Jean Frijns is to step down as chairman of the supervisory board at Delta Lloyd after the Dutch regulator (DNB) concluded the insurer made a number of “speculative” derivatives transactions.
According to the regulator, Delta Lloyd drew on confidential DNB information to make speculative transactions that were “carried out without following internal procedures” and “did not fit within the insurer’s risk-management procedures”.
A Delta Lloyd court order has prevented the regulator from releasing further details about the fine.
Dutch news daily NRC, however, alleges that, in 2012, the insurer offloaded derivatives worth hundreds of millions of euros against interest rates changes.
This occurred just before the DNB announced the introduction of a fixed discount rate for insurers.
The regulator confirmed in December 2014 that it fined Delta Lloyd €1.2m and ordered it to sack CFO Emiel Roozen.
Although Delta Lloyd appealed on both accounts, a Rotterdam court last week upheld the fine – reduced to €1m for “procedural reasons”.
The regulator also seized €21.6m, the alleged proceeds of the insurer’s “dishonest” business.
Frijns said Roozen – in spite of the court’s ruling that the regulator should re-think its order to sack him – had resigned “with immediate effect”, citing the importance for Delta Lloyd and its stakeholders to close the case “as quickly as possible”.
“I also accept the consequences [of this ruling],” he added, “as the court has made such a different assessment of the facts than the supervisory board.”
Frijns, a former CIO at €356bn Dutch civil service pension fund ABP, is to step down on 1 October.
According to the NRC, Delta Lloyd executive chairman Niek Hoek also resigned earlier this year due to pressure from the regulator.
Local media, including broadcaster RTL and the FD, claimed the regulator’s pending reassessment of Hoek’s suitability as chief executive, due to the alleged misuse of foreknowledge, triggered his departure from Delta Lloyd.