Solid development of new business, solvency and IFRS result

7 August 2014

Solid development of new business, solvency and IFRS result

2014 Half year results – analyst presentation

Niek Hoek (CEO)

Emiel Roozen (CFO)

Table of contents

I. Key highlights and business overview

3

II. Financial review

13

III. Concluding remarks

28

Appendix:

A. Information by segment

33

B. Embedded value

49

C. Investment portfolio

58

D. Financial and capital information

68

Solid development of new business, solvency and IFRS result

Capital

Commercial

&

operational

results

• Growing market shares with improving margins in Life

―

new business market leadership extended with NAPI of

€

229m

―

IRR increased to 10%; New Business Margin increased to 2.3%

• Sustainable operational strategy drives cost reduction and performance

―

operational cost base at

€

369m ahead of target

• Net operational result decreased to

€

191m, impacted by lower LTIR yield

• IGD Group solvency ratio increased 23pp to 207%

―

issue of perpetual subordinated loan of

€

750m

―

IGD Group solvency well above 200% ambition

―

regulatory solvency insurance entities at 240%;

Delta Lloyd Levensverzekering NV at 261%

• Stable interim dividend of

€

0.42 per ordinary share

Business

performance

Cost savings

Profitability

Capital

•

Life new business value (EEV-based)

€

37m

•

Life new business internal rate of return

≥

9%

10%

•

Combined ratio of 98% or better across the cycle

97.2%

1

•

Operational return on equity in range of 8-12%

14.6%

•

Annual growth of net operational result

≥

3%

(7)%

•

IGD Group solvency at least 160-175%

207%

•

Management cost base FY 2014 <

€

750m

2

€

369m

—

FY 2015: <

€

720m

2

Performance on business objectives

H1 2014

1. Excluding terminated and run-off activities and market interest movements 2. Full year cost target, including ZA Insurance (€20m per year)

2pp

8%

10%

IRR

23.35

18.59

13.76

(0.50)

1.13

per share

5

23.38

19.74

14.51

1.44

0.98

per share

5

(3)%

379

369

Operational expenses

2

% / pp

FY 2013

H1 2014

0.8pp

1.5%

2.3%

New business margin

23pp

184%

207%

IGD Group solvency

8%

2,621

2,826

Shareholders’ funds

35%

27

37

New business value

1.1pp

96.1%

97.2%

COR General insurance

1

€

m

H1 2014

H1 2013

% / pp

GWP (commercial)

1

2,196

2,388

(8)%

NAPI

229

191

20%

Net operational result

2

191

206

(7)%

Net IFRS result

2,3

280

(92)

n.m.

Shareholders’ funds (trad. accounting)

3,846

3,540

9%

Group EEV

4

4,555

4,447

2%

1. Excluding terminated and run-off activities. COR also excluding market interest movements

2. H1 2013 figures restated for IFRS10. H1 2013 reported figures included in Appendix E / H1 2013 reported net IFRS result per share€(0.56) 3. Total business (incl. discontinued operations)

4. Net of minorities

5. Based on 194,819,526 shares per H1 2014; 190,421,962 per FY 2013; and 183,137,303 per H1 2013

Interest rates decreased, but equity markets positive

2,849 2,265 3,228 3,109 2,573 2,893 2,603 2,636 2,317 2,965 2,793

Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14

1.45% 2.68% 2.34% 1.74% 2.16% 3.42% 3.05% 3.83% 3.47% 2.27% 1.65% 1.99% 2.84% 2.38% 4.51% 4.50% 5.10%_{4.50% 3.98%} 2.44%

Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14

ECB AAA Coll. AAA

118 71 46 48

Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14

BBB A AA AAA

DJ Euro Stoxx 50

Interest rate curves (10yr point)

Corporate credit spreads (bps)

Spread coll. AAA vs ECB AAA (10yr point)

Unemployment rate in the Netherlands decreased to 6.8% (June 2014), Euro countries 11.5% (June 2014). Source: Eurostat

21 130 106 50 168 68 138 25 22 ₁₇

Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14

Running yield comfortably exceeds unwind of liabilities

Assets

• Equities

• Fixed income

• Property

• Mortgages

1

Liabilities

• Shareholders’ funds

• Technical reserves

2

Simplified marked-to-market balance sheet

Running yield: 3.14%

Coll. AAA (10yr point): 1.65%

•

Delta Lloyd uses market values for

assets as well as for liabilities

—

liability valuation based on

Coll. AAA curve

—

peers use tariff rates

(and LAT test)

•

Capital build up if running yield

exceeds required interest

•

Running yield spread increased:

1. Partly valued at amortised cost

2. Technical reserves Germany on tariff rates

2.44%

1.65%

Coll. AAA (10yr)

131 bps

149 bps

Spread

H1 2014 FY 2013

Consistent performance on ‘Future secured’ strategy

• Strong capital position

—

shareholders’ funds increased to

€

2.8bn

—

IGD Group solvency at 207%; insurance entities at 240%

Certainty

• Expanding market share through flexible and profitable distribution

—

new business market share of 60% in Dutch annual premiums Group Life

—

new mortgage origination in The Netherlands almost doubled

Distribution

• Increasing efficiency in processes, organisation and products

—

successful cost saving programme continues to deliver

—

exclusivity granted in sale process of Belgian bank

Simplicity

• Strong position in PPI market further enhanced by full ownership of BeFrank

• 3pp outperformance on own risk assets versus benchmark

• Running yield (3.14%) comfortably exceeds unwind of liabilities (1.65%)

Expertise

• Honourable, approachable, working together

—

improved score in AFM’s customer centricity dashboard, ranking above

market average

Strenghtening position for sustainable profitability

Sustainable profitability (

€

m)

Operational technical result in€and as % of operational result

H1 2014 2013

2012 2011

2010

Growing customer satisfaction

Customer satisfaction score

2012

2013

7.6

OHRA

7.7

7.4

Delta Lloyd

ABN AMRO

Insurance

7.4

7.7

7.6

Expanding market share

2012

2011

2010

Group Life annual premium new business market share

60.4% 48.8%

17.7% 22.3%

31.5%

Management cost base

Greater cost efficiency (

€

m)

