annual report 2002 by liwenting

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									                                     delta lloyd group
               annual report 2002
3    profile                                                87    explanatory notes to the consolidated technical
                                                                  account care insurance
4    strategic framework                                    88    consolidated profit and loss account mediation
                                                                  activities
6    organisation chart                                     89    consolidated profit and loss account banking
                                                                  operations
7    Supervisory Board and Executive Board                  90    explanatory notes to the consolidated expenses
                                                                  and commission
11   KEY FIGURES DELTA LLOYD GROUP                          92    remuneration Executive Board
                                                            94    remuneration Supervisory Board
13   KEY FIGURES BY DIVISION                                96    balance sheet of Delta Lloyd NV after appropriation
                                                                  of profits
14   MESSAGE FROM THE SUPERVISORY BOARD                     97    profit & loss account of Delta Lloyd NV
                                                            98    explanatory notes to the balance sheet and
16   THE EXECUTIVE BOARD’S REPORT                                 profit and loss account of Delta Lloyd NV
23   corporate governance and risk management
26   Delta Lloyd Group and its employees                          OTHER DETAILS
27   sponsoring and donations                               106   appropriation of profits and dividend
28   divisions                                              107   auditors’ report
                                                            108   outline of major group companies
     ANNUAL ACCOUNTS
40   consolidated balance sheet after appropriation         110   KEY FIGURES 1993 – 2002
     of profits
43   consolidated profit & loss account                     113   CURRICULUM VITAE SUPERVISORY BOARD
44   consolidated cash flow statement
46   general notes to the annual account                    114   DELTA LLOYD GROUP PERSONAL DETAILS
54   explanatory notes to the consolidated balance
     sheet                                                  116   DELTA LLOYD GROUP ADDRESSES
77   explanatory notes to the consolidated profit &
     loss account
80   consolidated technical account life insurance
81   explanatory notes to the consolidated technical
     account life insurance
83   consolidated technical account general insurance
84   explanatory notes to the consolidated technical
     account general insurance
86   consolidated technical account care insurance



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                                    Delta Lloyd Group
                                          profile


     As a customer and service oriented financial services        Employing approximately 7,500 staff after the joint
     provider, Delta Lloyd Group offers a wide range of           venture with ABN AMRO, Delta Lloyd Group is
     products under the brands Delta Lloyd and OHRA               divided over the following divisions:
     through distribution channels chosen by individual
     and commercial customers. Products range from                • Delta Lloyd Insurance;
     simple savings products to complex insurance and fi-           insurance via independent intermediaries in the
     nancial planning. Delta Lloyd works together intensely         Netherlands
     and exclusively with independent insurance inter-
     mediaries and OHRA focuses directly on individual            • OHRA Insurance;
     and commercial customers. The joint venture with               insurance directly to individual and commercial
     ABN AMRO announced in November 2002 enables                    customers in the Netherlands
     Delta Lloyd Group to serve customers through
     the banking channel under the label of ABN AMRO.      • Delta Lloyd ABN AMRO Insurance;
                                                             insurance via the distribution network of ABN
     In addition to prominent Dutch insurance operations,    AMRO in the Netherlands
     Delta Lloyd operates divisions for Asset Management
     and banking, together with divisions in Germany, • Delta Lloyd Asset Management;
     Belgium and the Netherlands Antilles. Delta Lloyd       asset management in the Netherlands
     aims to be one of the leading financial services pro-
     viders in the Netherlands, Belgium and Germany.       • Delta Lloyd Property;
                                                             property investment

                                                                  • Delta Lloyd Banking;
                                                                    retail and private banking in the Benelux, asset
                                                                    management in Belgium

                                                                  • Delta Lloyd Deutschland;
                                                                    life insurance, private banking and asset management
                                                                    in Germany

                                                                  • Delta Lloyd Life Belgium;
                                                                    life insurance in Belgium and Luxembourg

                                                                  • Ennia Caribe;
                                                                    insurance in the Netherlands Antilles and Aruba




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                                     strategic framework


     As an important player in the field of financial services,    • Responsibility and involvement
     Delta Lloyd Group wishes to distinguish itself in the         The starting point for all activities is a deep feeling of
     market. The main focus of the group is on being a             responsibility for and involvement with customers,
     socially involved financial services provider that            stakeholders and society in general. Employees at all
     clearly contributes to the development and affluence          levels are therefore encouraged to build knowledge
     of society.                                                   and expertise in their field, to take responsibility
                                                                   for their work and to develop a problem-solving
     The continuous pursuit of a proper balance between            mentality.
     entrepreneurial spirit and social responsibility makes
     Delta Lloyd an open and non-conformist organisation           • Team spirit
     that does not run away from its responsibilities. For         The financial business is a people business. Co-opera-
     Delta Lloyd Group the customer is central and the             tion is a prerequisite. Critical success factors in building
     Group acts accordingly, both in its relationships             team spirit are involvement, personal contacts and
     with intermediaries and directly with customers.              placing a value on results.
     Having its heart in society and a keen eye for social
     developments, both in its direct and indirect envi-           • Open communication
     ronment, Delta Lloyd consciously focuses on the               Trust, honesty and transparency are essential for good
     development and marketing of products and services            co-operation.
     that reflect its involvement and integrity, and on
     creating a working environment that offers its em-            • Flexibility
     ployees many opportunities.                                   The continuity of the operations is subject to our
                                                                   ability to foresee social changes. Readiness to change
     Seven core values                                             is a prerequisite in this respect.
     The guiding principles behind all Delta Lloyd Group’s
     activities are the company’s seven core values.These          • Enterprise
     are:                                                          An active and entrepreneurial company needs entre-
                                                                   preneurial employees who show initiative and are
     • Integrity                                                   committed to achieving results.
     This covers all the norms, values and rules that ensure
     the organisation maintains its integrity. Customers
     and business partners are also expected to operate
     with this same ‘fairness’.

     • Central focus on the customer
     The customer’s interests are the first priority in the
     conduct of business. Knowledge of the customer’s
     needs, offering a high level of service, keeping agree-
     ments and a good complaints procedure are vital in
     meeting customer demands.




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                                               strategic framework




     The 7-3-7 model                                                • Achieving top-three positions in defined
     Delta Lloyd has developed a straightforward model              markets
     for the conduct of business. In addition to the                Delta Lloyd wants to compete only in markets in
     seven corporate values and the three strong brands             which it is a winner, or can be one.
     (Delta Lloyd, OHRA, and ABN AMRO), seven strategic
     pillars define the group’s long-term strategy.                 • Maximum synergy
                                                                    The best possible synergy throughout the Group is
     Seven strategic pillars                                        essential for achieving cost savings and increasing
                                                                    profitability. Expertise and knowledge must be ex-
     • Multi-channel, multi-label and single back                   changed, without obstacles, among and across all
     offices                                                        divisions in the Group.
     Delta Lloyd Group offers its customers the possibility
     to buy insurance through several distribution channels         • Stringing beads
     (multi-channel), with strong brands (multi-label), and         Apart from organic growth, revenue has to improve
     with the administration performed by joint facilities          through mergers, joint ventures and acquisitions.The
     wherever possible (single back offices). Individual            strategy for take-overs is that of ‘stringing beads’.
     and commercial customers in the Netherlands can                Mergers and take-overs will be focused mainly on a
     choose from insurance through intermediaries, through          stronger distributive power and an added value to
     the banking channel or direct.                                 the Group.

     • Life and Asset Management as a core activity                 • Focus on the Netherlands, Belgium
     Delta Lloyd Group is currently one of the largest asset        and Germany
     managers in the Netherlands. The life and pension
     activities are traditionally the Group’s most important
     operating area.

     • Development and retention of profitable ac-
     tivities in the area of General Insurance and
     Care Insurance
     This is essential because Delta Lloyd wants to be a
     prominent player here in sub-markets. In addition, these
     activities provide an extensive customer base that
     creates opportunities to sell additional products in
     the field of Asset Management and Life. Delta Lloyd
     Group concentrates on the Dutch market for these
     activities.




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                                                    organisation chart


                                                                              Delta Lloyd Insurance            Delta Lloyd Life
                                                                                                               Delta Lloyd General Insurance
                                                                                                               Delta Lloyd Care
                                                                                                               Delta Lloyd Marketing & Sales
                                                                                                               Nuts Insurance
                                                                                                               Praevenio Technical Insurances
                                                                                                               B. Franco Mendes


                                                                              OHRA Insurance                   OHRA General Insurance
                                                                                                               OHRA Life
                                                                                                               OHRA Care
                                                                                                               Nationaal Spaarfonds
                                                                                                               OHRA Investments


                                                                              Delta Lloyd ABN AMRO Insurance


                                                                              Delta Lloyd Asset Management     Delta Lloyd Asset Management
                                                                                                               OHRA Asset Management

DELTA LLOYD GROUP              Delta Lloyd Group
Amstelplein 6                                                                 Delta Lloyd Property
1096 BC Amsterdam                                  Executive Board
The Netherlands                                    and supporting units
                                                                              Delta Lloyd Banking              Delta Lloyd Bank
P.O. Box 1000                                                                                                  OHRA Bank
1000 BA Amsterdam                                                                                              Delta Lloyd Bank Belgium
The Netherlands                                                                                                Delta Lloyd Securities (Belgium)
T +31 (0)20 594 9111                                                                                           Bank Nagelmackers 1747 (Belgium and Luxembourg)
F + 31 (0)20 693 7968
E cc@deltalloyd.nl
                                                                              Delta Lloyd Deutschland          Berlinische Lebensversicherung
                                                                                                               Gries & Heissel Bankiers
www.deltalloydgroep.com
                                                                                                               Delta Lloyd Investment Managers


                                                                              Delta Lloyd Belgium              Delta Lloyd Life Belgium
                                                                                                               Delta Lloyd Luxembourg
                                                                                                               OHRA Belgium


                                                                              Ennia Caribe                     Ennia Caribe Life
                                                                                                               Ennia Caribe General Insurance
                                                                                                               Amersfoortse Antillen
                                                                                                               OHRA Mortgage Bank



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         Supervisory Board and Executive Board


                                  SUPERVISORY BOARD
                                  J.A.N. (Jacques) van Dijk, chairman
                                   V.A.M. (Vincent) van der Burg, deputy chairman
                                  C.P.J. (Peter) Appeldoorn
                                  L.J.M. (Leo) Berndsen (until 17 June 2002)
                                  H.C. (Caspar) Broeksma
                                  R. (Richard) Harvey
                                  R.H.P.W. (René) Kottman
                                  J. (Jan) Oskam
                                  A.B. (Tony) Wyand

                                  EXECUTIVE BOARD
                                  N.W. (Niek) Hoek, chairman
                                  R.L.M. (Rob) Hillebrand (with effect from 1 January 2003)
                                  P.J.W.G. (Peter) Kok
                                  P.K. (Paul) Medendorp (with effect from 1 January 2003)
                                  C.H. (Chris) Tesselhoff (until 1 April 2003)




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                                                             key figures Delta Lloyd Group
In millions of euros                                                               2002                2001




KEY FIGURES 2002 DELTA LLOYD GROUP

Revenue
Gross premium income Life insurance                               2,744.1                 2,686.6
Gross premium income General insurance                              809.8                   751.8
Gross premium income Care insurance                                 787.2                   707.9
Total gross premium income                                                   4,341.1                4,146.3

Other activities                                                               123.5                   76.4
Investment income                                                            1,021.5                1,399.6
Total revenue                                                                5,486.1                5,622.3

Result
Consolidated result
Life insurance                                                     152.3                    290.8
General insurance                                                   13.1                     18.8
Care insurance                                                      11.6                     22.8
Banking activities                                                   1.9                      3.1
Holding                                                            -21.3                     31.3
Result before taxation                                                        157.6                  366.8

Taxation                                                                      -19.9                  -67.4
Result after taxation                                                         137.7                  299.4
Minority interest                                                                  -                  -2.3
Net result                                                                    137.7                  297.1

Shareholders’ funds                                                          1,713.0                2,353.9

Number of staff on a full-time basis at
31 December                                                                   6,464                  6,506




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                                                             key figures per division
                                                                                Delta Lloyd      OHRA     Delta Lloyd    Delta Lloyd      Other       Total
In millions of euros                                                             Insurance    Insurance     Banking     Deutschland




KEY FIGURES 2002 PER DIVISION

Revenue                                                                          3,508.3       728.2        294.0          584.0        371.6      5,486.1

Result before taxation                                                            148.0          22.2           0.0           - 6.1       - 6.5     157.6

Shareholders’ funds                                                              1,378.1       223.5        325.6            48.4       -262.6     1,713.0

Total assets                                                                    18,932.0      2,781.2     4,764.1        5,443.6        859.9     32,780.8

Total liabilities                                                               17,553.9      2,557.7     4,438.5        5,395.2       1,122.3    31,067.6

Number of staff on a full-time basis at
31 December                                                                       2,220           988       1,223             924       1,109       6,464



KEY FIGURES 2001 PER DIVISION

Revenue                                                                          3,692.9       737.6        204.8          662.3        324.7      5,622.3

Result before taxation                                                            249.2          52.9           3.9            5.1       55.7       366.8

Shareholders’ funds                                                              1,801.1       193.6        345.4            -25.6       39.4      2,353.9

Total assets                                                                    18,909.9      3,475.4     4,765.1        5,499.2       1,589.0    34,238.6

Total liabilities                                                               17,108.8      3,281.8     4,431.1        5,524.9       1,538.1    31,884.7

Number of staff on a full-time basis at
31 December                                                                       2,307           966       1,311             986         936       6,506




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                                    message from
                                the Supervisory Board


     Annual Accounts and appropriation of profits             Another joint venture was eventually called off for      Supervisory Board meetings
     In accordance with the provisions of article 34 of the   commercial reasons. It concerned a co-operation          The Supervisory Board met six times in the year under
     Articles of Association, we have adopted the annual      with PGGM, the pension fund for health, mental and       review. Issues discussed include the Corporate Plan
     accounts for the year 2002 drawn up by the Execu-        social care, known as Careon.                            2003-2005, (intended) joint ventures with PGGM,
     tive Board.We submit these accounts to you for con-                                                               Yarden and ABN AMRO, cost control, development
     sideration in accordance with paragraph 4 of article     Other efforts were made in the year 2002 in the field    of Shared Service Centres, responsibilities of the
     34. Taking into account the certifying report of the     of transparensy and protection of the customer’s         Executive Board, as well as quarterly reports, annual
     auditors PricewaterhouseCoopers Accountants              position.The introduction of the Financial Information   figures and reports from the Audit Committee and
     N.V., which is included in the annual report, we         Leaflet, with important details and qualities about      the Remuneration/Nomination Committee. Discus-
     recommend that the shareholders approve these            financial products, was executed on time by the          sions on the quarterly and annual figures were always
     annual accounts. In accordance with article 35           Delta Lloyd Group. The GIDI Code of Conduct for          attended by the Executive Board and, with very few
     of the Articles of Association we have given our         information supply by intermediaries took effect         exceptions, by all members of the Supervisory
     approval to the resolution of the Executive Board        on 1 January 2002. Since then, Delta Lloyd Group         Board. In some cases, the Group Finance and Control
     that the almost all profit in the annual accounts be     has been applying this code to the appointment of        general manager and the auditors Pricewaterhouse-
     reserved. A dividend of s 0.2 million is assigned to     intermediaries. In addition, Delta Lloyd Group has       Coopers attended.
     preferred stocks A.                                      also signed the Code of Conduct of the Association
                                                              of Insurers in the Netherlands.
     The year 2002
     The disappointing developments on the stock markets      Members of the Supervisory Board are satisfied that
     have left a mark on the results of Delta Lloyd Group.    the efforts of employee participation, trade unions
     A sharply decreasing return on investments made it       and Delta Lloyd in 2002 have resulted in harmoni-
     necessary to place strong emphasis on cost control       sation of the terms of employment in Delta Lloyd
     in the year under review, for instance by reducing       Group. Instead of several Collective Labour Agreements
     the cost of new business, by improving IT systems        (for insurance, banking, care) and many different
     and by combining back offices of the general insur-      personnel schemes, all employees in Delta Lloyd
     ance operations in a Shared Service Centre (SSC).        Group will fall within the scope of an own custom-
     The General Insurance Service Centre in Arnhem           made Collective Labour Agreement with effect from
     and the Bodily Injury Service Centre in Amsterdam        2003.
     have been operational since 1 January 2003. At the
     same time, much attention was paid to an increased       The new head office for Delta Lloyd Group in Amster-
     service quality, such as improved contact with inde-     dam was officially opened on 5 November 2002.
     pendent intermediaries and an extension of Internet
     activities, including the extranet Delta Lloyd Digital
     Domain (DDD).

