NETHERLANDS – Delta Lloyd says its flow of new investments “fell back” in the first half – partly due to the withdrawal of a €240m mandate.
“Asset management’s net inflow of new investments dell back in the first six months of this year, to €66m,” the firm said in its first-half earnings release. “This was partly attributable to the termination of a large €240m mandate.” It did not name the client.
Total assets under management have risen 7% to €59bn from €55bn at the end of last year. Real estate investments were flat at €1.67bn.
The arm has seen the sale of investment funds by third parties rise by 72%, it added.
Low interest rates had a “mixed impact” on earnings. Low rates have led to fixed income earnings.
It added: “However, current long-term interest rates are too low to cover future life and pension liabilities and hence induced extra provisions for life and pension products with guaranteed contracts.”
“The low rates have also affected the embedded value, which has only increased by 5% to €3.8bn, despite profitable new production,” Delta Lloyd Group said in its report.
The company has adjusted its interest policy by hedging the risk of a further rates drop by means of derivatives, and by continuously adapting its provision for insurance liabilities to developments on the interest market, it explained.
Overall, the company’s net result was up 120% at €180m. Total group income was up 27% at €5.4bn.