Q1 2014

720 1,122 782 772 369 840 924 976 750 2008 2009 2010 2011 2012 2013 2014E 2015E

2013

2009 254 217 194 97 58 109 28% 15% 11% 40% 41% 37%

0.42

Stable interim dividend of

€

0.42

H1 2014

Interim dividend

Final dividend

4% stock dividend premium

0.42

0.42

FY 2013

4% stock dividend premium

0.42

1.03

0.61

• Interim dividend for 2014 of

€

0.42 per

ordinary share

—

default option for stock dividend

—

4% premium in case of stock

dividend

• Dividend well covered by operational

result and operational capital

generation

• IGD Group solvency at 207%

—

4% premium on stock dividend

gradually reduced if IGD Group

solvency exceeds 200% for two

consecutive quarters

Delivering on our promises

Growing market share with improving margins

Reaffirmed market leadership in new business

Strong capital position: IGD Group solvency well above 200% ambition

Table of contents

I. Key highlights and business overview

3

II. Financial review

13

III. Concluding remarks

28

Appendix:

A. Information by segment

33

B. Embedded value

49

C. Investment portfolio

58

D. Financial and capital information

68

207%

+13%

H1 2014

184%

FY 2013

+23pp

Strong capital position

IFRS shareholders’ funds (

€

m)

IGD Group solvency ratio

Net operational result (

€

m)

Gross written premiums

1

(

€

m)

191

-7%

206

H1 2014

H1 2013

2

-8%

2,388

H1 2014

2,196

H1 2013

+8%

2,826

H1 2014

FY 2013

2,621

1. Excluding run-off and terminated activities

Operational result impacted by decrease in yield curve

GI

(3)

-7%

(14)

H1

2013

1

206

H1

2014

191

Tax &

Minority

8

LTIR

(15)

Other

7

Bank

5

AM

(4)

Life

Technical result:€(9)m

Operational result after tax & minority

•

Technical result decreased

€

9m

—

Life:

€

14m decrease. H1 2013 positively

impacted by higher technical profit sharing

results

—

GI:

€

3m decrease, due to more large claims,

COR increased 1.1pp

—

AM:

€

4m decrease, due to lower treasury

result

—

Bank:

€

5m increase, due to higher interest

margin at Bank NL and lower operational

expenses at Bank Belgium

—

Other:

€

7m increase, mainly due to lower

operational expenses

•

LTIR decreased

€

15m due to substantial decline

in yield curve

Operational result

(before tax & minority)

Technical result

LTIR

Insurance

Non-insurance

LTIR on shareholder assets

LTIR on policyholder assets

+

+

+

+

+

+

109 118 H1 2013 H1 2014 163 177 H1 2014 H1 2013 97 31 66 H1 2014 80 28 52 H1 2013 GI Life H1 2014 29 -7 24 13 H1 2013 21 -14 28 8 Other AM Bank 17 117 H1 2014 19 58 24 28 H1 2013 127 15 17 67 Mortgages Property Equity Shareholders’ funds H1 2014 46 15 31 H1 2013 50 20 30 GI Life 272 295 H1 2014 H1 2013

Operational result development

73 bps decrease in coll. AAA curve (10-yr): H1 2014: 1.65%

H1 2013: 2.38%

Successful cost-saving programme continues to deliver

Management cost base (

€

m)

1. Before transfer of acquisition expenses and claim handling expenses, hence not equal to expense ratio 2. Including ZA Insurance (€20m per year)

3. As per H1 2014

• 3% decrease of operational expenses to

€

369m,

ahead of target

• Sustainable operational strategy drives cost

reduction and performance

• Cost reduction along four lines:

—

Straight Through Processing

—

digitalisation

—

legacy reduction

—

digital servicing

Segmental split (

€

m)

772m <790m

2013

369m3 <750m2

2014

2009 2010

2011 2012

2015

Target <1,000m <950m <900m <820m <720m2 Actual 976m 924m 840m 782m 772 782 840 924 976 H1 2014 750² 3693 0.6% 17.7% 2013 1.0% 17.8% 2009 1.3% 19.5% 0.7% 17.3% 2012 0.7% 18.4% 2011 0.8% 16.1% 2010

Life: Expenses / Insurance liabilities GI: Expenses / Net earned premium

379 37 20 71 118 133 369 31 22 69 111 136 Total

Life GI Bank AM Group/Other

1

IFRS result drives increase in shareholders’ funds

Shareholders’ funds development (

€

m)

(41)

0

(163)

96

2,621

H1 2014

2,826

Participation & other reserves (incl. share capital)

34

OCI pension reserve AFS equity securities

280

Cash dividend paid AFS debt

securities Net result

FY 2013

Strong underlying IFRS capital generation

IFRS capital generation (H1 2014,

€

m)

Pensions/ Other 109 Required interest2, 3 29 Movement assets5 2,588 Movement liabilities4 (2,744) 781 Operational technical result Insurance (460) Running yield1 IFRS capital generated OCI6 Operational technical result Non-insurance (33) Net IFRS result Tax & Minority (104) Capital build up Insurance Capital build up Non-Insurance Market volatility Insurance

1. Running yield: accrued interest, rental and dividend income (insurance segment only)

2. Required interest: amount needed to compensate for unwinding of (discounted) liabilities (including Germany) to present value. Excludes PHI/PA 3. Based on 13y coll. AAA spot rate at end December 2013 (2.85%)

4. Movement liabilities: impact of change in yield curve used to discount liabilities, including guarantee and inflation provisions 5. Movement assets: market volatility impact on assets (including derivatives)

6. OCI: mainly consists of movement of revaluation reserves and actuarial losses (dividend outflow excluded)

€401m €(156)m €29m

247 280

Note: numbers are net of tax

Final 2013 cash dividend

€

41m

GI, Bank, AM: 73

Life: 257

Operating profits use an assumed long term investment return

Operational capital generated H1 2014 (

€

m)

Dividend H1 2014 underpinned by capital generation

330

244

(86)

Capital generated from

Life and non-life

Investment in

new business

Operational capital

generated

• Capital generation covers

investment in new business and

final 2013 (cash) dividend payout

(

€

41m)

•

€

1.8bn undiscounted cash flows

to emerge over the next 5 years

from the existing life book

(FY 2013:

€

1.8bn)

•

€

8.0bn to emerge over the entire

life of the book (FY 2013:

€

7.9bn)

—

DNB swap (10 yr point): 1.47%

(FY 2013: 2.21%)

—

real world spread: 98 bps

(FY 2013: 105 bps)

181% 194% 187% 174% 184% 177% 193% 163% 221% 206% 193% 234% 219% 226% 212% 219% 213% 240% 184% 175% 165% 207% 120% 140% 160% 180% 200% 220% 240%

Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Jun 14

IGD Group solvency

Solvency insurance entities

• IGD Group solvency increased 23pp mainly driven by

+

issue of perpetual subordinated loan

+

operational capital generation

+

performance of assets versus liabilities

-/- final 2013 cash dividend payment

-/- increase in required capital due to decreased

interest rate curve

• Regulatory (IGD) solvency insurance entities at 240%

—

regulatory solvency of Delta Lloyd

Levensverzekering NV: 261%

• Ratios Bank (phase-in, incl. H1 2014 profit):