     A major step was the co-operation with ABN AMRO
     in the field of bancassurance, announced on 27
     November 2002. The joint venture combines the
     distributive power of the Dutch network of ABN AMRO
     and the insurance expertise of Delta Lloyd, and it
     considerably strengthens the Group’s position.




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                                                message from
                                            the Supervisory Board




     Tripartite consultation of Supervisory Board,            Supervisory Board and Executive Board                      Financial agenda
     Executive Board and Central Works Council                changes                                                    Delta Lloyd Group follows the financial agenda of
     The annual meeting between the Supervisory Board,        The Supervisory Board consists of nine members, two        shareholder Aviva plc and will therefore publish its
     Executive Board and Central Works Council took           of whom were recommended by Aviva and two re-              results for the six months of 2003 on 31 July 2003.
     place in October.The general theme in this meeting       commended by the Central Works Council.
     was “Development on the stock exchanges and in
     the market: opportunity or threat?”                      In 2002 the composition of the Supervisory Board
                                                              was changed as follows:

     Meetings of the Audit and Remuneration/                  Mr. L.J.M. Berndsen, former chairman of the Executive
     Nomination Committees                                    Board of Koninklijke Nedlloyd NV, retired from the Su-
     The Audit Committee and the Remuneration/Nomi-           pervisory Board of Delta Lloyd Group. Mr. Berndsen
     nation Committees are composed of members of the         accepted another Supervisory Board membership
     Supervisory Board to deal with specific tasks of the     in the financial services world. We are grateful for the
     Supervisory Board.                                       friendly way in which we have worked together
     The Audit Committee met five times last year. Subjects   and for his sharp financial insights. Mr. Berndsen’s
     under discussion included reports from Group             retirement left a vacancy in the Supervisory Board.
     Consolidation & Reporting about the quarterly
     and annual figures, compliance and Risk & Control,       The composition of the Executive Board did not
     composition of the Audit Committee, matching             change in 2002.
     (financial) reports with Aviva, Delta Lloyd Bank-
     ing group Finance Statute, allocation methods,           The Supervisory Board appointed R.L.M. (Rob)
     Brede Herwaardering and the development in the           Hillebrand (47) and P.K. (Paul) Medendorp (48)
     (financial) reports of insurance companies (Traas        members of the Executive Board of Delta Lloyd NV
     Committee and International Financial Reporting          with effect from 1 January 2003. Mr. C.H. (Chris)
     Standard ‘IFRS’). The Audit Committee meetings           Tesselhoff (61) will retire from the Executive Board
     were regularly attended by the Group Finance and         on 1 April 2003 when he reaches retirement age.
     Control general manager, the Group Audit & Con-
     sultancy general manager, the Group Actuary and the      Rob Hillebrand had been chairman of the management
     auditors PricewaterhouseCoopers.                         of OHRA insurance since 2000; OHRA is the direct
                                                              business division of Delta Lloyd Group. He has gained
     The Remuneration/Nomination Committee met four           extensive management experience in his 20-year
     times in 2002 and issues discussed included succes-      career with Delta Lloyd.
     sion, composition and remuneration of the Executive      Paul Medendorp had been director of Delta Lloyd
     Board.                                                   Deutschland since 1999, and chairman of the Executive
                                                              Board of the German division since 1 January 2001.
                                                              Before this period, he focused on the commercial
                                                              aspects of the Delta Lloyd Life operations. After a
                                                              few years in international hotel management, Paul
                                                              Medendorp switched to the insurance industry in 1983.
                                                              He has been working with Delta Lloyd since 1994.




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                                                                                        the Executive Board’s report
                                                                     2002 – a year of extremes



In millions of euros                      2002                2001   With a sense of understatement, the year 2002 can         Despite difficult external factors, all group divisions
                                                                     be considered an extremely turbulent one for the          were perfectly able to retain or even improve on
- Gross premium income       4,341.1             4,146.3             financial sector. Delta Lloyd Group had to operate in     their excellent competitive positions. A number
- Investment income          1,021.5             1,399.6             a very negative economic environment, with poor           of developments offset negative trends to some extent.
- Other activities            123.5                76.4              developments in the financial markets; substantially      There are, for example, opportunities in the pension
Revenue                                5,486.1             5,622.3   worse than expected after the events of 2001.At the       market. As Delta Lloyd Life generates most of its
Result   (before taxation)
                                        157.6               366.8    same time, tumultuous developments in Dutch politics      business from individual and group pension contracts,
Shareholders’ funds                    1,713.0             2,353.9   created many uncertainties. Consequently, after years     the company is gradually benefiting more from this
                                                                     of growth in premium income and results, the year         trend. Another important fact is that Life activities
                                                                     2002 ended with disappointing figures. This devel-        outside the Netherlands, with a lighter tax pressure,
Number of staff on a full
                                                                     opment not only affects the group, but also its           are showing notable growth. This applies mainly
time basis at
                                                                     customers. The effects can particularly be felt in in-    to Delta Lloyd Life in Belgium, but Delta Lloyd
31 December                             6,464               6,506
                                                                     vestments and life insurance.                             Deutschland is also developing favourably in this
                                                                                                                               respect. Delta Lloyd General Insurance business was
                                                                     As an early recovery of the economy seemed unlikely, stronger as an excellent position was created in some
                                                                     business last year focused mainly on the limitation sub-markets where the product portfolio linked up
                                                                     of risks.This was evident in a more cautious investment very well to developments in the market. OHRA
                                                                     policy and greater emphasis on cost control.              performed slightly better than expected in Care and
                                                                                                                               General Insurance.The banking group realised higher
                                                                     However, Delta Lloyd Group has been able to demon- income, due partly to Bank Nagelmackers 1747 being
                                                                     strate that it is and can remain a strong player in the consolidated completely for the first time in 2002.
                                                                     market, even when times are hard. The vitality of
                                                                     Delta Lloyd Group is underlined by the fact that it
                                                                     has been able to realise a major ambition amidst all
                                                                     of these uncertainties: adding a third distribution
                                                                     channel in the Netherlands through a 51 per cent
                                                                     stake in the joint venture with ABN AMRO.Through
                                                                     this joint venture, the group gains exclusive access
                                                                     to the distribution network of the Business Unit
                                                                     Netherlands of ABN AMRO. It has placed Delta
                                                                     Lloyd Group firmly in the leading group of Dutch
                                                                     insurers. At the same time, it is the realisation of the
                                                                     multi-channel and multi-label principle: in addition
                                                                     to sales through the Dutch ABN AMRO network,
                                                                     Delta Lloyd will also be sold through independent
                                                                     intermediaries and by OHRA as a direct writer. The
                                                                     starting point of this strategy is, and remains, a strict
                                                                     separation of distribution channels with their
                                                                     relevant brands of Delta Lloyd, OHRA and ABN
                                                                     AMRO Insurance.




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                                                                                         the Executive Board’s report

                                                       2002 – a year of extremes




JANUARY 2002                                          Most important results                                    The most important acquisition in 2002 was un-
Name changes                                          In the year under review, Delta Lloyd Group recorded      doubtedly the joint venture, announced in November,
With effect from 1 January 2002 the official          a steep drop in results before tax of 57 per cent to      with ABN AMRO allowing insurance distribution
name of the Group was changed from Delta              s 158 million and a decrease in the net result of 54      through the bank’s network. For a 51 per cent share
Lloyd Nuts Ohra to Delta Lloyd NV. For a              per cent to s 138 million. This drop in profits was       in the new venture – which will see the merger of
proper distinction between brand and total            mainly caused by disappointing results on the finan-      insurance activities – Delta Lloyd Group will pay at
organisation, Delta Lloyd NV is referred to as        cial markets, which affected all parts of the Group.      least s 262.5 million, depending on the venture’s
Delta Lloyd Group. The name of the British            In addition, a number of incidental items affected        revenue.
shareholder was changed from CGNU to                  the results including an extra deposit in the pension
Aviva plc in the summer of 2002.                      fund (s 31 million), extra contributions to provisions    While the results for 2002 are disappointing, Delta
                                                      including guarantee contracts (s 42 million) and          Lloyd Group believes that financial services are in the
APRIL 2002                                            investment in the new Shared Service Centre (s 30         long run about customer trust. Delta Lloyd Group
Co-operation on funeral insurance                     million).                                                 emphasises a prudent policy for all stakeholders.
In April, Yarden, funeral insurance and under-                                                                  The Group’s management kept the worrying devel-
taking, and Delta Lloyd Group announced a             In the light of economic developments in 2002, inten-     opments on the financial markets under constant
co-operation to offer insurance products              sive attention was paid to cost improvements in the       surveillance. Solvency, in particular, was followed
and services concerning loss of life. Yarden          whole Group. The trend for annually rising costs          closely. At around 177 per cent, the solvency of the
and Delta Lloyd use each other’s knowledge            was halted thanks to a higher premium income and          insurance operations can still be considered good
and experience in the field of funeral, life          by realising lower administration costs. This should      and above the internal requirement of 150 per cent.
and care insurance.                                   be continued in coming years.                             The BIS ratio for banking activities was, at 13.9 per
                                                                                                                cent, far above the legal minimum of 8.0. At the end
                                                      The total gross premium income rose by 5 per cent         of 2002, Standard & Poor’s confirmed the AA rating
                                                      to s 4,341 million. Premium income from life activities   of Delta Lloyd Group.
                                                      of the whole Group grew by 2 per cent to s 2,744
                                                      million, the premium income from general insurance        The negative developments on the stock markets have
                                                      and care developed positively with increases of 8         led, for the second consecutive year, to a drop in
                                                      per cent and 11 per cent respectively.Total revenue       investments and therefore in the individual assets
                                                      fell marginally to s 5.5 billion, due to a 27 per cent    of the Group. Individual assets dropped during the
                                                      drop in investment results to s 1,022 million.            year under review by 27 per cent to around s 1.7
                                                                                                                billion. The Revaluation Reserve was positive at
                                                      The Group revenue consists of: 71 per cent from life      s 90 million.
                                                      insurance, asset management and banking activities
                                                      (2001: 74 per cent); 14 per cent from care (2001: 13
                                                      per cent) and 15 per cent from general insurance
                                                      (2001: 12 per cent).The further expansion of activities
                                                      is continuing. Some 22 per cent (2001: 19 per cent)
                                                      of the total revenue was realised abroad.The Group
                                                      has 6,464 full-time employees (2001: 6,506).The total
                                                      assets under management fell to s 36.3 billion, a drop
                                                      of 18 per cent on the year before.




