Delta Lloyd

COMPANY PROFILE

2015

DELTA LLOYD

+31 (0)20 546 1430 | www.deltalloyd.com

Insuring the future through renewable energy Editorial: Rosie DeWinter

With a rich history that spans more than two centuries, Delta Lloyd has established a leading and highly reputable position, now standing amongst Europe’s top 3 within the insurance market for onshore and offshore wind projects. With a dedicated team of wind energy experts in place, the company now boasts an insurance stake in more than 75% of the offshore wind farms located on the coasts of Europe PAGE 2

DELTA LLOYD With a history that dates back more than 200 years, Delta Lloyd now stands as one of the oldest life and general insurers in mainland Europe. Through a succession of mergers, alliances and acquisitions, the company boasts a successful organic growth and today, it is listed on Euronext Amsterdam and Brussels, and included in the Dow Jones SI World, Dow Jones SI Europe, AEX- and Bel-20 indices.

A reliable partner for insurance, pensions, investment and banking since its inception, in 1967 - initially under the name Hollandsche Sociëteit van Levensverzekeringen - joined forces with the Amsterdamse Maatschappij van Levensverzekeringen and was renamed Delta. In 1969, Delta merged with Nedlloyd and expanded into general insurance, creating the new, listed Delta Lloyd N.V. Offering products and services in general insurance, pensions, investments, asset management, banking, commercial and retail, Delta Lloyd has three distinctive distribution channels in the Netherlands, operating through four brands: OHRA, ABN AMRO Verzekeringen, Delta Lloyd and BeFrank. Where Delta Lloyd works closely with independent insurance advisors, OHRA is a direct writer, so customers can take out insurance cover and arrange their own financial services directly through this.

ABN AMRO Verzekeringen serves clients through the branches of ABN AMRO Bank. BeFrank is a modern online pension provider competing in the market alongside insurance companies and pension funds.

Achieving a premium income of €3.9 billion in 2014, Delta Lloyd

now manages investments of an estimated €85 billion.

RENEWABLE ENERGY PORTFOLIO Boasting an enviable position as the largest Dutch co-insurance company in the commercial insurance market, Delta Lloyd’s renewable energy portfolio now forms an important segment of the total technical insurance portfolio and accounts for around 30%.

Meeting the electricity needs of 12 million households through onshore and offshore wind, Total World Energy speaks with Manager Large corporate, Alex de Langen, and Willem Schrijver, Underwriting Manager, who explain the company’s tactical move into this ever growing industry and why they are leading the insurance pack with a dedicated team of renewable energy experts.

With a rich history in construction and machinery breakdown spanning six decades, Delta Lloyd made the strategic decision to follow its loyal contractors as they began to venture more into the offshore industry.

“We saw that the Netherlands was changing from a country known for making things to one that produces services and of course, one of these is energy,” explains Schrijver. “As energy producing firms and construction firms moved offshore, it was a normal follow on for us, having always insured these contractors.

“We saw the making industry disappear and wind turbines come on land. It became common practise for the company and we set out to follow the energy market as it continues to grow over the next 20 years.”

“We followed the needs of

our customers in this instance and thought, if we want to take advantage of this movement, then we need to step up and remodel our business otherwise we’ll be out of business – this was almost ten years ago and is more actual than ever now over the last few years,” adds de Langen.

Today, Delta Lloyd boasts an international track record with 12.000 MW of wind energy insured and stands in the top 3 of Europe’s insurance market for onshore and offshore wind projects, in both the construction and operational phases.

Initially beginning its journey in wind energy in the onshore wind turbine industry, Delta Lloyd insured the very first Dutch wind farm, providing it with machinery breakdown cover. “Erecting onshore turbines came into our focus straight away and we started this about 20 years ago.

Ten years ago, we then ventured into the offshore wind industry from our contractors and due to the erection of two large wind farms directly in front of the Netherlands. The only thing they wanted was insurance in place so they could finance their project and at the time, Delta Lloyd was the only company willing to insure these kind of risks,” Schrijver explains.

With offshore wind farms comes greater risks and it is the assessment and management of these which has placed Delta Lloyd in such a pedestal position.

RISK MANAGEMENT “If we can insure these risks, the chance of getting an investment for the developer gets much bigger, so this is why we decided to step into this market,” explains Schrijver. Delta Lloyd wants to PAGE 3

© Delta Lloyd

support the development of the renewable energy market and is therefore prepared to insure these kinds of unfamiliar risks.

Over time, the damage to wind turbines is inevitable with 40% of claims resulting from cable damage - 85% of the total damage costs.

If something goes wrong offshore, it is much more difficult to repair and so the costs rise, often as much as ten times the price for repairs made onshore.

“Even if a small thing happens offshore, you still get a large claim straight away

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which I think most insurers don’t like. A working day at sea is not a working day on land – it is very weather dependent so you have to be willing to see that risk and take action if necessary,” explains de Langen.