—

Bank NL: Basel III Total Capital ratio at 20.6%,

Common Equity Tier 1 ratio 17.9%

—

Bank BE: Basel III Total Capital ratio at 13.0%,

Common Equity Tier 1 ratio 10.8%

2,047

207%

H1 2014

Required capital Surplus capital

IGD Group solvency (

€

m)

1,949

1,630

FY 2013

184%

IGD Group solvency well above 200% ambition

2,197

Solvency ratio’s (%)

160-175% target

1

Real estate 5% FI securitized assets 5% FI corporates 15% Loans 3% Sovereigns 27% Mortgages 20%

Cash and deposits 1% Equity 7% FI covered 4% Sub Sovereigns 13%

1. Mortgages and loans partly at amortised cost

2. Includes private equity, preference shares, equity derivatives and others

3. Includes corporate credit, fixed income derivatives and fixed income investment funds 4. Includes covered bonds with state/government guarantee

5. Total return includes derivates; excluding Bank (NL and Be) and Amstelhuys

Own risk assets H1 2014 =

€

51.6 bn

1

Diversified marked-to-market asset portfolio

4 2

3

• Performance own risk assets 8.4%

⁵

outperforms benchmark (5.4%)

• High quality of mortgage portfolio

with low loss amount (

≤

0.022 %

(YTD) in The Netherlands, 0 % (YTD)

in Belgium)

• No material change in composition

of asset portfolio during H1 2014:

7%

7%

Equities

5%

5%

Real estate

21%

20%

Mortgages

1%

1%

Cash & deposits

H1 2014

FY 2013

Total return on own risk assets outperforms benchmark

1. Based on own risk AuM of approximately€42bn (excl. mortgages Bank (NL and Be) and Amstelhuys) 2. Performance including derivates

3. Performance including ‘Alternatives’ and including derivatives

3.0pp

0.5pp

(0.9)pp

3.6pp

Performance

5.4%

0.0%

4.9%

6.1%

Benchmark

8.4%

0.5%

4.0%

9.7%

Delta Lloyd

Benchmark

Portfolio

1

Fixed income

2

Iboxx

€

overall

Equity

3

36% AEX, 24% AMX, 40% MSCI Europe

Property

ROZ/IPD Netherlands all property

Total

• Fixed income portfolio outperforms benchmark, in line with higher duration of portfolio

• Equity performance negatively impacted by basis risk of hedging on Eurostoxx 50 and AEX

3.14%

4.33%

5.17%

2.99%

2.48%

H1 2014

3.75%

4.19%

5.30%

3.29%

3.47%

FY 2013

Asset class

Fixed income

Equity

Property

Mortgages

2

Total

Running yield exceeds unwind of liabilities

1. Market value as at H1 2014 of own risk portfolio 2. Excluding German mortgages

3. 10-year point as at H1 2014

• Actual regular annualised income

1

:

—

fixed income: yield-to-maturity

—

equity: annual rate of return based

on the last year’s dividends

—

property: annual rental income

—

mortgages: mortgage coupon rate

divided by residual amount

• Running yield decreased compared to

the last reported yield due to

decreased interest rates

• Running yield exceeds unwind of

liabilities

—

Coll. AAA curve

3

: 1.65%

• Life EEV based on real-world expected cash flows for covered business

—

cost of financial options and guarantees incorporated in discount rate

—

underlying discount rate of 7.0% (FY 2013: 7.0%)

• Germany, GI, Bank, Asset Management and Holding valued at net IFRS equity

• Holding includes impact of (cash) dividend 2013 and capital injections into operating companies

Group EEV of

€

23.38 per ordinary share

Group EEV (

€

m)

41

483

74

553

233

Life EEV (incl.

100% AAV)

H1 2014

4,539

Bank

Group EEV

H1 2014

4,555

Non-controlling

interests

Holding

(958)

AM

GI prudence

margin

GI

Non- covered

Life business

(410)

• Improvement for both individual and group business

• Effects of active pricing policy become visible in The Netherlands especially for

group business

• Further improvement necessary for individual business in Belgium

Improvement in new business value and profitability

8%

10%

Internal rate of return (IRR)

1

H1 2014

H1 2013

New business margin (NBM)

2

H1 2013

H1 2014

1.5%

2.3%

New business value (

€

m)

1

37

27

H1 2014

H1 2013

1. EEV-based 2. MCEV-based

Strong capital position

Actual running yield sustainable above unwind of liabilities

Operational excellence provides competitive advantages

Successful cost-saving programme

Table of contents

I. Key highlights and business overview

3

II. Financial review

13

III. Concluding remarks

28

Appendix:

A. Information by segment

33

B. Embedded value

49

C. Investment portfolio

58

D. Financial and capital information

68

Strenghtening position for sustainable profitability

Dutch market leader in Life new business and client performance

Operational excellence provides competitive advantages

Strong capital position: IGD Group solvency well above 200% ambition

Ex-dividend date final dividend 2014

25 May 2015

Q1 2015 Interim Management Statement

19 May 2015

Annual General Meeting

21 May 2015

Date

Event

11 August 2014

Ex-dividend date interim dividend 2014

6 November 2014

Q3 2014 Interim Management Statement

21 November 2014

Investor Day

24 February 2015

Preliminary announcement FY 2014 results

23 March 2015

Publication of annual report 2014

• Roeland Haanen,

Manager Investor Relations

—

Hans Duine,

IRO

—

Marscha Corzilius,

IRO

—

Ineke Beets,

assistant

• Contact details:

—

+31 (0)20 594 96 93

—

[email protected]

•

This presentation is being supplied to you solely for your information and used at the presentation held in August 2014.

•

Certain statements contained in this presentation that are not historical facts are "forward-looking statements". These

forward-looking statements are based on management’s beliefs and projections and on information currently available to

them. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond

Delta Lloyd Group's control and all of which are based on management's current beliefs and expectations about future

events.