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                                                                                       the Executive Board’s report

                                                     2002 – a year of extremes




APRIL 2002                                           Outlook 2003                                              AMRO. However, the long-term strategic policy will
Delta Lloyd and PGGM stop Careon Advice              Given the continuing uncertainty in economic devel-       be pursued vigorously. This strategy is based on an
The joint venture between PGGM (pension              opments, international politics and financial markets,    awareness that the extremely high returns we have
fund for health, mental and social care)             it is not possible for Delta Lloyd to make a reliable     had in the past few years should be considered a
and Delta Lloyd Group came to an end on              prediction for its 2003 results.                          coincidence. Delta Lloyd also regards the current
29 April 2002. The joint venture, named              However, the Executive Board does expect cost levels      negative conditions as a temporary phenomenon,
Careon, was to offer financial services to           to fall slightly in 2003 and premium income in Life,      one the Group is able to cope with thanks to a solid
employers and employees in the health                General and Care to develop favourably. The focus         long-term policy. Even after the lower stock exchange
and welfare sector. PGGM and Delta Lloyd             for Life operations will be on pension business. A fur-   prices and sharply reduced returns in the financial
confirm that their strategies on which the           ther increase in premium income is also expected          year 2002, Delta Lloyd Group remains solid and
joint venture was based are in agreement.            in Belgium and Germany.                                   solvent.
However, after a study into the commercial
feasibility, both contracting parties agreed
that the basis was not deep enough to                Consistent strengthening of strategy                      Markets
achieve the intended win-win situation within        The co-operation with ABN AMRO, announced in              The Dutch insurance industry was under pressure
a reasonable period of time.                         November 2002, is a logical step in the Delta Lloyd       from all sides in 2002. Uncertainty was not only caused
                                                     Group strategy. In previous years, a straightforward      by the extraordinarily lower share markets, the
                                                     model was developed for the group for the conduct of      downward economic trend and reduced consumer
                                                     business under the name 7-2-7 Model. This outlines        confidence, but such drastic events as natural disasters
                                                     seven strategic pillars, two strong brands (Delta Lloyd   and (fear of) terrorist attacks, political developments,
                                                     and OHRA) and seven core values. A third brand            more regulations and changes in consumer behaviour
                                                     was added in the year under review (ABN AMRO              adversely affected the market as well.
                                                     Insurance) and the name of the model was conse-
                                                     quently changed to the 7-3-7 Model. The formulated        The Government’s influence on the life business in
                                                     strategic pillars, brands and core values together        particular was significant.The tax reforms introduced
                                                     define the Group’s long-term policy.                      in 2001 reduced the life annuity deduction and the
                                                                                                               mortgage regime was adjusted. The effects were
                                                     By means of the 7-3-7 Model, Delta Lloyd Group is         even stronger as a result of the basic life annuity
                                                     placing emphasis on more distribution channels –          deduction and the limitation of company savings
                                                     multi-channel – and the realisation of further expan-     schemes.
                                                     sion in mainly life insurance and asset management,
                                                     through direct take-overs and joint ventures. The
                                                     objective is to develop into a major financial ser-
                                                     vices provider in the Netherlands, Belgium and Ger-
                                                     many with a wide range of products and services. In
                                                     the past few years, Delta Lloyd Group has worked
                                                     consistently and firmly on strengthening this strat-
                                                     egy. Now that external market developments are
                                                     causing a setback in the short term, the emphasis
                                                     in the coming period will be mainly on consolida-
                                                     tion and integration of the joint venture with ABN




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                                                                                       the Executive Board’s report

                                                     2002 – a year of extremes




MAY 2002                                             Growing consumer protection by the Government is          The Care market has always been dominated by
New campaign OHRA                                    leading to stricter supervision and more excessive        politics, which have been trying for years to control
A new media campaign began in May.                   regulations. One example is the compulsory Financial      the cost of health care and to improve organisation.
The general theme was: Direct Insurance,             Information Leaflet, which took effect on 1 July          The emphasis in 2002 was on decision-making in
Direct Investment, Direct Banking, Direct            2002. The Social Economic Council (SER) in 2002           connection with the basis system. It was decided in
Result.                                              welcomed the Government’s plans to legalise the           May 2002 that a new medical expenses system should
                                                     supervision of financial services providers, with the     be introduced on 1 January 2005, but the decision
JULY 2002                                            Financial Markets Authority being given supervisory       was postponed because of the collapse of the
Banking activities Belgium                           tasks. Although Delta Lloyd supports developments         Government at the end of 2002. As a consequence,
The restructuring of banking activities in           in this area, the side effect of new reporting require-   uncertainty is impeding the Care sector.
Belgium after the acquisition of Bank                ments and a compulsory information supply in-             At the same time, adverse stock exchange conditions
Nagelmackers was concluded on 1 July                 volves higher costs that cannot be compensated by         and stricter regulations also affect the Care sector.
and led to a strong distribution network             a premium expense loading.
throughout the country: more than 150                The consequences for the life operations are drastic:
offices and independent agents offer a               lower margins, pressure on profits and negative growth    Realisation of objectives: cost reduction,
selected range of banking and insurance              in the personal lines market.                             efficiency and service enhancement
products under the name of Delta Lloyd                                                                         Delta Lloyd Group can look back on a positive year
Bank. Private banking and institutional asset        There is also movement in the General Insurance           as far as the realisation of objectives set in 2002 are
management are offered under the name                market. Terrorism and catastrophes in worldwide           concerned – except for the financial results. The
of Bank Nagelmackers 1747.                           commercial markets led to higher claims. The com-         development of profits may have been disappoint-
                                                     bination of the collapse of the share markets and the     ing, due mainly to the poor performance of share
                                                     non-compliance with risk models meant that rein-          markets and associated developments, but other
                                                     surance premiums were much higher in 2002. In             activities of the Group are on schedule.
                                                     the past few years, the individual general insurance
                                                     market has gradually turned into a market based on     An important objective was the reduction of the
                                                     price through standardisation, increase in scale and   Group’s cost level. In order to strengthen Delta Lloyd
                                                     lower expenditure.                                     Group’s competitive position, cost awareness was
                                                                                                            highlighted and costs were reduced in a short period
                                                     There is enormous potential in the income market, of time.
                                                     particularly as a result of the new WAO resolutions,
                                                     which include a significant role for private insurers.
                                                     The role of income insurers is moving from benefit
                                                     authority to mediator and counsellor and from in-
                                                     surance product to the provision of services. In
                                                     all these developments, the basis of Delta Lloyd
                                                     Group is relatively favourable: good solvency, strong
                                                     brands, experience and knowledge, power of scale,
                                                     a great supply of products and several distribution
                                                     channels. However, a sound future requires a low cost
                                                     level. In addition, rapid product development, a high
                                                     level of service and accessible insurance knowledge
                                                     are essential.


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                                                         2002 – a year of extremes




JULY 2002                                                The Group was able in 2002 to reduce recurrent costs    Another objective realised is the accentuation of
Delta Lloyd customers earn A 10,000 for                  excluding commission below last year’s level. An        the sourcing policy, introduced in the Delta Lloyd
Stichting Sterrekind                                     impressive result, which also highlights a changed      Group in June 2002.The aim is to focus more on the
Delta Lloyd conducted a campaign in May                  attitude towards expenditure. However, this is not      essential competencies of the Group as a financial
asking general insurance customers to switch             enough. The emphasis in the next few years will         services provider, reducing costs structurally and
to direct debit of their premiums. For each              be on cost control. For this purpose, several pro-      gaining more flexibility and decisiveness. Outsourcing
customer who did, Delta Lloyd donated one                grammes have been drawn up that should lead to a        may help by placing standardised non-key activities
euro to Stichting Sterrekind, an association             further structural cost reduction. The big challenge    with third parties. In this way, the available means
devoted to improving the lives of chronically ill        is the best possible use of synergy between vari-       may produce more returns, and expertise in non-key
children. A cheque of B 10,000 was presented             ous companies, like the use of the Shared Service       activities may be secured in the longer term. This
to the foundation on 30 July and Delta Lloyd             Centres for the insurance industry.The co-operation     is demonstrated by the outsourcing of back office
Group extended its main sponsorship of the               with Pink Roccade, announced in September 2002,         tasks in the mortgage division to an external company.
organisation for the coming three years.                 for the development of a joint service centre for the   The subsequent freeing up of people in the mortgage
The campaign also produced many new                      general insurance business (SSC) of Delta Lloyd and     division led to a better focus on key tasks, with the
supporters for Sterrekind.                               OHRA is a good example in this respect. The SSC is      same number of employees, more customer focus
                                                         taking over the administrative back office processes    and, eventually, revenue trebled. A first step has also
                                                         from the individual insurances of Delta Lloyd and       been made in outsourcing computer centres and a
                                                         OHRA. The objective is the best possible efficiency     study has been started into the possibility of out-
                                                         in handling standardised administrative processes       sourcing general and technical services.
                                                         in an expertise centre with an attractive scale and
                                                         volume. This will enhance the service level, but at     Cost saving was also emphasised by the creation of a
                                                         the same time, it will reduce costs considerably.       Procurement department. Better contract management
                                                         The centre is set up as an independent company. A       and joint, sharp procurement make cost savings
                                                         conscious choice was made for co-operation with         more likely.
                                                         an ICT management partner that can arrange ICT
                                                         expertise and the associated infrastructure. Other
                                                         insurers may join, at a later stage, by introducing
                                                         their administrative processes for general insurance
                                                         and thus realising economies of scale.

                                                         Enhanced service has been realised by Delta Lloyd
                                                         insurance, through a new distribution policy. A dis-
                                                         tinction has been made between intermediaries, and
                                                         this has enabled the account management to offer
                                                         custom-made service to intermediaries who are im-
                                                         portant to Delta Lloyd.
                                                         OHRA redefined its market position: it wants to sell
                                                         a simple, clear product with a quick service. OHRA
                                                         guarantees its customers’ business will be handled
                                                         very rapidly, as shown in the media campaign ‘OHRA,
                                                         Direct Result’.




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                                                                                       the Executive Board’s report

                                                      2002 – a year of extremes




SEPTEMBER 2002                                       Central focus on customer                               buy products online, rapid information supply and
Delta Lloyd introduces Verzekerd Beleggen            In the year under review, Delta Lloyd Group put         product comparison, direct contact with existing and
In a reaction to the uncertain stock exchange        increasing emphasis on one of its most important        new customers: all these elements contribute to the
conditions, Delta Lloyd introduced a new             core values: central focus must be on the customer.     best possible customer satisfaction.
category of investment products under the            The customer’s interest is the first priority in the
name of Verzekerd Beleggen. The starting             conduct of business; the customers’ wishes define       Delta Lloyd developed several pioneering initiatives
point of this new product is a high degree           the Group’s attitude and behaviour.                     in the field of Care in 2002. This concerns service
of capital protection through a guaranteed                                                                   and facilities, rather than new products. For instance,
minimum return, while members still benefit          Thanks to the multi-channel approach, Delta Lloyd both Delta Lloyd Care and OHRA guaranteed pa-
from rising European share markets.                  Group offers a wide range of products through the tients operations within 14 days or, in the case of
                                                     distribution channel chosen by the individual and urgent surgical treatment, even offering a three-day
OCTOBER 2002                                         commercial customers. Delta Lloyd operates inten- guarantee. In practice, this means looking for a solution
Delta Lloyd wins Diversity Award                     sively and exclusively with independent intermedi- for customers in cities and towns other than their
Delta Lloyd received the Diversity Award             aries and OHRA concentrates directly on individual place of residence – in the Netherlands, abroad or in
on 31 October from the Confederation of              and commercial customers. As a result of the joint private hospitals. Another example is looking at the
Netherlands Industries (VNO-NCW). The prize          venture with ABN AMRO, the customer now has a care that customers really need, such as offering the
is given to support companies and stimulate          choice of three channels: through intermediaries, possibility to opt for full dental cover.
diversity policies.                                  through the banking channel or directly.
                                                                                                             Protecting the customer’s position is also an important
                                                     The new distribution policy of Delta Lloyd Insurance, issue. The principle of ‘know your customer’ means
                                                     introduced in 2002 and aimed at creating an advan- that more attention is paid to the customer so that
                                                     tageous relationship with intermediaries, has greater service can be concentrated on the customer’s in-
                                                     added value for customers, by better matching the dividual situation. In the banking division, investment
                                                     marketing and sales organisations to the different in- relations were asked to indicate the best risk profile
                                                     termediaries and their clients.The service structure of customers and which service would best fit clients.
                                                     of the back offices also better meets the specific Stricter codes of conduct, a more extensive obliga-
                                                     needs of intermediaries. Better service to intermedi- tion to provide information in quotations or value
                                                     aries allows them to service their customers better and surrender details, and quality requirements of
                                                     as well.                                                customer information by intermediaries, are other
                                                                                                             forms of special attention to consumers.
                                                     Delta Lloyd Group plays a pioneering role in the field
                                                     of chain integration in the industry. Delta Lloyd wants
                                                     to realise an efficient handling and relief of paper-
                                                     work in good consultation with fellow insurers
                                                     and intermediaries. One way to do this is through
                                                     Internet activities. The Delta Lloyd Digital Domain
                                                     (DDD) was given a significant impetus in this
                                                     respect. In such Internet developments, the enhance-
                                                     ment of service is important.The speed and control-
                                                     lability of transactions, the introduction of direct
                                                     electronic reimbursement traffic, the possibility to




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                                                                                       the Executive Board’s report

                                                    2002 – a year of extremes




NOVEMBER 2002                                       Continuity and reliability for all stakeholders             Social involvement
New Head Office in Mondriaan Tower                  The year 2002 was also characterised by what is             The actual interpretation of our core values is not
Job Cohen, mayor of Amsterdam, officially           known as a “crisis in capitalism”. The scandals sur-        only evident in our business activities, but also in
opened the new head office of Delta Lloyd           rounding such companies as Enron, Worldcom and              our personnel policy. For instance, it is part of the
Group on 5 November.                                Vivendi Universal painfully show the consequences           performance appraisal policy, and the active diversity
                                                    of an exaggerated focus on short-term results, a lack       policy that Delta Lloyd Group has pursued for some
NOVEMBER 2002                                       of values and of ignoring the interests of stakehold-       years now.The principle of this policy is that all em-
Delta Lloyd and ABN AMRO together in                ers. For Delta Lloyd Group these developments once          ployees, male or female, irrespective of background,
bancassurance                                       again confirm the importance of offering continuity         religion or origin should genuinely work together,
Delta Lloyd Group and the Dutch business            and reliability to all our stakeholders. Delta Lloyd        eventually leading to a better operating result.
unit of ABN AMRO signed a letter of Intent          Group considers the Dutch construction of ‘structure        Developments in the work force show that this
on 27 November for a unique co-operation            companies’ a significant added value.This legal con-        approach is successful. Not only is this clear from
in the field of bancassurance. Delta Lloyd          struction offers the best guarantee that all groups         figures: a rise of 0 per cent to 11 per cent female
takes a 51 per cent stake in and will have          concerned – and not only those representing the             directors in two years, but also in qualitative im-
the management control of a joint venture           shareholders’ interests – exert influence on the            provements: in raising consciousness, recognition
in which the insurance business of ABN              enterprise.                                                 and acknowledgement. Delta Lloyd Group occupies
AMRO is to be placed. The co-operation                                                                          a special position, which became clear when the
combines the distributive power of the Dutch        Delta Lloyd Group believes in the importance of             Group received the Diversity Award from the Con-
network of ABN AMRO and the insurance               the company’s solvency being maintained and im-             federation of Dutch Industries (VNO/NCW). In June
expertise of Delta Lloyd.                           proved and, therefore, in financial solidity being guar-    2002, Delta Lloyd was also named the most Female
                                                    anteed to customers. The awareness of our respon-           Friendly employer in the insurance industry.
                                                    sibility as a financial services provider illustrated
                                                    that the corporate values defined in 2000 are really        The core values are also becoming more visible in the
                                                    embedded in our organisation. These values show             policy on sponsoring and donations, as more and
                                                    what the company stands for, they give direction to         more is being invested in social projects.This is one
                                                    the corporate policy and they define the corporate          of the reasons why Delta Lloyd Group decided not
                                                    culture and identity, both internally and externally.       to renew the sponsor agreement with the Royal Dutch
                                                    Our policy is always checked against these values           Athletics Union when it ran out on 31 December
                                                    and any dilemmas are a subject of discussion at             2002. Instead, the Group has opted to give financial
                                                    all levels. In 2003, the core values will be the basis of   aid to groups that link up better with Delta Lloyd
                                                    the formal performance appraisal of all individual          Group’s social involvement. This includes Sterre-
                                                    employees.                                                  kind Foundation, Stichting Bio-Kinderrevalidatie, Valid
                                                                                                                Express, Simavi and R&B.
                                                    Integrity and transparency in all areas, towards custom-
                                                    ers, employees and society at large, is an important
                                                    basic principle for Delta Lloyd. Delta Lloyd has wel-
                                                    comed initiatives such as GIDI, a code of conduct
                                                    for information supplied by intermediaries. Delta
                                                    Lloyd Group also co-operated enthusiastically with
                                                    the Association of Insurers in the Netherlands on the
                                                    creation of the code of conduct for the insurance
                                                    industry.


