroad or restrict the ability to keep to the business model with a profit sharing goal. These risks can largely be minimised via a proper strategy process, guided by external consultants and monitored by the Supervisory Board. Implementation involves business cases to assess the required investments and keep them manageable. In addition, the ORSA is used to analyse which risks are a potential threat to the continuity of DELA Natura. Stress tests show that the solvency position is robust, although DELA Natura is sensitive to scenarios with low interest rates and low inflation. Preparatory measures are taken or different choices made where necessary. The main preconditions and actions are set out in the capital policy, which is evaluated annually. No capital is maintained for strategic risks.

External trends that may impact the strategy are constantly monitored and included in the ongoing strategy process.

No strategic risk limits were exceeded in 2025.

The reputation risk is the threat of any damage caused by a loss of reputation. Reputation loss may occur as a result of incidents related to the risk categories as described in the risk profile and is controlled by the active development of reputation management, with incident management being a major spearhead. This involves the timely identification of possible reputation risks and any associated spill-over effects, and taking timely management actions where necessary. The company culture and desired tone at the top are other important factors in mitigating this risk. They are supported by training programmes, the administrative organisation, and internal control. No capital is maintained for reputation risk.

No incidents occurred in 2025 that significantly harmed our reputation.

The valuation of the derivatives (forward exchange contracts) is based on the mark-to-model approach. At year-end 2025, the average remaining term of these contracts is 67 days.

At year-end 2024, the derivatives had a negative value of €95.5 million; these were shown in the balance sheet under the accruals and deferred income.

The real estate funds are unlisted. The real estate funds are measured at their fair value based on the DCF method. This value is provided by the fund managers and represents the valuation method that is also used when trading properties. Valuation is in accordance with generally accepted valuation methods. It is performed by an external valuer/valuator. We receive an ISAE3402 Type II report or equivalent for most funds. For all real estate funds, an independent auditor's report on the valuation or financial statements – or a status update on the audit if the report is not yet available – is received before the financial statements of DELA Natura are adopted. This provides sufficient confidence in the reliability of the valuations reported by the fund managers. A limited level of estimation uncertainty is inherent in the investments held by the fund.

The infrastructure funds and agricultural and forestry funds are unlisted. The valuation of the funds is based on the fair value provided by the fund managers. The value of the funds is determined using the DCF method. Local accounting standards are used in their valuation, and we have determined that there are only marginal differences between them. The valuation is performed by an external valuer/valuator. We receive an ISAE3402 Type II report or equivalent for most funds. The independent auditor's report on the valuation or financial statements of some of the funds – or a status update on the audit if the report is not yet available – is not received until after the financial statements of DELA Natura have been adopted. Analysis has provided sufficient certainty about the reliability of the values reported by the fund managers, but there remains a limited degree of estimation uncertainty that is inherent in the investments held by the fund.

The mortgage fund is unlisted and consists of investments in non-NHG accredited mortgages. Their valuation is based on the fair value provided by the fund managers. The DCF method is used for the valuation of the mortgage fund. The fund applies local accounting standards, which are evaluated by DELA for applicability within its own accounting policies. The valuation is performed internally and reviewed by the fund's external auditor. We receive an ISAE3402 Type II report on this valuation. The independent auditor's report on the fund's financial statements is received before the financial statements of DELA Natura are adopted. Analysis has provided sufficient certainty about the reliability of reported values, but there remains a limited degree of estimation uncertainty that is inherent in the investments held by the fund.

The amounts included in 'Other financial investments' relate to interests in unlisted private equity companies and a loan fund. At year-end 2025, the loan fund was valued at €150.1 million (2024: 73.3 million).

The market value of the private equity companies is based on the DCF method.

The loan fund is unlisted and consists of investments in business loans. The valuation of the loan fund is based on the fair value provided by the fund managers. Standards aligned with IFRS are applied in the valuation of the loan fund. DELA has established that these standards differ only marginally from DELA's own accounting policies. The valuation is performed by an external valuer. We receive an ISAE3402 Type II report from the fund. Before the financial statements of DELA Natura are adopted, DELA receives at least an independent auditor's report, providing sufficient certainty about the reliability of the reported values, but there remains a limited degree of estimation uncertainty that is inherent in the investments held by the fund.

Investments in cash and cash equivalents concern amounts receivable and payable directly related to the investment portfolios with a mandate issued to the asset manager.

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

• Counterparties must have an S&P rating of at least A-; 
• Collateral may only be government bonds from OECD countries with an S&P rating of at least AA-; 
• The market value of the collateral must be at least 102 per cent of the market value of the securities lent; 
• Shares on our engagement list are not eligible for lending. Engagement is the process by which shareholders actively exercise their rights.

The market value of the securities lent as at 31 December 2025 was €190.7 million (2024: €182.3 million). The value of the collateral is €198.2 million (2024: €188.4 million). The income from the securities lent was €0.5 million (2024: €0.4 million).

Due to the size and distribution of the business activities of DELA Natura, the concentration of the credit risk on the receivables arising out of direct insurance business is limited. No additional provision for credit risks was recognised on top of the usual provision for doubtful debts (€0.9 million).

DELA Natura has used the mandatory exception based on RJ statement 2023-14 regarding the treatment of deferred tax assets and liabilities related to Pillar 2 income taxes.

The legislation on Pillar 2 income taxes came into effect 1 January 2024. This legislation requires the parent company to pay an additional tax in the Netherlands or abroad if the effective tax rate in a country is less than 15 per cent. DELA Natura's main jurisdictions where exposures to this tax may exist are the Netherlands, Belgium and Germany. No Pillar 2 tax due for 2025. The position recognised in 2025 concerns an adjustment to the previous financial year.