•

Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. Delta

Lloyd Group undertakes no duty to and will not update any of the forward-looking statements in light of new information

or future events, except to the extent required by applicable law. A number of important factors could cause actual results

or outcomes to differ materially from those expressed in any forward-looking statement as a result of risks and

uncertainties facing Delta Lloyd Group and its subsidiaries. Such risks, uncertainties and other important factors include,

among others: (i) changes in the financial markets and general economic conditions, (ii) changes in competition from local,

national and international companies, new entrants in the market and self-insurance and changes to the competitive

landscape in which Delta Lloyd Group operates, (iii) the adoption of new, or changes to existing, laws and regulations such

as Solvency II, (iv) catastrophes and terrorist-related events, (v) default by third parties owing money, securities or other

assets on their financial obligations, (vi) equity market losses, (vii) long- and/or short-term interest rate volatility, (viii)

illiquidity of certain investment assets, (ix) flaws in underwriting assumptions, pricing and/or claims reserves, (x) the

termination of or changes to relationships with principal intermediaries or partnerships, (xi) the unavailability and

unaffordability of reinsurance, (xii) flaws in Delta Lloyd Group’s underwriting, operating controls or IT systems, or a failure

to prevent fraud, (xiii) a downgrade (or potential downgrade) of Delta Lloyd Group’s credit ratings, and (xiv) the outcome of

pending, threatened or future litigation or investigations. Should one or more of these risks or uncertainties materialise, or

should any underlying assumptions prove to be incorrect, Delta Lloyd Group's actual financial condition or results of

operations could differ materially from those described in this herein as anticipated, believed, estimated or expected.

•

Please refer to the Annual Report for the year ended December 31, 2013 for a description of certain important factors,

risks and uncertainties that may affect Delta Lloyd Group’s businesses.

•

The figures in this presentation have not been audited. They have been partly taken from the half year 2014 financial

supplement to the press release and partly from internal management information reports.

Table of contents

I. Key highlights and business overview

3

II. Financial review

13

III. Concluding remarks

28

Appendix:

A. Information by segment

33

B. Embedded value

49

C. Investment portfolio

58

D. Financial and capital information

68

Life net operational result decreased

Life net operational result development (

€

m)

7

-11%

Operational result H1 2014

137

Tax & Minority

Operational

result H1 2013 Technicalresult LTIR 153

• Life net operational result

decreased 11%

• Technical result decreased

€

14m

—

H1 2013 positively impacted by

higher technical profit sharing

results

—

lower disability result and lower

lapse result, only partly offset by

higher mortality result

• LTIR down

€

10m primarily due to

decrease of Collateralised AAA

curve

(14)

KPIs (

€

m)

Net operational result (

€

m)

1. Excluding Germany

2. To reflect IFRS10 impact, H1 2013 figures are restated. H1 2013 reported figures: Result before tax€(142)m LTIR€155m, Tax and minority €(65)m

(129) 1.5% 8% 191 126 652 1,576 H1 2013 333 2.3% 10% 229 183 464 1,432 H1 2014 (1,625) 0.7% 8% 401 225 1,762 3,266 FY 2012 178 2.1% 10% 431 257 1,742 3,330 FY 2013

New Business Margin GWP1

Single premium1

Annual premium1

NAPI1

IRR

Result before tax2

Comments

Comments

Life Insurance

H1 2014 H1 2013 Operational result on mortality, disability and

lapses 62 71

Normalised expense margins (10) (5)

Technical result 52 66

LTIR2 _{140 151}

Tax and minority2 _{(56) (64)}

Net operational result2 _{137 153}

•

GWP decreased mainly due to declining Individual Life market in The Netherlands

•

NAPI increased due to higher annual premium production at Group Life

•

Positive result before tax: positive fixed income result more than offsets increase of insurance liabilities (due to decrease of Coll. AAA curve)

•

Technical result below H1 2013

—

lower technical profit sharing results, lower disability result and lower lapse result, only partly offset by higher mortality result

GI net operational result decreased

•

Commercial GWP decreased 6%

—

gradual exit WGA ER market and strict

underwriting

•

Net operational result decreased

€

7m

—

technical result

€

3m lower mainly due to

large claims at Motor and Fire

—

LTIR decreased

€

7m due to lower yield

curve

GI net operational result development (

€

m)

34

41

4

H1 2014

Tax &

minority

LTIR

(7)

Technical

result

(3)

H1 2013

Income protection, 150 Transport, 38 Other, 93 Motor, 200 Liability, 64 Fire, 218

H1 2014 GWP (

€

m)

GI combined ratio increased in first half of 2014

65.4% 66.6% 13.2% 14.8% 17.5% 15.8% 96.1% 97.2% H1 2013 H1 2014

Claims ratio Expense ratio Commission ratio

Combined ratio

1

1. Excluding terminated and run-off activities and market interest movements

Combined ratio

1

per business line

•

COR increased 1.1pp:

—

H1 2013 positively impacted by release of

unearned premium reserve (Motor, Fire)

—

Motor increased due to higher (bodily injury and

theft) claims and prior year reserve

strengthening

—

increase at Fire due to high number of large

claims and prior year reserve strengthening

—

strong improvement of Liability business

—

large improvement at Income Protection due to

release of prior year claims reserve, no further

negative impact of WGA ER

—

Increase at Other caused by high number of

large claims at Agriculture

•

COR management programme will continue:

—

selective and sharper underwriting policy

—

improved pricing policy

—

International Marine Business fully reinsured

—

termination of all WGA ER contracts as of 1

January 2016

—

further cost and FTE reduction

—

further increase Straight Through Processing

—

improve claim management processing

including claim control

96% 62% 81% 111% 113% 92% 96% 97% 85% 79% 73% 97% 105% 116%

Motor Fire Liability Income Protection

Transport Other Total

•

Commercial GWP decreased 6%

—

gradual exit WGA ER market and strict underwriting

•

Result before tax negatively impacted by€32m penalty interest for early redemption of€100m 30nc10 loan and curve effect (€30m)

•

Net operational result decreased€7m

—

technical result€3m lower mainly due to large claims at Motor and Fire

—

LTIR decreased€7m due to lower yield curve

KPIs (

€

m)

Net operational result (

€

m)

Comments

Comments

General Insurance

1. Excluding terminated and run-off activities. COR also excluding market interest movements

H1 20141 _{H1 2013}1

Net earned premium 628 722

Benefits and claims (419) (472)

Expenses / commissions (182) (219)

Technical result 28 31

LTIR 24 32

Tax and minority (18) (22)

Operational result 34 41

H1 2014 H1 2013 FY 2013 FY 2012

Total New business1 _{93 85 146 204}

Total decreases (104) (84) (159) (202)

Commercial GWP1 _{764 812 1,380 1,385}

COR1 _{97.2% 96.1% 97.7% 97.9%}

Bank

•

Net operational result increased

€

8m, mainly due to lower operational

expenses (lower staff expenses) and LTIR effect

Asset

Management

Other

Performance Asset Management, Bank and Other

•

Net operational result decreased

€

3m, mainly due to lower treasury result

•

Net outflow of retail funds and institutional mandates of

€

350m (H1 2013:

net inflow of

€

474m), due to withdrawal of retail funds and one large

institutional mandate

•

Net operational result improved

€

3m, as a result of higher net interest margin

and lower expenses

—

net interest margin improved mainly due to decreasing tariff rates of

savings and banking annuities

KPIs (

€

m)