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                           corporate governance and
                               risk management
     Corporate Governance



     Corporate Governance is the appropriate management       The Executive Board consults with the top manage-
     of an enterprise, adequate supervision and transparent   ment and the Central Works Council on all major
     account to those involved in that enterprise.            decisions.

     Delta Lloyd NV, being a structure company, has its       Tactical and operational planning (three years rolling)
     own structure for Corporate Governance under which       and realisation of the short-term corporate objectives
     shareholders transfer a substantial amount of power      are the prime responsibilities of the division manage-
     to an independent Supervisory Board.The relationship     ment and supporting divisions.The Executive Board
     between the board and shareholders is close and          has a directive responsibility through a fixed steering
     positive, strengthening the position of Delta Lloyd      model, formulation of performance criteria and ap-
     Group as a major division of the Aviva Group.            proval of corporate plans.

     The Supervisory Board therefore has a major respon-      The Executive Board monitors the progress of the
     sibility in the supervision of the management by         realisation of plans. To this effect, the Executive
     the Executive Board and the management of the            Board is supported by Group Finance & Control for
     company. With sufficient attention, reasonable care      the assessment of the planning and the reporting
     and sound judgement, the Supervisory Board con-          process. Group Audit & Consultancy provides an
     tributes to the healthy operations of Delta Lloyd,       unbiased assessment of operating processes, systems
     including its foreign entities.                          and change projects. At the same time, central
                                                              bodies co-ordinate ICT infrastructure and services,
     The Supervisory Board acts in accordance with the        HRM, communication, facilities and procurement,
     recommendations of the Peters Committee (1997)           security, compliance and fraud control.
     and in line with recommendations of such international
     committees as Turnbull. Developments from various        Naturally, external supervisors, consultation in the
     supervisory bodies like the Pensioen- en Verzeker-       insurance industry, stakeholders and our customers
     ingskamer, Dutch Central Bank, AFM, SUO-WTZ,             provide a powerful, supplementary contribution
     CTZ, CBP in the Netherlands or the FSA (Financial        for the accountability and successful management
     Services Authority) abroad, are monitored closely and    of the Group, for the supervision thereof and the
     lead to adjustments if necessary.                        account given thereof.

     The Audit Committee of the Supervisory Board meets       The internal structure of corporate governance was
     on a regular basis to extensively review all kinds of    further strengthened in 2002. Compliance officers
     aspects of the operations. Representatives of the Ex-    were appointed for each division, who contribute
     ecutive Board, internal and external audit, finance      to the timely reaction to and execution of legislation
     and control are invited for those meetings to report     and regulations (codes of conduct). They have a
     audit plans, findings and control issues.                significant degree of independence and objectivity;
                                                              they may act directly and independently with the
     The final responsibility for the internal management     regulators.
     systems of Delta Lloyd NV lies with the Executive        Other issues handled in 2002 include the effects of
     Board.This particularly concerns the strategy and the    the introduction of the new Data Protection Act and
     long-term planning.                                      the appointment of a Data Protection Officer.




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                             corporate governance and risk management

     Risk management



     Cautious Risk Management is being given much more           Expert Asset Liability Management on the basis of
     attention in the organisation. For financial institutions   scenario analysis guarantees an accountable course
     like Delta Lloyd Group risk management is core              for our customers and the Group.
     business, as it guarantees a long-term compliance           Delta Lloyd Executive Board and management are
     with liabilities towards stakeholders. Through its          continuously aware of the importance of a clear
     products, Delta Lloyd Group covers risks for its            strategy and appropriate policy and plans to meet
     relations.                                                  the business objectives.
                                                                 Delta Lloyd Group is confident that the present 7-3-7
     Delta Lloyd Group does everything it can to keep            formula will lead to a successful future: seven strategic
     the subject of risk management at the forefront of          pillars, three strong brands and seven core values.
     all divisions. An important element for risk manage-
     ment in the Delta Lloyd Group is the risk & control
     self assessment by the Executive Board, which pro-          Future
     vides topical risk profiles each quarter. Such profiles     Divisions in the Delta Lloyd group act as independently
     illustrate the situation on the basis of an internal        as possible from a strategic framework with clear
     method, divided into 21 risk groups.                        objectives.At group level, small top-quality executive
                                                                 organs supply an added value through an assessment
     The risk profile of the group creates a summary of the      of the corporate processes and advice about general
     inherent risk of the underlying strategic, tactical and     synergies and co-operation.
     operational risks and of the remaining risk, when man-
     agement features are taken into account, of mention         Regulators complete the corporate governance frame-
     being made of issues and action plans, if necessary.        work by visiting Delta Lloyd Group and by reviewing
     Every six months all Executive Board members state          or auditing its activities.They make recommendations
     that the risk map covers all relevant risks and which       or issue directives.
     aspects require additional reporting.The risk map and       Delta Lloyd Group acknowledges the need for an
     Executive Board statements are reported to and dis-         effective corporate governance, but is concerned by
     cussed with the Audit Committee.                            the threat of too much bureaucracy.
     The company also uses other risk management fea-            Transparency and supervision are necessary, but too
     tures, such as business balanced score cards, to ensure     many details and too many double or redouble mea-
     its policies are working. The various divisions also        sures are counter productive. Modernisation of the
     carry out risk assessments for the corporate plans.         supervision with enhanced responsibility for the
     During 2002 specific attention was paid to solvency         enterprises are considered positive developments
     management and the yield development of certain             by the Group, offering opportunities for an efficient
     products, in particular products with a guaranteed          interpretation.
     return for customers and immediate life annuities.
     For the banking division the new Regeling Organi-
                                                                 More rules and regulations are resulting in increased
     satie en Beheersing (ROB) was implemented.
                                                                 expenditure which cannot completely be passed
     Delta Lloyd has been able to retain a proper solvency
                                                                 on to the price, certainly not because the premium
     level, despite adverse economic conditions and falling
                                                                 has already been received and such costs had not
     share prices.
                                                                 been provided for.




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                             corporate governance and risk management

     Risk management




     Many new developments will ask for our attention           tion of departments and systems, acceleration and
     in 2003 and the following years.                           improvement of reporting, transparency and new
     Firstly, further modernisation of supervision. Regula-     initiatives in the field of e-business and care, are just
     tors will pay more attention to the internal control       some of the Group’s many ongoing developments.
     of the organisation, provided that there is enough
     transparency and insightful responsibility. From
     the Basel negotiations, a course has been set for a
     model-based variable Risk Based Capital allocation
     that in the future should lead to differentiation in the
     solvency demands per business.
     Secondly, the Group will focus on a tightening of de-
     mands concerning corporate governance. There is
     still no sign of a single approach to this issue within
     the European Union and other parts of the world,
     because of differences in culture, laws and political
     ideology. This means that internationally operating
     companies like Delta Lloyd Group are faced with
     conflicting demands or duplication in laws.
     An evaluation by the Dutch Foundation for Corporate
     Governance (NSCG) shows that,in general,not enough
     has happened in the self-regulation of company man-
     agement and there is not sufficient transparency.

     Delta Lloyd Group has adopted the recommendations
     made by the Peters Committee in 1997 and believes
     that good corporate governance is in the interest of
     all stakeholders. From Delta Lloyd Group’s point of
     view, self-regulation is preferable to legislation.
     As a banking and insurance company, Delta Lloyd
     Group falls under the new guidelines for additional
     supervision of financial conglomerates. The conse-
     quences of this will become clear in 2003.
     Thanks to its solid corporate governance structure
     and existing corporate governance structure, and
     the current control measures, Delta Lloyd Group
     can successfully and effectively react to changing
     market conditions. Recent mergers, take-overs and
     forms of co-operation strengthen this.
     Business Process Redesign, synergy though integra-




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                                                                              Delta Lloyd and its employees
                                                             An entrepreneurial work atmosphere



                                      2002            2001   To realise its ambitions, Delta Lloyd needs qualified     involvement and responsibility, team spirit, flexibility
                                                             and highly motivated employees. The Group offers          and enterprise require a coaching style of leadership
Number of staff on a full-                                   an inspiring work environment in which employees          that gives employees room for development, based
time basis at 31 December                                    have an opportunity to grow and move up.The aim           on a large degree of participation and decision-making
Delta Lloyd Insurance        2,220           2,307           is to realise an entrepreneurial work atmosphere in       by employees, and independent teams. Management
OHRA Insurance                988             966            which employees are motivated to react rapidly and        is supported by means of training and courses.
Delta Lloyd Banking          1,223           1,311           skilfully on developments in the market, to present
Delta Lloyd Deutschland       924             986            new ideas, to accept responsibility and to feel and       • Diversity policy
Other                        1,109            936            show involvement. Management plays a vital role in        Delta Lloyd Group recognises the importance of
                                     6,464           6,506   this respect, by setting an example and by creating       diversity in teams, particularly the diversity of men
                                                             a culture of inspiring leadership.                        and women. The diversity policy developed in the
                                                                                                                       past few years is aimed at getting more women
                                                                                                                       moving up to higher management positions, so that
                                                             Developments in 2002                                      men and women work together in a genuine way
                                                                                                                       and from various perceptions and qualities. Diversity
                                                             • Labour market approach                                  is not only supported as corporate policy, it is also
                                                             By directly approaching target groups in the labour       supported by behaviour. Differences and similarities
                                                             market we studied how our position as a preferred         between men and women should become the subject
                                                             employer could be strengthened. Benchmarking              of discussion and are the key to change. One example
                                                             in the insurance industry is one way. Delta Lloyd         is a management training programme called ‘Kans
                                                             Group positioned itself as an employer with devel-        op Balans’, in which the diversity in management
                                                             opment potential, also internationally.                   styles focuses on the different styles between men
                                                                                                                       and women. The approach is successful: the number
                                                             • Development policy                                      of women in top positions is increasing annually.
                                                             An individual contribution to career development is       What is more, Delta Lloyd Group’s diversity policy
                                                             encouraged. At the same time, a structured policy is      was awarded the VNO-NCW Diversity Award by
                                                             pursued in the Dutch divisions for the development        the Confederation of Dutch Industries in October
                                                             of employees who wish to move up to become team           2002.
                                                             leaders and members of the management. Specific
                                                             courses exist for these groups.

                                                             • Harmonisation of terms of employment
                                                             In a new Collective Labour Agreement applying to
                                                             the whole Group, employees will have a transpar-
                                                             ent package of terms of employment. In addition
                                                             to group schemes, there is room for individual choices.

                                                             • Leadership style and subject of the job
                                                             An inspiring working environment is defined mainly
                                                             by the contents of the job: a function should offer
                                                             variation and challenge. Such corporate values as




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                            sponsoring and donations
     Investment in society



     The donation and sponsoring policy of Delta                Culture in Amsterdam                                      Rhythm & Blues
     Lloyd Group is primarily aimed at socially oriented        Delta Lloyd Group is based in Amsterdam.The company       The Amsterdam police has a project in Amsterdam West
     projects which link up well with the social involve-       supports several cultural and social organisations in     called Rhythm & Blues. Supervised by the police, the
     ment of the Group. A total amount of s 2.5 million         the Amsterdam region, including Artis (zoo), Carré        project offers criminal youngsters new chances.
     was spent on sponsoring and donations. In 2002,            (theatre), Municipal Museum, Maritime museum, the         Delta Lloyd will sponsor this project for the next
     employees of Delta Lloyd Group could for the first         Amsterdam Historical Museum and the Dutch Phil-           three years.
     time recommend making a donation to organisa-              harmonic Orchestra.
     tions which they support (privately). 80 requests
     were honoured in 2002. After six years of spon-            Valid Express
     sorship, Delta Lloyd terminated its contract with          The courier service Valid Express only employs invalid
     the Dutch Athletics Union on 31 December 2002.             and handicapped people. By supporting and employ-
     This concerned both the sponsorship of the Royal           ing Valid Express, Delta Lloyd Group contributes to
     Dutch Athletics Union (KNAU) and various other             creating equal opportunities and financial indepen-
     sporting activities such as the Amsterdam Marathon.        dence for the disabled.
     The main sponsorship of the HISWA and the Royal
     Belgian Lawn Tennis Bond was renewed in 2002.              Simavi
                                                                Simavi is an organisation for developing aid.With the
                                                                help of Delta Lloyd Group, Simavi has been able to
     Some major donations by Delta Lloyd Group                  realise several water projects in countries like India.
     include:                                                   The organisation aims to improve water supply and
                                                                sanitary facilities, pushing back blindness by orga-
     Sterrekind                                                 nising basic medical provisions and medical education
     The Sterrekind foundation is concerned with the            on the spot.
     welfare of children who spend long periods in health
     care institutions. Sterrekind developed Sterrewereld       NEBAS
     for them; an exciting virtual world in which they          Delta Lloyd Group supports NEBAS, the Dutch Asso-
     can do things that they cannot do in normal life be-       ciation for Adjusted Sports. NEBAS provides equipment
     cause of their illness: play, learn, communicate with      and tries to develop adjusted sports rules, thus making
     family, friends and other sick children. Sterrekind        sports accessible for the handicapped.
     wants to improve their quality of life.To achieve this,
     Sterrekind has set up a network with many health           Gelders Orkest
     care institutions.                                         By sponsoring this orchestra, established in 1899,
                                                                Delta Lloyd Group contributes to many outstanding
     Bio Convalescence                                          and internationally appreciated concerts.
     Bio Convalescence for Children focuses on guidance,
     care, housing, education and convalescence of
     handicapped children.The association is located in a
     large wooded area near Arnhem, the city where OHRA
     is based. In addition to financial aid, hundreds of
     OHRA employees assist with maintenance and re-
     construction activities on special ‘OHRA Let’s Go’ days.