Customised insurance policies are imperative, alongside the knowledge of experts and experience in the offshore market. Evolving to become a specialist in this field, Delta Lloyd set up a dedicated renewable energy team, combining the knowledge of engineers, underwriters and

loss handling.

Employing more than 4,200 staff, of which 3,700 in the Netherlands and more than 500 of these stationed permanently in Belgium, Schrijver explains the company’s engineers follow the obligatory offshore training program.

In the underwriting department, an open mind and common knowledge comes in very handy: “It’s a mix of relationship management, knowledge and an open mind as you have to ensure universities and main influences are on board and mix with

DELTA LLOYD all different types of people, from finance to technical departments - so it’s important that everyone in the market knows them. In the claims department you must be aware, once more, of what’s around you, and in the change in demands,” Schrijver adds.

To have financial close on a project, insurance must be in place but in many cases, there are time restrictions in underwriting a big project such as an offshore wind farm so flexibility in working times within the team is imperative.

AN EXTENSIVE DATABASE With a leading position in the industry, Delta Lloyd remains comfortable. In possession of a database that now stretches back over two decades, the

company has more than ten years’ experience in the offshore wind industry and more than 60 years in offshore dredging.

“I think this gives us a head start in the industry in addition to maintaining contacts and relationships, we welcome competition,” explains Schrijver.

“If you see what’s happening offshore, there is a lot of capacity to insure and if it’s all down to us, we can’t be alone and do not have the capacity to insure it all.”

“We have a clear position in the market right now and as the only Dutch insurance company in the European renewable energy market, we have a clear focus on offshore and onshore,” adds de Langen. “We want to be involved in new specific projects such as tidal energy and other new business ventures. We have

a distinctive positioning in the market and that’s what we’re proud of - it’s a niche and a speciality.”

FOLLOWING THE CHANGE With renewable energy fast becoming a growing phenomenon, what is the company’s plan for the future within this industry?

“I’d say the plan is to follow all kinds of energy changes that will happen – our current portfolio consists of wind energy, geothermic drilling operations and tidal energy and we will follow that change because energy is needed everywhere and always. I think it’s hard to say which will be the biggest in 50 years but the main point is that you have to follow them,” Schrijver explains.

Delta Lloyd Insurance Your partner in Offshore Wind

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“We will follow every type of energy producing system and will be keen to insure and maintain our knowledge and experience in the field. The Netherlands is known for its water management, that’s why we want to stay, focus on and maintain a relationship with the water,” adds de Langen.

Joining Delta Lloyd more than 12 years ago, Alex de Langen studied Economics at university. Working within various management jobs in general insurance, pensions and life insurance, he has worked in this position in general insurance for three years now and is responsible for large corporate, co-insurance and

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intermediaries.

A chemical engineer, Schrijver explains he joined the pharmaceutical industry after university, spending ten years in sales and marketing before joining Delta Lloyd. “After two years, I came across the technical lines and felt at home again, the same way of dealing with risks and thinking about what’s happening that I enjoyed during my studies.” 14 years on and Schrijver has held his underwriting position, managing a portfolio for eight years.

CREATING VALUE Sustainability in itself is very important to Delta Lloyd, it’s

not restricted to insurance or underwriting, it also includes investments. “It means that we create a positive impact on society with our core activities.

And stimulating the renewable energy transition is one of our focus themes,” explains de Langen.

“On the other hand, we also need to create financial value so it’s an interesting market to position us in as we can get revenue. So it’s a combination of these two – revenue on the one hand and positive impact on society on the other.”

Insuring a large proportion of wind farms in the North Sea and many on England’s west

DELTA LLOYD

coast, de Langen explains of the 2,500 turbines erected, Delta Lloyd has insured almost 2,000 of these offshore, with a similar percentage in Belgium too. “In 75% of the offshore wind farms we have part of the insurance - most go through our hands here.”

With continued in-house dialogues with its employees and external dialogues with its stakeholders, Delta Lloyd is very interested in sustainability and with its continued interest in energy, the company is committed to leaving behind a clean legacy and environment for future generations to come.

Looking to the future and

Delta Lloyd wants to maintain its reputation as an ethical and reliable insurer – “Our focus is renewable energy, onshore and offshore wind, new business ventures and staying close to our own identity as a Dutch knowledge insurer.” As one of the main companies in Europe offering insurance for renewable energy projects, the company remains proud of its achievements and dedicated contribution to the industry.

Maintaining its negotiation skills and staying flexible has helped to ensure the company’s success, not to mention its sheer determination to build on its already extensive

experience and knowledge within the renewable energy field.

“We don’t do business with anybody, our business partners have been our business partners for a very long time.

We have over 60 years of experience in dredging which is something that we take with us and our engineers have had vast experience in various types of industries, especially technical.

“Like many big insurance companies, we won’t back out – we’re in it for the better and for the worse, we are here to stay and we’re in it for the long haul,” de Langen concludes

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