Net operational result (

€

m)

Comments

Comments

Asset Management

H1 2014 H1 2013 FY 2013 FY 2012 - Institutional mandates1 _{(192) 151 340 (706)} - 3rd Party funds (158) 322 418 718 3rd Party Distribution (350) 474 757 12 DL Group Companies1 _{249 188 84 (356)}

Net inflow new money (101) 662 842 (344)

Assets under Management 80,164 78,007 77,817 79,113

Result before tax 23 26 54 59

H1 2014 H1 2013

Net fee and commission income 39 37

Result DL Treasury 6 11

Operational expenses (22) (20)

Technical result 24 28

LTIR 0 1

Tax and minority (6) (7)

Operational result 18 21

•

Lower result before tax mainly caused by lower treasury results

•

Net outflow of retail funds and institutional mandates of€350m, due to withdrawal of retail funds and one large institutional mandate

1. As from H1 2014 onwards, Cyrte figures are no longer shown as a separate line item

•

Net operational result decreased€3m, mainly due to lower treasury result

—

lower treasury result due to lower volume combined with decreasing spreads

Bank (Netherlands and Belgium)

•

Operational result improved, mainly due to improved net interest income and lower operational expenses

—

net interest income improved largely due to decreasing interest rates of savings and banking annuities

•

Lower operational expenses due to focus on cost reduction and lower FTEs at Bank Belgium

KPIs (

€

m)

Net operational result (

€

m)

•

Innovative Loan-to-Value based tariff system (introduced in 2013) resulted in 53% higher inflow of new mortgages and improved quality of portfolio

•

‘Banksparen’ balances (banking annuities and mortgage related savings) stabilising at€2.0bn (up 2%), inflow decreases due to focus on margin

•

Result before tax positively impacted by intercompany transactions eliminated at Group level

Comments

Comments

H1 2014 H1 2013 FY 2013 FY 2012

Inflow new mortages 564 370 1.295 683

Net inflow savings 199 (363) (468) (720) Net inflow banking annuities (excl. ZPH) 12 107 125 511 Net inflow savings mortgage related (ZPH) 27 35 64 51

Result before tax 57 (26) (11) (75)

H1 2014 H1 2013

Net interest income 51 48

Net commission income & Other 31 31

Operational expenses (69) (71)

Technical Result 13 8

LTIR 4 5

Tax & minority (4) (3)

Bank Netherlands

•

Operational result improved, mainly due to improved net interest income

—

net interest income improved largely due to decreasing interest rates of savings and banking annuities

KPIs (

€

m)

Net operational result (

€

m)

•

Innovative Loan-to-Value based tariff system (introduced in 2013) resulted in higher inflow of new mortgages and improved quality of portfolio

•

‘Banksparen’ balances (banking annuities and mortgage related savings) stabilising at€2.0bn (up 2%), inflow decreases due to focus on margin

•

Result before tax positively impacted by intercompany transactions eliminated at Group level

•

Basel III Total Capital ratio at 20.6%; Common Equity Tier 1 ratio at 17.9% (phase-in, including H1 profit)

Comments

Comments

€m H1 2014 H1 2013

Net Interest Income 20 17

Net Fee & Commission Income 12 12

Operational expenses (28) (26)

Technical result 5 3

LTIR 1 1

Tax and minority (2) (1)

Operational result 5 3

€m H1 2014 H1 2013 FY 2013 FY 2012

Inflow New Mortgages 426 222 952 514

Net inflow Savings 8 (185) (288) (601)

Net inflow banking annuities (excl. ZPH) 12 107 125 511 Net inflow savings mortgage related (ZPH) 27 35 64 51

Bank Belgium

KPIs (

€

m)

Net operational result (

€

m)

Comments

Comments

•

Lower inflow of new mortgages due to focus on margin over volume and competitive banking market in Belgium

•

Growth in short and long term deposits portfolio. Short term mainly by institutional clients, long term by retail clients. Savings portfolio remains stable

•

Result before tax is lower than H1 2013, mainly due to lower realised gains on AFS portfolio and lower fair value result on interest rate swaps (not in hedge)

•

Basel III Total Capital ratio at 13.0%; Common Equity Tier 1 ratio 10.8% (phase-in, including H1 profit)

•

Net Interest Income stable

•

Net Fee & Commission Income slightly lower as a result of decreased portfolio fees due to less entrance fees and lower portfolios

•

Lower operational expenses, mainly due to decreased number of FTEs

€m H1 2014 H1 2013 FY 2013 FY 2012

Inflow New Mortgages 139 147 343 169

Net inflow Savings 191 (179) (180) (119)

Result before tax before HFS-classification 8 19 27 (13) Impairments HFS-classification (1) - (23) -Result before tax after HFS-classification 7 19 4 (13)

€m H1 2014 H1 2013

Net Interest Income 31 31

Net Fee & Commission Income 18 19

Operational expenses (42) (45)

Technical result 8 5

LTIR 3 4

Tax and minority (3) (2)

• Result of Delta Lloyd NV increased in 2014, mainly due to higher impairments and intercompany transactions in 2013 (sale of own personnel mortgage portfolio)

• Improved result of Business unit Holdings mainly due to sale of non-life in Belgium to Fidea in H1 2013

• Decreased result of Amstelhuys due to lower result from financial transactions

•

Development of operational result driven by:

—

lower operational expenses due to lower staff expenses

—

less negative LTIR, due to decreased coll. AAA curve and increased shareholders’ equity

KPIs (

€

m)

Net operational result (

€

m)

Comments

Comments

Other

H1 2014 H1 2013

Operational technical result (7) (14)

LTIR (6) (11)

Tax and minority 3 6

Net operational result (10) (19) H1 2014 H1 2013 FY 2013 FY 2012

Delta Lloyd NV (73) (95) (187) (156)

Business Unit Holdings (1) (15) (14) (41)

Label activities Health 14 13 28 16

Run-off companies 0 1 2 16

Amstelhuys 32 72 112 (60)

Result before tax (28) (24) (60) (225)

•

Amstelhuys is a subsidiary of Delta Lloyd NV and is

consolidated in segment Other

•

A funding vehicle mainly used for Dutch mortgage

origination

•

Wholesale funding predominantly through

securitisations

•

Decrease of mortgage portfolio as a result of sale of

existing and new mortgages to Life, Bank, General

Insurance and AA Insurance. The volume of related

interest rate swaps decreased accordingly, lowering

other financial assets

•

Long term liabilities decreased because of the

redemption of Darts 2004-notes

•

Short-term and other liabilities decreased due to lower

funding needs as a result of the sale of the mortgages

Balance Sheet (

€

m)