BACK TO CONTENTS                                  BACK     27      FORWARD
                                                                                divisions
Delta Lloyd Insurance



Core activities for Delta Lloyd include life, asset manage-                             Delta Lloyd Insurance is the largest division in the    Delta Lloyd Life and Pensions
ment and banking services. General insurance and care                                   Group. It became clear in 2002 that a structural cost   The major developments in Life operations were
are also core activities. In addition to these, the division                            reduction in this division is a condition for profit-   improved service and cost reduction. Great steps
includes Praevenio Technische Verzekeringen and Lancyr,                                 able growth. Stability is an essential element in       were made in processes, systems and the back office
an administration and marketing format for intermediaries                               the insurance division of Delta Lloyd. The market       by, for instance, changing over to standardised pro-
on a franchise basis. Characteristic for Delta Lloyd is the                             showed radical changes in direction for taxation and    ducts and ICT platforms. Existing products were
close co-operation with independent professional inter-                                 stock exchange prices, while regulations were made      scrutinised. New, competitive products were marketed,
mediaries. The basis of product innovation is individual                                stricter. Combined with a diminishing consumer          such as a new universal Life product.
freedom and flexibility. Through this, Delta Lloyd reacts                               confidence, the insurance market is now in unsettled
to social developments and the ever changing needs of                                   times in which profitability can only be maintained     The emphasis of Life business remains on pensions,
individual and commercial customers.                                                    through efficiency improvement. Now that invest-        both individual and group. More than half of our
                                                                                        ments do not meet the required returns, there is        revenue is obtained from this market. This segment
                                                                                        even more emphasis on the existing course of cost       is likely to offer both short-term and long-term growth
In millions of euros                      2002                2001
                                                                                        reduction. In the coming year the division will also    opportunities. Consumers are increasingly aware of
- Gross premium income       2,557.0             2,602.9                                try to achieve a top position in the market for large   the pension gap issue, and they use independent in-
- Investment income           951.3              1,090.0                                commercial business and in the market for small         termediaries to find information about solving their
Revenue                                3,508.3             3,692.9                      and medium-sized business. Spearheads include           pension deficit. This expertise is also important for
Result (before taxation)                148.0               249.2                       the realisation of more than average growth in the      consumers who wish to invest benefits paid from life
Shareholders’ funds                    1,378.1             1,801.1                      market for asset accumulation and income protec-        annuity policies.
                                                                                        tion, achieving a structurally profitable position in
Number of staff on a full-                                                              the general insurance market and finding the best       In the business market, Delta Lloyd Group is an
time basis at 31 December               2,220               2,307                       possible strategy for distribution.                     important player in managing pensions for companies
                                                                                                                                                and institutions. With interest in specialist knowledge
Gross premium income Life              1,545.1             1,649.9                                                                              increasing in the market, Delta Lloyd, as a strong
Gross premium income                                                                                                                            player, identifies good opportunities for the future
General Insurance                        636.1               590.9                                                                              here.
Gross premium income Care                375.8               362.1



The results of Delta Lloyd Insurance were also affected by
the poor economic conditions. Total gross premium income
decreased by 2% in 2002, to B 2,557 million. This decline
was due mainly to lower revenues of 6% for Delta Lloyd
Life, the main reason being the cancellation of a large pension
contract. Gross premium income for general insurances
and care increased by 8 and 4% respectively.
Pre-tax results for Delta Lloyd Insurance fell by 41% to B 148
million in 2002. Delta Lloyd Care and General Insurance
ended the year positively. The results for General Insurance
business were affected negatively by a major storm in the
autumn with a disproportionate claims experience.




                                                             BACK TO CONTENTS   BACK   28   FORWARD
                                              divisions

Delta Lloyd Insurance




                                                   Delta Lloyd General Insurance (and Income)                Delta Lloyd Care
                                                   The strategy of General Insurance operations has          Delta Lloyd Care has focused mainly on the market
                                                   continually been focused on services to the commercial    for employers since early 2002, as the competitive
                                                   and personal lines market, although both markets          strength is large in this segment. In addition to care
                                                   are behaving increasingly differently. For example,       insurance, a wide-cover combination package is
                                                   the individual market is becoming more transparent        offered including income and pension insurances.
                                                   as consumers and companies can easily obtain infor-       As the general tendency towards collectivisation
                                                   mation from the Internet. Price becomes an impor-         continues, the strategy appears to be successful, the
                                                   tant difference.That is why cost control is a decisive    results were again positive.The cost level increased
                                                   element here too. Therefore, work done – together         only marginally, due partly to Activity Based Costing,
                                                   with OHRA – in establishing a Shared Service Centre       a new method of cost allocation. Care management
                                                   is important for the best possible processes and a much   was strengthened in the year under review, so that
                                                   better service level.                                     unexpected political developments could be better
                                                                                                             anticipated. Better care management results in bet-
                                                   The commercial market is much more sensitive to ad-       ter service. Hundreds of waiting list problems were
                                                   vice. Here, the division wants to make itself known       successfully solved.
                                                   as an income insurer. A reintegration team was set
                                                   up in 2002 to extensively review the overall product      Much emphasis was also on the improvement of our
                                                   proposition.                                              image; in this context we held a meeting with a great
                                                                                                             number of care suppliers.This successful discussion
                                                                                                             format will be continued in 2003.




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                                                                            divisions

  OHRA Insurance



OHRA has always been a direct writer and is as such the                          A major reorganisation was concluded in the year         OHRA Life & Pensions
direct division of Delta Lloyd Group. The division consists                      under review to prepare OHRA for a successful future.    Four new products were added to the range of prod-
of OHRA Life, OHRA General Insurance, OHRA Care, OHRA                            In future, the Internet will play an important role as   ucts in the course of 2002: OHRA Stallingfonds, OHRA
Income and Absence and Nationaal Spaarfonds. OHRA’s                              a distribution channel.                                  Contractverzekering, OHRA Goudenhanddruk-
strength is reacting to the consumers’ demand for rapid                          The emphasis in 2002 was therefore on new plans          verzekering and OHRA Internet Pensioen. Within
service, both in respect of underwriting and use of PC and                       and projects, communicated to customers through          the framework of the latter product, the first four
the Internet. Most insurance and financial services can be                       the new campaign ‘OHRA Direct Result’.                   group pension contracts were signed in the year
closed directly, 24 hours a day.                                                                                                          under review.
                                                                                                                                          In the current financial year, OHRA Life & Pensions
                                                                                                                                          will continue to focus mainly on customers with
In millions of euros                  2002             2001
                                                                                                                                          severance pay, life annuity benefits and released
- Gross premium income       752.0           747.4                                                                                        company savings scheme money. At the same time,
- Investment income          -23.8            -9.8                                                                                        OHRA Internet Pension is expected to become a
Revenue                              728.2           737.6                                                                                profitable business.
         (before taxation)
Result                                22.2            52.9
Shareholders’ funds                  223.5           193.6                                                                                The successful product introductions are in contrast
                                                                                                                                          to the hesitant market situation as a result of un-
Number of staff on a full-                                                                                                                certainty about life annuity deductions and doubt
time basis at 31 December             988              966                                                                                on the stock markets. Consequently, consumers and
                                                                                                                                          companies are postponing important financial
                                                                                                                                          decisions. Despite this, OHRA Life & Pensions
Gross premium income Life            245.9           245.6
                                                                                                                                          succeeded in realising the targets for revenue and
Gross premium income
                                                                                                                                          cost reduction. Both the conversion of an old life
General Insurance                    107.9           107.4
                                                                                                                                          administration system and the transfer of funeral
Gross premium income Care            398.2           394.4
                                                                                                                                          insurance to subsidiary Nationaal Spaarfonds NSF
                                                                                                                                          were successful.
OHRA realised pre-tax results of B 22.2 million in 2002,
a decrease of 58% compared with 2001. Total premium
income rose marginally by 1% to B 752 million.




                                                      BACK TO CONTENTS   BACK   30   FORWARD
                                       divisions

OHRA Insurance




                                            OHRA General Insurance                                 OHRA Care and Income
                                            A growing number of consumers and companies            In a generally negative market, the portfolio of OHRA
                                            are comparing insurance prices through the Internet.   Care increased by more than one per cent for the
                                            As a result, sharp prices and Internet presence are    first time in four years. This was realised partly by a
                                            becoming very important. In General Insurance          limited rate increase. At the same time, OHRA was
                                            operations, price proposition improvements were        successful in further reducing absolute and relative
                                            tackled on two fronts. A General Insurance Service     expenses, and efficiency improved as a result of the
                                            Centre was set up together with Delta Lloyd; it has    business process redesign. Consequently, the result
                                            had a positive effect on processes and the service     was positive.
                                            level has been strongly enhanced. At the same time,
                                            all products were further standardised and adapted     Remarkably, about 30 per cent of new customers are
                                            to automated processing, so that a sharp decrease in   reporting through the Internet. In 2002, OHRA Care
                                            expenses was possible.                                 changed its role from that of care insurer to care
                                                                                                   services provider. Information, preventive services
                                                                                                   and waiting list reduction are services demanded
                                                                                                   by customers. This and a much better service had a
                                                                                                   positive effect on customer retention.
                                                                                                   Thanks to further product development (PHI and
                                                                                                   Zorganize) and process improvements, sales targets
                                                                                                   were amply achieved. Realised sales were even four
                                                                                                   times higher.

                                                                                                   The role of income insurer has moved away from
                                                                                                   that of benefit-paying institution to mediator and
                                                                                                   counsellor, while the insurance product contains
                                                                                                   more service. Arbo (Occupational Health & Safety)
                                                                                                   services no longer present themselves as specialists for
                                                                                                   short-term absence and prevention, but as counsellors
                                                                                                   of long-term absence and reintegration. Income
                                                                                                   business therefore will put more emphasis on co-
                                                                                                   operation with Arbo services.




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                                                                                  divisions

Delta Lloyd Asset Management and
Delta Lloyd Property


Delta Lloyd Asset Management, based in Amsterdam and                                   Asset Management                                          Delta Lloyd Asset Management has a lot to offer in-
Arnhem, is active in all investment categories, except property.                       Prominent financial institutions more often include       vestors in the coming period of uncertainty, mainly
The activities of Delta Lloyd Asset Management cover the                               the private investment funds of Asset Management          by capitalising on increase in demand for spread in
investments of Delta Lloyd, the asset management for the                               in their portfolios. This results in new money flow-      investment styles. A value focused investment style
benefit of institutional (pension) relations and the management                        ing in, on balance. This concerned both the insti-        is used in the Delta Lloyd funds. The style bench-
of all Delta Lloyd and OHRA Investment funds.                                          tutional and listed Delta Lloyd funds; OHRA funds         mark is orientated in the Delta Lloyd Investment
                                                                                       were facing a slight outflow of money.                    Fund. The global sector style is adopted by actively
Delta Lloyd Property invests in real estate as security for                                                                                      focusing on the most positive sectors within the
long-term insurance liabilities. The property portfolio currently                      Bond and money market funds achieved positive re-         portfolio. The OHRA funds focus on themes – and
has a market value of B 1.36 billion with a mix of approximately                       turns in 2002.The Delta Lloyd Rente Fonds (interest       the most promising companies in them – that can
50 per cent houses, 38 per cent offices and 12 per cent                                fund), in particular, did well with a return of +11 per   realise an above average growth in future.
shops. Delta Lloyd Property takes care of the asset manage-                            cent. In line with developments on stock markets al-
ment of the portfolio.                                                                 most all share funds of Delta Lloyd, OHRA, the Delta
The management of property is outsourced to property                                   Lloyd Mix Fonds and OHRA Totaal Fonds had nega-
management organisations. Delta Lloyd Property works                                   tive returns in 2002.The funds gave a mixed picture
together with other such parties in the market for the                                 as far as the benchmark was concerned. Delta Lloyd
acquisition of development projects as municipalities, housing                         Group used the benchmark only as an accepted
corporations and property developers.                                                  reference point, and did not concentrate its invest-
                                                                                       ment policy on it. Delta Lloyd Group believes that
Partly because prominent financial institutions include                                active investment politics in the long term offer
more often the private investment funds of Asset Manage-                               higher returns than following a benchmark.
ment in their portfolios, new money in the Delta Lloyd and
OHRA funds amounted to B 502 million.                                                  A good spread of risks over the various investment
The return on investments fell by 29% to B 898 million in                              categories was decisive for realised returns in this
2002. Total assets under management are currently B 36.3                               tough bear market. Bond investments, in particular,
billion (including Property of B 1.9 billion).                                         could still benefit from interest rate decreases by
                                                                                       central banks.These measures also affected the value
                                                                                       of property investments.
Key figures see next page.
                                                                                       Delta Lloyd Verzekerd Beleggen was introduced in
                                                                                       October 2002. It includes three new guarantee funds
                                                                                       offering investors a deposit guarantee or a guaranteed
                                                                                       minimum return.The maximum return is dependent
                                                                                       on developments on the stock exchanges. Another
                                                                                       important development is the agreement with
                                                                                       ABN AMRO on investment products of Delta Lloyd
                                                                                       Group that are supplementary to the ABN AMRO
                                                                                       range of products for private customers.




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                                                                                       divisions

Delta Lloyd Asset Management
and Delta Lloyd Property



In millions of euros                        2002                  2001                      Property
Investment income
                                                                                            Market conditions deteriorated in the course of
- Asset management             898.2                1,272.8
                                                                                            2002, mainly in the office market. The recovery, not
- Property                     123.3                 126.8
                                                                                            expected before 2005, will be caused more by a
Total                                    1,021.5               1,399.6
                                                                                            restructuring of supply than an increase in demand.
                                                                                            The market for shops also shows a change, although
Assets under management
                                                                                            the outlook for exclusive sites in city centres remains
Asset management
                                                                                            favourable. The residential portfolio developed well
- The Netherlands            28,541.2              36,426.7
                                                                                            in the year under review and vacancy was rare.
- Abroad                      5,936.9               6,036.8
Property
                                        34,478.1              42,463.5                      Regulations and market developments are still an
- The Netherlands             1,456.2               1,364.6
                                                                                            impediment for newly developed property in the
- Abroad                       403.4                 355.8
                                                                                            Netherlands. The focus in the coming year will
                                         1,859.6               1,720.4
                                                                                            therefore be on the existing portfolio, and on an
Total at 31 December                    36,337.7              44,183.9
                                                                                            increase in the real quality of our property portfolio.
                                                                                            This approach is expected to produce about the
Number of staff on a full-
                                                                                            same direct result as in 2002.
time basis at 31 December
                                                                                            Delta Lloyd Property succeeded in realising all ob-
- Asset management                83                    61
                                                                                            jectives in the field of investments and return. Some
- Property                        36                    37
                                                                                            new projects were added to the portfolio, like the
Total                                       119                    98
                                                                                            Mondriaan Tower in Amsterdam, which has been
                                                                                            completely let, and a stake in Woningfonds Vesteda.
                                                                                            The portfolio increased by six per cent as a result.
                                                                                            Vacancy remained at an acceptable level of two per
                                                                                            cent.This rate is expected to rise in 2003, but it will
                                                                                            remain well below the Dutch average.




