Delta Lloyd NV rose the most in almost a month in Amsterdam after the Dutch insurer said its capital buffers should reach the higher end of its target range later this year.
The Solvency II ratio, a measure of an insurer’s strength under rules introduced in Europe this year, will be boosted by the sale of Delta Lloyd’s stake in private bank Van Lanschot NV and management of its assets and liabilities, the company said in a statement on Wednesday. The insurer has a pro forma ratio of 154 percent after completing a rights issue last month, within its target range of 140 percent to 180 percent, Delta Lloyd said.
Delta Lloyd rose as much as 4.8 percent, the most since April 20, and was trading at 4.06 euros at 11:15 a.m. The shares had fallen since Aegon announced its Solvency II ratio had dropped to 155 percent from 160 percent on April 12.
The rights offer and sale of the Van Lanschot stake will help resolve the company’s solvency issue, SNS Securities analyst Marcell Houben said in a note on Wednesday. After that, Delta Lloyd will be a solid life insurer in a mature market paying a high, stable and sustainable dividend, he said. Houben has a buy rating on the stock.
Source: Bloomberg