Key highlights

Amstelhuys

H1 2014

FY 2013

Mortgages

5,190

5,794

Other investments

246

281

Other financial assets

617

644

Prepayments and accrued income

0

0

Cash and cash equivalents

3

12

Total assets

6,056

6,730

Equity

(18)

(42)

Deferred and current taxes

1

(7)

Long-term liabilities

4,435

4,648

Short-term liabilities

440

606

Subordinated loans

1

6

Acc. payables & other fin. liabilities

9

22

Other

1,188

1,496

• Interest income increased, due to lower funding costs

• Result from financial transactions decreased, due to fewer

internal sales of mortgages, and increased value of the Fair

Value mortgages mainly due to the lower spreads on the

RMBS market

• Pre 1-1-2009 origination:

—

mortgages: marked-to-model

—

liabilities: marked-to-market

—

derivatives: marked-to-market

• Post 1-1-2009 origination:

—

mortgages: amortised cost

—

liabilities: amortised cost

—

derivatives: marked-to-market

Profit and loss statement (

€

m)

Key highlights

Amstelhuys

H1 2014 H1 2013 FY 2013 FY 2012

Net Interest Income 15 11 33 22

Net Commission & Fee Income (8) (9) (20) (19) Result from Financial transactions 27 73 103 (54)

Expenses (2) (2) (5) (9)

Result before tax 32 72 112 (60)

Technical result

made on operating businesses

•

Technical result drivers

―

Life: mortality / disability / expense margins

―

GI: expense / commission / claims margins

―

non insurance: operating margins

Long term investment return

attributable to shareholders

•

Long term investment return on shareholder assets

―

risk free return

1

on total equity

―

equity risk premium +3.5%, property risk premium +2.0%,

and mortgages (Life segment) +0.8%

•

Long term investment return on policyholder assets

―

Life: spread of 0.2% on policyholder assets attributable to shareholders

―

GI: risk free return

1

on liabilities

+

Incidentals / one-offs

•

Exclusion of incidentals / one-offs

+

/

-1. Collateralised AAA curve

Key building blocks

Detail

Calculation of long term investment return

Long term investment return calculation methodology

• Risk free return on total equity

―

reference rate (10y coll. AAA return) * average total equity

• Risk margins earned on own risk portfolio

―

3.5% on average own risk equities

―

2.0% on average own risk property

―

0.8% on average own risk mortgages (Life segment)

• Excess return earned on policyholders’ funds

―

0.2% on average assets backing traditional life insurance liabilities

―

reference rate (10y coll. AAA return) * average assets backing GI reserves

Actual long term investment return H1 2014

1

• Risk free return on total equity

―

(1.65% /2) * 3,038 -

€

1m =

€

24m

• Risk margins earned on own risk portfolio

―

(3.50% / 2) * 3,362 -

€

1m =

€

58m

―

(2.00% / 2) * 2,159 -

€

5m =

€

17m

―

(0.80% / 2 ) * 5,035 -

€

1m =

€

19m

• Excess return earned on policyholders’ funds

―

(0.2% / 2) * 34,998 -

€

4m =

€

31m

―

(1.65% / 2) * 1,768 =

€

15m

• Total Long Term Investment Return of

€

163m (H1 2013:

€

177m

2

)

1. LTIR corrected for profit sharing at Delta Lloyd Germany and excluding Amstelhuys 2. To reflect IFRS10 impact, H1 2013 figures are restated. Reported H1 2013 LTIR:€181m

Table of contents

I. Key highlights and business overview

3

II. Financial review

13

III. Concluding remarks

28

Appendix:

A. Information by segment

33

B. Embedded value

49

C. Investment portfolio

58

D. Financial and capital information

68

1. Change in net worth due to investing in new business

Capital and surplus generation

€

m

H1 2013

Operational surplus generation:

229

Life in-force profits

214

New business strain

1

(42)

General Insurance profits

46

Bank & Asset Management

31

Other

(19)

Movement in capital requirement

(43)

Life In-force

₀

New business strain

(51)

General insurance

(13)

Bank & Asset Management

20

Operational capital generated

186

Operational capital generation

H1 2014

239

237

(43)

30

26

(10)

5

20

(42)

16

11

244

1. Includes non-controlling interests from ABN AMRO NV

•

Slightly higher operational earnings compared to H1 2013 (

€

137m)

•

Economic variance enhanced by improved investment returns

Life EEV

1

(

€

m)

Life European embedded value increased to

€

4.5bn

Operational earnings

€

139m

19

8

0

111

37

EEV H1 2014

4,539

Capital adjustments

(21)

Economic variance (incl. exceptional items) Other operating variances Operating assumption changes Experience variance

(17)

Expected return NBV EEV FY 2013

4,403

Update on yield curves

Historical Evolution of Curves

1,2,3

Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14

Coll. AAA

ECB AAA

Swap

1. 10-year point

2. A UFR was introduced in the Swap and ECB curves per H1 2012 3. A UFR was introduced in the Coll AAA curve per H1 2013

Duration (in years) 1 2 3 4 5 10 15 20 30

End of June 2014 Coll. AAA 0.29 0.31 0.45 0.59 0.76 1.65 2.24 2.53 2.93 ECB AAA (0.01) 0.02 0.12 0.28 0.47 1.45 2.08 2.35 2.71 Swap 0.29 0.31 0.38 0.50 0.66 1.47 1.96 2.19 2.60 End of December 2013 Coll. AAA 0.38 0.53 0.83 1.10 1.38 2.44 3.03 3.25 3.51 ECB AAA 0.09 0.25 0.49 0.78 1.08 2.27 2.81 2.97 3.19 Swap 0.38 0.53 0.76 1.01 1.26 2.21 2.69 2.83 3.10

Yield curve development

Curves: H1 2014 versus FY 2013

-0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Year

31-12-2013* Coll AAA UFR 31-12-2 013* Swap UFR 31-12-2013* ECB AAA UFR 31-12-2013* SOLV2 LP100 30-06-2014* Coll AAA UFR 30-06-2 014* Swap UFR 30-06-2014* ECB AAA UFR 30-06-2014* SOLV2 LP100

Spread between coll. AAA and ECB AAA slightly widened

Curves: H1 2014 versus FY 2013

-0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Year

31-12-2013* Coll AAA UFR 31-12-2013* ECB AAA UFR 30-06-2014* Coll AAA UFR 30-06-2014* ECB AAA UFR

spread 21 bps spread 17 bps

No material change in key risk exposures

145

(145)