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                                                                                divisions

Delta Lloyd Banking Division



The Delta Lloyd Banking Division includes all banking                                A major theme for the Banking Division was the            The increasingly strong position in the mortgage
and mortgage activities of Delta Lloyd Group in the Benelux.                         development of a strategic plan with a clear focus        market in the Netherlands was rewarded with a 12
The division operates through Delta Lloyd Bank Belgium                               on target groups and the organisational structure.        per cent increase in the number of new mortgages
(retail bank for individual customers, self-employed and                             A radical restructuring of the division in both the       to s 1.4 billion. Thanks to this, the total portfolio
director/shareholders), Bank Nagelmackers 1747 (with                                 Netherlands and Belgium was part of this plan.            managed rose 17 per cent to s 5.7 billion. In Belgium,
focus on wealthy individual customers, fund and institu-                             On July 1 the restructuring of the Belgian organisation   it was easy to see how successful life products can
tional investments), Delta Lloyd Securities (stock broking)                          was successfully completed, including the integration     be sold through the banking network: the increase
and Delta Lloyd Bank Nederland (savings, credit and in-                              of Bank Nagelmackers 1747. Since then, more than          here was 205 per cent.
vestment products for individual clients, via independent                            100 bank offices and more than 50 independent
intermediaries). Individual asset management is offered                              agents are operating under the Delta Lloyd Bank,          The reputable Belgian magazine Financieel Econo-
to wealthy individuals under the label Private Banking.                              with a selected banking and insurance package for         mische Tijd gave Bank Nagelmackers 1747 an hon-
OHRA Bank renders direct services with flexible banking                              the individual customer. Around five private banking      ourable mention for the second time as having been
products.                                                                            offices and institutional asset managers were set up      the best fund manager in 2002.
                                                                                     under the name Bank Nagelmackers 1747.
In millions of euros                    2002              2001
                                                                                     The Dutch banking activities have been reorganised,
- Interest                   227.1             147.7                                 creating a more focused organisation with lower
- Commission                  46.3              30.8                                 costs.The legal merger of OHRA Bank and Delta Lloyd
- Other income                20.5              26.3                                 Bank has created a strong banking retail organisation
Revenue                               293.9              204.8                       for the Dutch market.
Result   (before taxation)
                                         0.0               3.9                       Now the restructuring is complete, the division can fo-
Shareholders’ funds                   325.6              345.4                       cus on further expansion, an important part of which
Number of staff on a                                                                 will be creating a banking processing company in
full-time basis at                                                                   the Netherlands, preceded by a joint back office.
31 December                           1,223              1,311                       Other plans include improving sales through the
New mortgage loans                   1,438.3           1,286.3                       distribution channels by making better use of syner-
                                                                                     gies and implementing the Globus processing system
Managed mortgage                                                                     first in the Netherlands and then in Belgium.
portfolio                            5,724.6           4,900.0
                                                                                     The disappointing developments on the stock ex-
Earlier losses in Bank Nagelmackers changed into a modest                            change have also affected Delta Lloyd Group’s
contribution to profits. The results of Bank Nagelmackers                            banking division and have led to a noticeable drop
were fully consolidated in 2002 for the first time. Never-                           in assets managed and a large reluctance to invest
theless, the consolidation of this bank together with the                            on the part of individual customers. Nevertheless,
booked integration costs, led to a decrease in results before                        financial results are in accordance with estimates.
tax for Delta Lloyd Banking group by 100% to D 0.0 million.                          Capital and reserves were also at a proper level.
The revenue has grown with 43% to D 294 million. Mortgage                            However, commission income was low due to a
loans, like previous years, showed growth of 12% to D 1,438                          decline in investment activities. A considerable cost
million. The total portfolio increased to D 5.7 billion (+17%).                      reduction (15 per cent) had a positive effect on the
D 966 million of the mortgage portfolio was securitised                              result.
this year; as a result, an amount of D 2.5 billion of the total
portfolio has been securitised now.



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                                                                             divisions

Delta Lloyd Deutschland



Delta Lloyd Deutschland, with its head office in Wiesbaden,                       Consumer and business spending in Germany was
focuses on asset accumulation and management, and                                 characterised by major restraint, also for insurance.
financing for individual and commercial customers. The                            This was caused by the relatively poor German
division consists of the insurance companies Berlinische                          economy.The German stock exchange index (DAX)
Lebensversicherung and Hamburger Lebensversicherung,                              fell by nearly 44 per cent in 2002. As some German
Gries & Heissel Bankers, Delta Lloyd Immobilien, Delta Lloyd                      insurers got into solvency troubles a joint emergency
Investment Managers, BVE Beratungsgesellschaft für Ver-                           insurer was established (Protektor). Delta Lloyd
sorgungseinrichtungen and Delta Lloyd Finanzpartner.                              Deutschland contributes to the financing of this
                                                                                  emergency insurer.
In millions of euros                  2002             2001
                                                                                  These developments led to a weaker position for
- Gross premium income       660.0            619.0                               Delta Lloyd in Germany. Its position may remain
- Investment income          -95.1             24.0                               strong, but a reduction in profit sharing for poli-
- Interest                     5.1              5.3                               cyholders is inevitable, unfortunately. Delta Lloyd
- Commission                  11.4             11.2                               Germany will have to strengthen and accelerate its
- Other income                 2.5              2.8                               cost reduction programme.
Revenue                              583.9            662.3
Result   (before taxation)
                                      - 6.1             5.1                       Positive points include satisfactory sales figures, mainly
Shareholders’ funds                   48.4             -25.6                      single premiums, but also public appreciation of
                                                                                  the excellent quality of the products offered by this
Number of staff on a full-                                                        division. In a comparative study, the Riester pension
time basis at 31 December             924               986                       product and the disability pension product were
                                                                                  labelled best. The Delta Lloyd Global Quality invest-
                                                                                  ment fund, introduced mid 2002, ranked second by
The economic recession affects Germany even more than
                                                                                  durability criteria amongst ethical funds.
the Netherlands. The German stock exchange index (DAX)
fell by 44% in 2002. On the other hand, sales were accept-
                                                                                  The development of the all finance concept in the
able. Total gross premium income increased in comparison
                                                                                  Group has meanwhile been continued. Combina-
with 2001, by 7% to D 660 million. Pre-tax results for Delta
                                                                                  tion products were developed with Berlinische
Lloyd Germany fell sharply in 2002, down to a loss of D 6.1
                                                                                  Lebensversicherung, Gries & Heissel Bankiers and
million.
                                                                                  Delta Lloyd Investment Manager. Delta Lloyd Finanz
                                                                                  Partners offers the German market unique products
                                                                                  in co-operation with Bouwfonds (Building Fund) or
                                                                                  Deutsche Direkt Bank.




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                                                                                divisions

Delta Lloyd Life Belgium



Delta Lloyd Life came about after a merger of the Belgian                            Gross premium income for Delta Lloyd in Belgium
companies CGU Life and OHRA Belgium Life. Together with                              increased significantly due to co-operation with Delta
Norwich Union, these companies only operated in the life                             Lloyd Bank and Bank Nagelmackers 1747.The other
insurance market in Belgium. The three companies have be-                            two distribution channels, through independent in-
longed to the same parent company since early 2001: Delta                            termediaries and directly, are also showing growth.
Lloyd Group. The division is based in Brussels, has around                           However, the negative financial conditions affected
200 employees and achieved a revenue of D 203.9 million in                           Belgian business too.While the demand for investment
2001. Delta Lloyd Life Belgium is concentrating firstly on                           insurance has virtually stopped, those with a guar-
growth in the market of long-term savings and the insurance                          anteed return are very successful now that the need
of life risks. The grouping together of Belgian Life activities                      for security in connection with savings is growing.
is an important part of this new strategy.                                           In this respect, the successful image campaign ‘Delta
                                                                                     Lloyd Financial Service, for a good life’ will be
                                                                                     continued.
In millions of euros                  2002                2001

- Gross premium income       287.7             183.0                                 The internal integration process goes on, due partly
- Investment income           18.4              20.9                                 to setting up a Service Centre with regional teams.
Revenue                              306.1               203.9                       Replacing the name Norwich Union by Delta Lloyd
Result   (before taxation)
                                     -21.4               -23.2                       Life has strengthened the successful model of ‘one
Shareholders’ funds                    6.2               -13.7                       single label, multi-distribution’. In commercial lines
                                                                                     business, a new pension product named Scala Ex-
Number of staff on a full-                                                           ecutive was launched. The start of Commercial Life
time basis at 31 December              378                 278                       was successful partly as a result of this.

                                                                                     Other activities in Belgium include OHRA Belgium,
Delta Lloyd Life is the strongest grower in the Delta Lloyd
                                                                                     which performed better after the restructuring of
Group. Life premium income increased by 71% to 251 mil-
                                                                                     some activities.
lion in 2002. The combination with Delta Lloyd Bank in par-
ticular, proved very valuable. Life insurance sales via Delta
Lloyd Bank more than doubled in the year under review.
Meanwhile, life business represents 87% of Belgian pre-
mium income. The considerable growth of Life revenues
is attended by losses in the start-up phase. Total pre-tax
results of the Belgian insurance activities improved from
a loss of D 23.2 million in 2001 to a loss of D 21.4 million
in 2002.




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                                                                                divisions

Ennia Caribe



Ennia Caribe is the most prominent full service insurer in                           Ennia Caribe showed a very slight positive result in
the Netherlands Antilles and Aruba. The responsibilities of                          2002, as the Aruban economy deteriorated and the
Ennia Caribe include: Ennia Caribe Life, Ennia Caribe General                        economy of the Netherlands Antilles improved only
Insurance, Amersfoortse Antillen (Medical Expenses) and                              very modestly. This downward development led to
OHRA Mortgages Bank (Aruba). Ennia Caribe is an inter-                               sharply intensified cost control. Ennia Caribe is the
mediary company focusing primarily on life, pension and                              last local insurer of Dutch origin on the Antilles
financial services, together with some profitable general                            and Aruba. Retention of this solid independence
insurance classes of business. Ennia Caribe is the largest                           comes first in the aim for strategic alliances in this
local insurance company with offices on Curacao, Aruba,                              marketplace.The necessity to expand in combination
Bonaire and St Maarten.                                                              with cost cutting applies to Ennia Caribe.The latter
                                                                                     must be achieved by using synergy options within
In millions of euros                  2002                2001
                                                                                     the group companies. The strategy is primarily on
                                                                                     life and pension products, with an important role
- Gross premium income       84.4               81.9
                                                                                     in this field for independent professional interme-
- Investment income          17.3               15.9
                                                                                     diaries.
- Interest                    5.9                6.6
- Commission                  0.2                0.1
                                                                                     Some growth was realised in life and general insur-
Revenue                              107.8               104.5
                                                                                     ance business on the Antilles, but Aruba fell short.
         (before taxation)
Result                                 2.3                15.9
Shareholders’ funds                   23.6                37.4
                                                                                     The coming year may offer better prospects for both
                                                                                     group pension insurance and general insurance
Number of staff on a full-
                                                                                     products. The completed take-over of Amersfoortse
time basis at 31 December             173                  151
                                                                                     Antillen NV made a good contribution to revenues
                                                                                     in care business.
Ennia Caribe realised pre-tax profits in 2002 of D 2.3 million,
a decrease of 86% compared with 2001. Total premium
income increased by 3% to D 84.4 million.




                                                          BACK TO CONTENTS   BACK   37   FORWARD
                   annual accounts




                              ANNUAL ACCOUNTS
                         40   consolidated balance sheet after appropriation of profits
                         43   consolidated profit & loss account
                         44   consolidated cash flow statement
                         46   general notes to the annual account
                         54   explanatory notes to the consolidated balance sheet
                         77   explanatory notes to the consolidated profit & loss account
                         80   consolidated technical account life insurance
                         81   explanatory notes to the consolidated technical account life insurance
                         83   consolidated technical account general insurance
                         84   explanatory notes to the consolidated technical account general insurance
                         86   consolidated technical account care insurance
                         87   explanatory notes to the consolidated technical account care insurance
                         88   consolidated profit and loss account mediation activities
                         89   consolidated profit and loss account banking operations
                         90   explanatory notes to the consolidated expenses and commission
                         92   remuneration Executive Board
                         94   remuneration Supervisory Board
                         96   balance sheet of Delta Lloyd NV after appropriation of profits
                         97   profit & loss account of Delta Lloyd NV
                         98   explanatory notes to the balance sheet and profit and loss account of Delta Lloyd NV




BACK TO CONTENTS          39
                                                                consolidated balance sheet
                                                               after appropriation of profits
In millions of euros                                                           31/12/2002               31/12/2001




ASSETS
Insurance operations

Intangible assets
Goodwill P54                                                                       23.4                     20.0

Investments
Land and buildings P54                                              1,859.6                  1,720.4
Participating interests P55                                            69.3                     52.3
Other financial investments P55                                    19,872.5                 19,696.4
Securitised mortgage loans P57                                     -2,486.9                 -1,520.8
Deposits with ceding undertakings                                      79.0                     75.8
                                                                              19,393.5                 20,024.1

Investments for the benefit and risk of policy-
holders and savings fund investments P58                                       5,485.9                  6,701.9

Debtors
From direct insurance P59                                            332.0                    357.3
From reinsurance                                                      77.3                     16.6
Other debtors                                                        825.8                    492.0
                                                                               1,235.1                    865.9

Other assets
Tangible fixed assets P59                                             51.7                     40.9
Cash and cash equivalents                                            523.8                    412.8
Other assets                                                          88.2                     66.6
                                                                                 663.7                    520.3

Prepayments and accrued income
Accrued interest and rent                                            253.3                    344.4
Deferred acquisition costs P60                                       214.8                    204.5
Other prepayments and accrued income                                 243.2                    169.4
                                                                                 711.3                    718.3

Total assets insurance operations                                             27,512.9                 28,850.5

Banking operations
Total assets bank P61                                                          5,267.9                  5,388.1

TOTAL ASSETS                                                                  32,780.8                 34,238.6



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                                                                  consolidated balance sheet
                                                                 after appropriation of profits


In millions of euros                                                       31/12/2002               31/12/2001




LIABILITIES
Group capital and reserves

Shareholders’ funds P65                                         1,713.0                  2,353.9
Perpetual subordinated convertible loan P66                       172.4                    172.4
Fund for general banking risks P66                                  3.3                      9.3
                                                                           1,888.7                  2,535.6

Minority interests                                                               5.7                     7.3

Insurance operations
Technical provisions
Unearned premiums and unexpired risks P68                         444.2                    383.2
For life insurance P68                                         15,727.7                 14,973.1
For claims outstanding P68                                      1,341.9                  1,260.6
For bonuses and rebates P68                                       209.0                    607.1
                                                                          17,722.8                 17,224.0
Reinsurers’ share P68                                                      -1,501.5                -1,464.8
                                                                          16,221.3                 15,759.2

Technical provisions for the benefit and risk of
policyholders and savings fund investments P68                             5,800.6                  6,765.1
Reinsurers’ share                                                             -39.3                   -37.3
                                                                           5,761.3                  6,727.8

Other provisions P70                                                          67.1                    104.7
Deposits received from insurers                                            1,141.2                  1,214.3
Creditors
From direct insurance P71                                         914.3                    783.0
From reinsurance                                                   35.4                     14.6
Other liabilities P71                                           1,326.0                  1,340.3
                                                                           2,275.7                  2,137.9
Accruals and deferred income P71                                             643.0                    753.0
Total liabilities insurance                                               26,109.6                 26,696.9

Banking operations
Total liabilities bank P73                                                 4,776.8                  4,998.8

TOTAL LIABILITIES                                                         32,780.8                 34,238.6




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                                                        consolidated profit and loss account
In millions of euros                                                             2002                2001




Result technical account
Life P80                                                           67.1                   144.1
General P83                                                       -10.9                    -7.5
Care P86                                                           -1.4                     8.0
                                                                             54.8                  144.6

Investment income P77
Gross investment income                                           878.8                 1,279.7
Interest securitised mortgage loans                              -113.0                   -59.1
                                                                            765.8                 1,220.6

Investment expenses P79                                                     -171.2                 -199.2

Allocated investment return to technical
accounts of
Life P80                                                         -362.1                  -720.5
General P83                                                       -57.0                   -52.8
Care P86                                                          -26.1                   -22.6
                                                                            -445.2                 -795.9

Other income
Result mediation activities P88                                    1.3                     -0.5
Result banking activities P89                                      1.9                      3.1
Other P79                                                         41.0                     61.1
                                                                             44.2                   63.7

Other expenditure P79                                                        -90.8                  -67.0


Result before taxation                                                      157.6                  366.8

Taxation P79                                                                 -19.9                  -67.4

Result after taxation                                                       137.7                  299.4

Minority interests                                                                  -                -2.3

Net result                                                                  137.7                  297.1




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                                                                consolidated cash flow statement
In millions of euros                                                                       2002                    2001




Cash flow from operating activities
Net profit                                                                137.7                      297.1
Increase technical provision net of reinsurance                          -515.8                    1,096.0
Movement in provisions                                                    -35.4                        -7.8
Depreciation interest rate discounts                                      145.4                        97.3
Depreciation tangible fixed assets                                          16.4                       16.9
Depreciation goodwill                                                       10.6                       13.1
Movement in short-term liabilities                                       -101.6                     -362.2
Deferred acquisition costs                                                -10.3                        14.5
Interest rate discounts granted                                          -134.0                     -264.3
Movement in receivables                                                   - 83.0                    -231.4
Other movements                                                             - 4.9                     -11.2
                                                                                       -574.9                    658.0

Cash flow from investment activities

Investments and purchases
Investments in land and buildings and shares                           -3,627.1                    -3,645.1
Investments in group companies and participating
interests                                                                -227.7                     -141.4

Investments in other financial investments                            -31,660.7                   -17,143.0
Purchases of tangible fixed assets                                        - 43.1                      -33.3

Sub-total                                                                           -35,558.6                 -20,962.8




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                                                                consolidated cash flow statement


In millions of euros                                                               2002                    2001




Disinvestments, redemptions and disposals
Disposals of investments in land and buildings
and shares                                                       3,268.1                   3,807.0
Investments in group companies and participations                  173.8                          -
Disposals of other financial investments                        31,868.1                  16,778.4
Disposals of tangible fixed assets                                  19.5                       0.6

                                                                            35,329.5                  20,586.0


Movements in investments for the benefit and risk
of policyholders and savings fund investments                                1,215.9                    -381.2

                                                                              986.8                     -758.0


Cash flow from financing activities
Movements in long-term liabilities insurance                      114.4                        9.7
Movements in long-term liabilities banking
operations                                                        -422.1                   1,196.6
Movements in deposits for reinsurers                                 -3.3                     -2.3
Movements in short-term loans                                        92.1                   -925.7
Dividends paid                                                     - 82.0                    -93.0
                                                                              -300.9                    185.3

Movement in cash and cash equivalents                                         111.0                      85.3




                                             BACK TO CONTENTS               BACK     45   FORWARD
                         notes to the annual accounts
     1 Introduction



     1.1 GENERAL                                                                                                            1.2 CONSOLIDATION PRINCIPLES

     Delta Lloyd NV is an economic unity consisting of            In this respect, the determination of the minimum         The consolidation includes all companies in which
     operating companies, the key activities of which             level of the revaluation reserve is based on the dif-     Delta Lloyd, directly or indirectly, has an interest
     include insurance and banking. The classification            ference between the cost price and market value of        of more than one half of the voting rights in the
     of the various items in the consolidated balance             the relevant investment category as a whole. With         general meeting of the shareholders or otherwise
     sheet and profit and loss account, as well as the            effect from 2002, an adjusted directive from the          has power to exercise control over the operations
     accounting principles and determination of results           Board of Annual Reporting has came into effect,           and which can be considered group companies.
     have been brought in line as much as possible with           whereby a distinction should be made between the          Consolidation takes place on the basis of the inte-
     legislation and common practice in the relevant              various sub-categories within the equity type invest-     gral method. The third party participation in group
     branches of industry. The profit and loss account            ment for the determination of the minimum level of        equity is included in the item minority interests.The
     has been drawn up with due observance of Section             the revaluation reserve. Delta Lloyd has opted not        consolidated balance sheet gives a separate presen-
     2:402 of the Dutch Civil Code.                               to change its current system to the adjusted Direc-       tation of insurance and banking assets and liabili-
                                                                  tive, as it is of the opinion that this system links up   ties. All intercompany transactions, balances and
     Delta Lloyd pursues an investment policy on the basis        better with the policy pursued by the company and         unrealised surpluses and deficits on transactions
     of asset-liability management for the best possible          therefore offers a better insight into the actual re-     between Group companies have been eliminated.
     long-term match between the risk and return profile          sults of the enterprise. If this valuation system were
     of the insurance portfolio and the investment port-          not continued by Delta Lloyd, the result would have
     folio. On account of this, yields are allocated to the       been s 225 million lower for 2002, and would have
     result on the basis of a long-term yield profile. When       led to a loss of s 87 million.
     it concerns fixed-interest securities, the valuation is
     against redemption value combined with a spread of
     share premium/share discount upon purchase, as well
     as a spread of realised differences upon sale over the
     (remaining) term of the original investment by result.
     Equity type investments (shares and property) are val-
     ued at current value with a spread of the capital gains
     and losses by result, on the basis of the so-called struc-
     tural yield method. This approach means that Delta
     Lloyd holds equity type investments as one single
     category. In the annual accounts, Delta Lloyd employs
     a system of valuation and determination of results for
     this item, which link up.




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                                        notes to the annual accounts

     2 Valuation of assets and liabilities



     2.1 GENERAL                                                2.2 INSURANCE OPERATIONS

     Assets and liabilities are stated at nominal value, less   2.2.1 Intangible fixed assets                            Participating interests
     provisions if any, unless another valuation principle                                                               Participating interests on which significant influence
     is mentioned below.                                        Goodwill                                                 can be exercised are valued at net asset value,
     Income and expenditure have been allocated to the          Goodwill, negative or positive, is capitalised (as an defined in accordance with the group’s valuation
     financial year to which they relate, except for the        asset or liability respectively) in the year of acquisi- principles. Movements in value for participating in-
     movements shown in the valuation of assets and             tion and written off on a straight-line basis over the terests are accounted for in the revaluation reserve.
     liabilities which have been accounted for in the           lesser of its estimated useful life or 20 years. Any Other participations are stated at a safe estimated
     shareholders’ funds directly.                              negative goodwill will be taken to the participation value (based on the intrinsic value and yield of the
                                                                reserve, unless there are anticipated future losses companies concerned). Amounts receivable from
     Foreign currencies                                         which is probable and can be measured reliably. participating interests are valued at nominal value
     Assets and liabilities denominated in foreign currencies   Impairment that is expected to be of a permanent less provisions deemed necessary. Dividends re-
     are translated at year-end exchange rates. Foreign         nature is taken into account.                            ceived are included in the profit and loss account.
     currency transactions are accounted for at the ex-
     change rates prevailing on the date of the transac-
     tions. Translation gains and losses included in the        2.2.2 Investments                                       2.2.3 Other financial investments
     valuation differences in investments, consolidated
     foreign group companies and loans to consolidated          Land and buildings                                      Fixed interest securities
     group companies, which are permanent in nature,            Land and buildings are valued at estimated return of    Investments in fixed interest securities are valued at
     are charged to equity. The other translation gains and     private sale as rented property. Internal valuations    redemption value less provisions deemed necessary,
     losses are accounted for in the profit and loss account.   are done annually and valuations by external inde-      which are frequently supplemented from the return
                                                                pendent appraisers are done on land and buildings       on investments.The redemption value usually equals
     Financial instruments                                      on a rotation basis in such a way that all land and     the nominal value.
     Financial instruments, entered into to cover the own       buildings are valued at least once every five years.    The difference between the redemption value and
     positions, are accounted for according to the valuation    Buildings purchased are valued at cost in the year      the purchase price is included as yield difference in
     principles applying to such positions.                     of acquisition. In the event of newly constructed       the deferred liabilities as yield difference (on bal-
     Financial instruments, not entered into to cover the       buildings valuations are made at the lower of cost      ance premium) or transitory liabilities (on balance
     own positions, are valued at market value or possible      plus notional interest or the market value of the       discount), and is accounted for in the profit and
     return value. Valuation differences are included in the    year of completion. Property under development          loss account over the average remaining term of the
     profit and loss account.                                   is valued at the lower of amounts invested plus         investment.
                                                                notional interest or market value. Realised and un-
                                                                realised movements in value or currency exchange
                                                                rate movements relating to land and buildings are
                                                                directly charged to the revaluation reserve, taking
                                                                into account taxation.




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                                        notes to the annual accounts

     2 Valuation of assets and liabilities




     The difference between the return on sale and the         2.2.4 Investments and technical provision for the          Other assets
     redemption value is also accounted for as yield differ-   account and risk of policyholders and savings              This includes projects developed for resale. These
     ence and spread over the profit and loss account for      fund investments                                           are valued at invested amount plus notional interest
     the remaining term, insofar as the sold fixed interest                                                               or lower market value, less instalments paid by buyers.
     securities have been replaced by similar investments.    These investments consist of three groups: unit-linked
     If this condition is not met, realised movements in      investments, segregated funds and savings fund
     value on fixed interest securities are included in the   investments. The unit-linked investments and sav-           2.2.6 Prepayments and accrued income
     result as one amount.                                    ings fund investments shall be valued at current            This includes accrued interest, current rent and
                                                              value, as provided by Section 2:402 of the Dutch            deferred acquisition costs. Acquisition costs are
     Other securities                                         Civil Code. As far as the savings fund investments          the cost incurred in closing an insurance contract
     Shares and other variable interest securities in the concerns, this provision is not in accordance with              through intermediaries. For insurance contracts with
     investment portfolio are valued at market value. the Rules about the valuation of the investments                    periodic premium payment, the acquisition cost
     Listed funds are included at year-end quoted prices, in the guilder investment fund. In order to pro-                incurred in respect of varying business volume are
     unlisted securities are stated at safe estimated market vide an insight into the current value of these              capitalised and amortised. Amortisation is generally
     value. Investmentpools are valued as much as possible investments, this value is included in the explana-            spread over the period of the contract.
     on own valuation principles based upon the reports tory notes. For the valuation of the segregated
     of the manager of the pool.                              pools, the same principles are used as those for            The deferred acquisition cost in general insurance
     Realised and unrealised differences in value relating the valuation of the investments made at the                   operations includes a provision for unearned pre-
     to other securities are directly included in the re- company’s own risk. When the valuation deviates                 miums to the risk instalments not yet lapsed. The
     valuation reserve, taking into account taxation.         from our principles, this is taken into account in          deferred acquisition cost in the Life operations in-
                                                              the calculation of the insurance liabilities under          cludes the commission to intermediaries and own
     Securitisation                                           consideration.                                              sales force. Amortisation is spread over the term
     Included in other financial investments are securitised                                                              of premium payment of the insurance (taking into
     mortgage loans. In accordance with the accounting                                                                    account of the availability of the cover from the
     principles for such transactions adopted by Delta 2.2.5 Other assets                                                 premium), with a maximum of 10 years.
     Lloyd NV’s parent company in the UK, these balances
     are accounted for on the basis of “linked presentation”. This item includes tangible fixed assets, cash and
                                                              cash equivalents and other assets.

                                                               Tangible fixed assets
                                                               Data processing equipment is valued at the historical
                                                               cost price less accumulated depreciation. Data pro-
                                                               cessing equipment is depreciated over the estimated
                                                               useful life. Other tangible fixed assets are also valued
                                                               at the historical cost price less accumulated depre-
                                                               ciation. Other tangible fixed assets is written of on
                                                               a straight-line basis over 3 to 10 years. Impairment,
                                                               which can be expected to be permanent, is taken
                                                               into account.