146

(146)

133

(133)

151

(151)

148

(148)

140

(140)

+10%

-10%

Property

(55)

58

131

(118)

(201)

212

(28)

35

IGD

3

FY 2013

121

(141)

159

(148)

21

(18)

3

14

EEV

4

(12)

14

146

(138)

(373)

400

(7)

(1)

Shareholders’

funds

133

(131)

99

(90)

10

0

(9)

11

EEV

4

(20)

21

150

(136)

(302)

322

(19)

22

Shareholders’

funds

(56)

60

124

(118)

(269)

286

(20)

25

IGD

3

H1 2014

Key sensitivities (

€

m)

1

Sensitivity

2

Interest

rate risk

+25 bps

-25 bps

Credit risk

+50 bps

-50 bps

Equity

+10%

-10%

Funding spread risk

5

+50 bps

-50 bps

1. IGD, EEV and Shareholders’ Funds sensitivities after tax

2. Credit sensitivity shown as increase/decrease in credit spreads; equity and property market value sensitivities shown 3. IGD sensitivities are based on local GAAP

4. These sensitivities have not been applied to the non-covered business assets and include VIF sensitivities 5. FY 2013 funding spread sensitivities have been restated (NHG guaranteed mortgages not taken into account)

1. IGD sensitivities after tax, based on local GAAP

2. Credit sensitivity shown as increase/decrease in credit spreads; equity and property market value sensitivities shown 3. Only interest rate movements have a material impact on required capital

4. FY 2013 funding spread sensitivities have been restated (NHG guaranteed mortgages not taken into account)

n.a

n.a

(3%)

3%

n.a

n.a

(55)

58

(3%)

3%

(56)

60

+50 bps

-50 bps

Funding spread risk

4

n.a

n.a

n.a

n.a

n.a

n.a

(19)

20

IGD Required

capital effect

3

7%

(7%)

7%

(6%)

(10%)

11%

0%

0%

IGD ratio

effect

133

(133)

131

(118)

(201)

212

(28)

35

IGD Available

capital effect

FY 2013

7%

(7%)

6%

(6%)

(13%)

14%

1%

(1%)

IGD ratio

effect

n.a

n.a

n.a

n.a

n.a

n.a

(22)

24

IGD Required

capital effect

3

140

(140)

124

(118)

(269)

286

(20)

25

IGD Available

capital effect

H1 2014

IGD sensitivities (

€

m/%)

1

Sensitivity

2

Interest

rate risk

+25 bps

-25 bps

Credit risk

+50 bps

-50 bps

Equity

+10%

-10%

Property

+10%

-10%

Summary of key risk exposures

Differences between FY 2013 and H1 2014

•

Impact of interest rate sensitivity changed

—

asset and liability impact increased due to decreased interest rate curves (convexity impact)

—

increase in liability impact is larger than increase in asset impact, resulting in decreased sensitivity of

IGD available capital and shareholders’ funds to interest rate increases

—

for EEV this is compensated by a changed VIF impact for contracts with profit sharing and guarantees

•

Impact of credit spread sensitivities changed

—

increased credit risk exposure (due to selling Sovereign AAA bonds with low credit risk) increased impact

on IGD and shareholders’ funds

•

Impact of equity sensitivity changed

—

limited change for IGD and shareholders’ funds

—

decrease in impact for EEV due to changed VIF impact for contracts with profit sharing and guarantees

•

Limited change in property sensitivities

•

Funding spread sensitivity changed

—

sensitivity for FY2013 restated; NHG guaranteed mortgages not taken into account in sensitivity, in line

with Basel methodology

Table of contents

I. Key highlights and business overview

3

II. Financial review

13

III. Concluding remarks

28

Appendix:

A. Information by segment

33

B. Embedded value

49

C. Investment portfolio

58

D. Financial and capital information

68

Other own risk assets:39.6

Mortgages (excl. securitised): 10.3

Loans: 1.7

In

€

bn, as at H1 2014

Securitised mortgages: 6.3

Overview of investments

80.2

28.5

51.6

Total AuM

Securitised mortgages: 5.1

Third Party

1

1. Includes€4.3bn off-balance sheet assets,€3.2bn separate accounts,€14.1bn unit-linked portfolio and other items 2. Own risk assets are based on management views on risk and differs from IFRS classification of own risk assets

1. Excluding preference shares, private equity and others, including equity derivatives

2,233

Austria

2,347

Netherlands

4,401

Germany

Bond portfolio, 10 largest issuers

€

m

France

2,179

Belgium

1,701

Group Securitisations

1,497

Rabobank

807

European Investment Bank

732

Italy

720

European Commission

709

Total top ten

17,327

Equity concentrations

€

m

Van Lanschot

223

BinckBank

69

Arcadis

58

TKH Group

49

BAM

40

Galapagos

37

Exact holding

32

Ten Cate

27

Telegraaf Media Group

23

Kendrion

22

Total top ten

581

Equities (H1 2014) =

€

2.2bn

1

Fixed income (H1 2014) =

€

34.2bn

Overview of equities & fixed income

NR

1%

21%

<=BBB

15%

A

AA

22%

AAA

41%

30%

5% Stakes

shares

10%

Ordinary

Equity

investments

60%

Mortgage-backed and asset-backed securities H1 2014

€

m

Nominal value

Market value

% Market value to

nominal value

RMBS (mainly own originated mortgages)

2,144

2,136

100%

German Postal Pensions

150

182

121%

ABS CDO

18

2

13%

CDO / CLO

44

31

70%

US life settlement bond

71

14

20%

Transport

41

43

103%

Student Loans

16

15

93%

SME Loans

14

14

98%

Other

85

85

101%

Total

2,584

2,521

98%

Exposure to southern Europe & Ireland increased

484 240 6 181 50 6 Corporate 215 215 -Loans 943 457 47 314 124 -Collateralised

(€m)1 (Sub) Sovereign Financials Total

Greece - - 6 Ireland 343 72 590 Italy 755 56 1,306 Portugal 43 62 158 Spain 524 142 1,578 Total 1,665 332 3,639

Exposure (sub) sovereign bonds at fair value

1

(

€

m)

178

FY 2011 FY 2012 FY 2013

1. Exposures includes accrued interest and are based on ‘country at risk’. Loans at amortised cost. Market value of loans amounts to€234m as per H1 2014 59 H1 2014 503 1,665

•

CDS on sovereigns Spain

(

€

260m nominal) to cover

default risk

•

Exposures increased given

relatively favorable risk

return trade off

—

strict monitoring of

H1 2014 split by asset class (

€

m)

Retail

Institutional

Fixed income

2,028

11%

5,214

27%

Equity

4,076

21%

2,540

13%

Mix

3,832

20%

669

4%

Real estate

295

2%

357

2%

Subtotal

10,232

54%

8,781

1

46%

Total FuM

19,013

Third party funds breakdown by asset class

H1 2014

(

€

m)

Real Estate Investments

Delta Lloyd Life Belgium 146

Delta Lloyd Germany1 ₆₅₀

Delta Lloyd Life 1,662

Real Estate Investment Funds2

DL Life 153 DL Other 50 Total 2,661 47.8 Retail Ridderkerk Ridderhof 40.9 Res. Amsterdam Westerdoksdijk 55.8 Office Amsterdam Mondriaantoren

Location Type Market value

Brusselse Poort Maastricht Retail 56.0

C. v. Maarssenplein Diemen Retail 53.0

Piazza Centre Gorinchem Retail 36.1

Aan de Kant Uithoorn Res. 29.3

Mondriaantoren (own use) Amsterdam Office 29.2

Marslaan Krommenie Res. 28.2

Boeierlaan Zaandam Res. 28.1

Residential

38%

Commercial

26%

Offices

36%

1. Includes€69m indirect property, which is included under ‘Equity’ in own risk assets at slide 21, and of which€11m is classified as ‘Ordinary shares’ in Equities at slide 59.€58m is private equity

2. Included under ‘Equity’ in own risk assets at slide 21 and under ‘Equity investments’ in Equities at slide 59

Key highlights

Split by use H1 2014

Top 10 largest Dutch exposures (

€

m)

Overview of real estate portfolio

• €2.7bn real estate portfolio

—

of which€2.5bn is direct real estate and

€0.2bn is through real estate funds

• High quality investment of which mainly upmarket rented houses/apartments, stores and small offices

• Occupancy rate of Dutch direct real estate portfolio is very high for Residential

—

Residential (€941m) 97%

—

Offices (€299m) 77%

1. Nominal value

2. Based on gross exposure

3. Indexation by external party (Stater)

H1 2014 FY 2013 FY 2012 FY 2011

Delta Lloyd portfolio (€bn)1 _{12.5 12.4 12.0 12.1}

No. of loans 64,245 63,752 61,706 61,481 No. of private sales, YtD 109 269 224 132

No. of foreclosures, YtD 19 29 23 43

No. of losses, YtD 99 199 151 107

Loss amount (€m), YtD 2.8 6.6 4.8 3.8 Loss ratio (bps of portfolio) 2.2 5.3 4.0 3.1

<70% 10%

Total:

€

12.5bn

1 70-90% 10% 90-100% 6% 100-110% 6% 110-120% 7% >120% 15% NHG 46%

•

Traditionally low losses

•

Fiscal environment –main part of interest payments are tax deductable. The combination of tax deductibility and tax sufficient capital build-up schemes are the main reasons for high LTFVs

•

Reasons for high recoveries on defaulted mortgages

— strict underwriting policy and strong arrears management

— strong social support system

— very strict bankruptcy laws

— savings schemes (capital) are attached to the mortgage i.e. investment accounts and savings policies

— the mortgage deed is senior to tax

Key highlights

Highlights mortgage portfolio

1

Loan to market value split

3

Overview of Dutch mortgages

Arrears (% of loans)

2

2.8% 0.5% 0.4% 0.3% 1.6% 2.6% 0.6% 0.5% 0.3% 1.2% <2M 2-3M 3-6M 6M+ Total FY 2013 H1 2014

Total:

€

3.1bn

1

H1 2014 FY 2013 FY 2012 FY 2011

Delta Lloyd portfolio (€bn) _{3.1 3.2 3.3 3.6} No. of loans _{32,131 32,190 32,714 34,428}

No. of foreclosures (YTD) _{15 22 28 18}

Loss ratio (bps of portfolio) _{0 0 0 0}

< 70% 30% 100-110% 6% 90 - 100% 32% 70 – 90% 29% > 110% 3% 1. Nominal value

2. Based on gross exposure

3. Indexation by external party (Stadim)

Key highlights

Highlights mortgage portfolio

1

Original loan to indexed market value

3

Overview of Bank Belgium mortgages

3.6% 0.0% 0.3% 0.5% 2.8% 2.5% 0.1% 0.3% 1.6% 0.6% <2M 2-3M 3-6M 6M+ Total FY 2013 H1 2014

Arrears (% of loans)

2

•

Strict and punctual follow up on default

•

Low arrears and very low losses

•

Stable portfolio is the combination of significant new production for affluent customers, compensated by many pre payments (due to low interest rates)

•

Stable house prices

— slightly positive evolution in house segment <500k

1.86% 0.80% 0.94% 0.12% 3.72% <2M 2-3M 3-6M 6M+ Total 0.15% 0.31% H1 2014 FY 2013 FY 2012 FY 2011 0.12% 0.15% Total: €1.4bn Interest only 25% Linear 12% Annuity 63% Service 12% Leisure & tourism 3%

Capital goods 2%

Banks & financial

intermediation 4% Healthcare11% Food, beverage &tobacco 3% Other 20% Private individuals 9% Real estate 20% Retail 10% Total:€1.4bn Construction & infrastructure 6%

1. Based on gross exposure instead of absolute amount

Key highlights

Sector split

Loss ratio (% of portfolio commercial credits)

Product split (H1 2014)

Arrears at H1 2014 (% of loans)

1

Overview of Bank Belgium loans

•

High annuity/linear redemption

•

Highly collateralised

•

Strict lending policy leads to low loss & decreasing loss ratio

•

Decrease of portfolio as a result of:

― new strategy to focus on affluent customers

― many prepayments (due to low interest rates)

Table of contents

I. Key highlights and business overview

3

II. Financial review

13

III. Concluding remarks

28

Appendix:

A. Information by segment

33

B. Embedded value

49

C. Investment portfolio

58

D. Financial and capital information

68

Preparing for future capital regimes

Solvency II

Theoretical

Solvency Criterion

(‘Solvency 1.5’)

•

Solvency 1.5 ratio for Dutch life insurance subsidiaries significantly

exceeds 100%

•

Theoretical Solvency Criterion to be replaced in 2015 with Solvency II

criteria for all Dutch insurance entities

•

Introduction of Solvency II per 1 January 2016

•

Final Solvency II specifications and framework still uncertain

—

matching adjustment

—

volatility adjuster

—

calibration/approval of internal model

—

taxation

Movement in shareholders’ funds explained

• Other results GI relates to

non-operational activities

(International Marine Business,

WGA ER)

• Decrease of collatera