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                                        notes to the annual accounts

     2 Valuation of assets and liabilities




     Reserves                                                   In addition, the revaluation reserve in the consoli-   Actuarial provisions medical expenses
     The participation reserve includes movements in            dated annual accounts includes all movements in        The resolutions and directives about actuarial prin-
     the retained profits of the participations insofar as      the net asset value of the subsidiaries if not ac-     ciples of the Pensioen- en Verzekeringskamer are
     necessary for the maintenance of the desired level         counted for under participation reserve.               the basis of the calculation of the actuarial provision
     of solvency, and the legal reserve for retained profits.                                                          for medical expenses included in the provision for
     At the same time, the movements on the negative                                                                   non-earned premiums and current risks. Actuarial
     goodwill account are included in this reserve, if they     2.2.7 Perpetual subordinated convertible loan          advice is included in this respect.
     had not already been accounted for in the profit and
     loss account.                                                                                               Provision for current risks
                                                                The perpetual subordinated convertible loan is val-
                                                                ued at market value at the moment of issue.      The provision for current risks includes amounts to
     The revaluation reserve includes realised and                                                               compensate premium effects, originated partly by
     unrealised results on investments, realised and                                                             Government measures, as well as to cover the risk
     unrealised results on movements in currency ex- 2.2.8 Insurance liabilities                                 of premiums of insurance contracts which cannot
     change rates, as well as the taxes related to these                                                         adequately be increased in the next few years in
     movements. The profit and loss account includes These are generally long-term by nature.                    comparison with the increase of claims. In addition,
     the structural return on investment in shares and                                                           this provision provides for amounts for future risks
     land and buildings.This return consists of the direct Provision unearned premiums and unexpired in medical expenses, the calculation being based on
     return (dividends and rent) and an amount for indi- general insurance risks                                 a conservative prospective actuarial method, taking
     rect return. The return is calculated by determining This provision is defined in proportion to the risk into account the conditions set for current insurance
     the average of the %-return over the past 30 years instalments not yet lapsed over own risk premium. contracts and expected market developments.
     and by multiplying this average by the average value Separate provisions are made for insurances with a
     of these investments over the past 7 years, recalcu- gradually increasing risk in the course of the period
     lated for purchases and sales. The indirect return of of insurance, at a premium level independent on age.
     these investments is then calculated as the difference This provision includes also a catastrophe provision
     between the return and the realised direct return. for storm damages. Allocations are to take place an-
     The indirect return is withdrawn from the revaluation nually based on saved and market related premiums
     reserve to the extent that the balance of this reserve for future catastrophes.Withdrawals are made to pay
     is positive.                                            claims after a catastrophe storm.
     On top of that, the minimal legally required reserve
     needs to be maintained. This reserve concerns the
     unrealised difference between the balance sheet
     value and the cost price of the equity type investments
     as a whole.




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                                        notes to the annual accounts

     2 Valuation of assets and liabilities




     Actuarial reserves life                                    tion. The provisions for disability and personal ac-      2.2.10 Other provisions
     The provision for actuarial reserves life are based on     cident insurance equals the discounted value of the
     the recent mortality tables, taking into account the       expected claims payment.Terms, waiting periods as         Provision for deferred taxation
     development in the mortality risk in the next few          well as rehabilitation chances and rates of mortality     A provision has been made for the claim on all eligible
     years. An extra provision is created in this respect.      are all taken into account.                               differences between the commercial and fiscal
     The provision is determined in accordance with the                                                                   valuation of assets and liabilities, and on the tax
     net method and is increased by a provision for ad-         Provision for bonuses and rebates                         allowable reserves. This provision equals the cash
     ministration and paying out charges. The creation of       This provision relates to profit shares of group          value of the future tax liabilities. Considering the
     the provision for supplementary insurances is made         contracts to be allocated to the financial year but       estimated terms, the calculation of the liabilities
     insofar as payments are made as a result of claims         not yet booked. The volume is determined by an            is based on percentages varying from zero to the
     incurred but not yet reported. The chief actuary           estimate of the interest result, and the applicable       nominal tariff. If there is a net deferred taxation claim,
     will make an annual study into the adequacy of             contractual schemes are taken into account. Part of       it will be included in other claims insofar as it is
     the provision. The interest rate rebates which are         this provision relates to value increase of invest-       realisable in the future.
     to be written off are reduced perceptibly from the         ments as far as these value increases will result in
     actuarial life reserves. The accumulated capitalised       future profit sharing caused by legal or contractual      Provision for pensions
     interest rate rebates are stated at nominal value of       obligations.                                              The provision for pensions has been created for the
     discounts granted less amortisation. The rebates                                                                     purpose of adjusting pensions in payment of (former)
     granted in one specific year are written off on a                                                                    employees, for the cover of voluntary early retirement
     straight-line basis over ten years. This provision also    2.2.9 Technical provisions for the benefit and risk of    (VUT), early retirement and reduced pay.
     includes the provision for unearned premiums and           policyholders and savings fund investments
     the provision for benefits to be paid for life insurance                                                             Provision for reorganisation
     activities.                                                These technical provisions, as far as they relate to      The provision for reorganisation has been created for
                                                                unit-linked investments and savings funds, are valued     expenses as a result of restructuring measures.
     Provision for claims outstanding                           on the same principles as those used for the valuation
     The provision for claims outstanding is determined         of the investments on behalf of policyholders in re-
     with statistical methods.The provision is determined       lation to which they are held. The provision under
     using historical developments on the basis of re-          ‘actuarial reserves Life’ applies accordingly, in prin-
     ported claims, taking into account expected future         ciple, to the part related to segregated funds.
     claims, inflation trends and statistical variances. The
     applied method takes into account claims incurred
     before the balance sheet date, which are reported
     but not yet settled, claims not yet reported and in-
     come from subrogation in connection with claims
     and the acquisition of the ownership of insured
     property. The determination of the provisions is also
     based on claims settling costs still to be incurred, on
     the basis of average claims settling periods for the
     various types of claims, considering all future costs,
     including future price developments and cost infla-




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                                        notes to the annual accounts

     2 Valuation of assets and liabilities




     2.3 BANKING

     General                                                    Shares
     Unless another valuation principle is mentioned, the       Shares belonging to the investment portfolio and other
     accounting principles used by the Banking company          non fixed interest securities are carried at market value.
     are the same as those used by the Insurance company.       Differences of valuation are accounted for in the revalu-
                                                                ation reserve shares and variable interest securities. If
     Banks and Loans and advances                               this revaluation reserve is insufficient to absorb price
     Banks include the bank’s receivables to foreign and        falls, such price falls are accounted for in the profit and
     domestic banks. Loans and advances include loans           loss account. Shares and other variable securities be-
     and advances to the public and private sector.             longing to the trade portfolio are also stated at market
                                                                value. Differences in value are charged to the profit and
                                                                loss account. The other shares are valued at the lower
     2.3.1 Investments                                          of purchase price or market value. Non-listed shares
                                                                and other variable securities are stated at estimated
     Interest bearing securities                                return value.
     Bonds and other fixed interest securities held in the
     investment portfolio are valued at redemption value,       Investment portfolio
     less a depreciation for reduced value. The difference      The investment portfolio comprises bonds and other
     between this value and the purchase price of these         fixed interest securities as well as shares and other
     fixed interest papers is accounted for in the profit and   variable-yield securities, which are held as fixed assets
     loss account in proportion to the average remaining        and which, under the bank’s policy, are held for
     term of the investment in the profit and loss account.     portfolio investment purposes.
     Results due to the sale of fixed interest securities be-
     longing to the investment portfolio and for which re-
     placement purchases have taken place are accounted
     for in the profit and loss account, taking into account
     the weighted average term of the investment portfo-
     lio. Listed bonds and other fixed interest securities
     belonging to the trade portfolio are valued at the last
     quoted selling prices at the close of business on bal-
     ance sheet date. Differences in value are accounted for
     in the profit and loss account.The other securities are
     stated at the lower of cost price or market value.




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                                       notes to the annual accounts

                                                              3 Determination of the result                            4 Explanatory notes to the cash flow
                                                                                                                         statement



     Tangible fixed assets                                    Revenue                                                  The consolidated cash flow statement has been
     Owner-occupied buildings, including land, are valued     Revenue is the total of:                                 drawn up in accordance with the indirect method,
     at market value.The market value is based on the value   - all premiums charged to third parties including        distinction has been made between cash flows from
     determined by external assessors. The buildings            inwards reinsurance; premiums also include             operating, investing and financing activities. In the
     and fixed installations are subject to straight-line       amounts due by savers to the savings funds, volume     net cash flow from operating activities the result is
     depreciation over the estimated life, with a maxi-         discount and return policy charges;                    adjusted for items in the profit and loss account or
     mum of 50 years without taking into account any          - investment income;                                     movements in balance sheet items which do not
     residual value. Movements in value are charged to        - gross commission mediation operations;                 lead to collection or spending in the financial year.
     the shareholders’ funds, less taxes relating to these    - gross commission bank.                                 Several similar items of the Insurance activities and
     movements.The investments in rental property and                                                                  the Banking activities have been combined in the
     its contents are capitalised and are also subject to     Pension schemes Delta Lloyd NV                           cash flow statement.
     straight-line depreciation, taking into account the      The pension schemes concluded for the employees
     estimated economic useful life.                          of Delta Lloyd NV in the Netherlands are based on an
                                                              average pay system. The liabilities resulting from
     Fund for General Banking Risks                           the periodic increase in the pensionable salaries as
     This fund has been included to cover general risks       well as from the increase in pension payments are
     relating to the banking operations. The balance of       insured in full and financed in full every year.Within
     additions and withdrawals to and from this fund is       the Group, pension schemes exist with other fund-
     shown in the profit and loss account under ‘Addition     ing methodologies.
     or withdrawal to/from the Fund for General Bank-
     ing Risks. Taxation to be paid or received on the        Extraordinary income and expenditure
     movements in this fund are charged or debited or         This item includes those expenses which by their
     credited to the fund.                                    nature, frequency and volume are not included in
                                                              ordinary operations.

                                                              Taxation
                                                              Corporate taxation is calculated on the estimated
                                                              taxable amount, taking into account available fiscal
                                                              facilities. In the annual accounts this tax expendi-
                                                              ture is allocated to the results, to equity and to the
                                                              provision for deferred taxation.

                                                              Appropriation of profits
                                                              The appropriation of profits has been made on the
                                                              basis of article 35 of the Articles of Association.




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                                                             explanatory notes to the consolidated
                                                                        balance sheet
Insurance activities
In millions of euros                                                                             31/12/2002             31/12/2001




ASSETS

Intangible assets
Goodwill
Balance sheet value at 1 January                                                         20.0                    20.7
Purchases                                                                                10.2                    12.2
Deprecation                                                                              - 6.8                  -12.9
                                                                                                     23.4                   20.0
Investments
Land and buildings
Fully owner occupied                                                                 103.1                      119.5
Not fully owner occupied                                                             100.6                       40.2
Other                                                                              1,655.9                    1,560.7
                                                                                                  1,859.6               1,720.4

Balance sheet value at 1 January                                                   1,720.4                    1,634.2
Purchases                                                                            254.8                       86.3
Sales                                                                               -140.9                      -42.1
Revaluation and other movements                                                       25.3                       42.0
                                                                                                  1,859.6               1,720.4

The cost price of land and buildings at
31 December amounts to                                                             1,509.1                    1,317.0

The capitalised notional interest at the end of
the bookyear on land and buildings is                                                     3.6                    14.3




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                                                                          explanatory notes to the consolidated
                                                                                     balance sheet

Insurance activities
In millions of euros                                                                         31/12/2002              31/12/2001




The value of land and buildings was assessed
by third parties during the period 1998 – 2002 in
proportion to the value as at 31 December                                            2002                    2001                  2000    1999    1998
% of Land and buildings                                                             17.2                    22.2                  28.5    17.4    22.2


Participating interests
Balance sheet value at 1 January                                                 52.3                        52.9
Purchases                                                                        40.0                        11.6
Revaluation and other movements                                                 -23.0                       -12.2
                                                                                                 69.3                    52.3

The cost price of participations at 31 December
amounts to                                                                          80.6                    40.2


Other financial investments
Shares, participating interest and other variable
interest
securities
Listed                                                                        2,542.5                     3,828.2
Unlisted                                                                      1,058.3                       366.5
                                                                                             3,600.8                 4,194.7

Bonds and other fixed interest bearing securities
Listed                                                                        7,079.6                     6,817.9
Unlisted                                                                         48.9                       315.3
                                                                                             7,128.5                 7,133.2

Investment pools                                                                               104.1                   123.3
Mortgage loans                                                                               5,690.1                 4,917.8

Other loans                                                                                  2,838.2                 2,790.1
Provision for investment risks                                                                 -48.2                   -52.0
Deposits with credit institutions                                                              298.4                   300.0
Other financial investments                                                                    260.6                   289.3
                                                                                            19,872.5                19,696.4




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                                                                  explanatory notes to the consolidated
                                                                             balance sheet

Insurance activities
In millions of euros                                                            31/12/2002                31/12/2001




Balance sheet value at 1 January                                    19,696.4                  18,234.0
Purchases                                                           31,960.2                  20,678.9
Sales and redemptions                                              -31,030.2                 -18,658.1
Revaluation and other movements                                       -753.9                    -558.4
                                                                               19,872.5                  19,696.4

The market value of fixed interest rate securities
at the end of the year under review includes the
fair value of
Bonds and other fixed interest securities                            7,127.7                  6,693.2
Mortgages                                                            6,026.0                  4,732.0
Other loans                                                          2,937.4                  2,787.8

The difference between the book value and the
current value of these investments is due mainly
to the difference between the rate of interest at
the moment of purchase and the one on the
balance sheet date. Such interest rate differences
in respect of current liabilities on profit sharing
schemes do also affect the actuarial reserves to
which these investments are linked. The current
value of such investments is therefore of limited
importance.
The difference between the redemption value at
the balance sheet date and the cost price of the
bonds and other fixed interest bearing securities
amounts to                                                            -391.9                   -439.7
The share portfolio has been hedged through
derivatives against further decrease for an
amount of D 800 million. The cost price of the
other financial investments at the end of the year
under review amounts to
Shares, participating interests and other variable
interest-bearing securities                                          4,080.0                  4,067.9
Investment pools                                                       101.6                    121.2
Other financial investments                                            260.7                    287.0
Deposits with credit institutions                                      277.0                    284.1




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                                                                           explanatory notes to the consolidated
                                                                                      balance sheet

Insurance activities
In millions of euros                                                                     31/12/2002              31/12/2001




Securitised mortgage loans                                                    -2,486.9                -1,520.8
Income from these mortgage loans has been
transferred by Delta Lloyd NV to a company
established for this purpose (Arena 2000-I BV,
Arena 2001-I BV c.q. Arena 2002-I BV). These
companies issued bonds to finance these
transactions. No gains or losses are recognised
on this transfer.
Delta Lloyd NV is not obliged to support any losses
that may be suffered by the fixed rate noteholders
and do not intend to provide such support.
Additionally, the fixed rate notes were issued on
the basis that noteholders are only entitled to
obtain payment, as to both principal and interest,
to the extent that the securitisation company’s
respective available resources of Arena 2000-I BV,
Arena 2001-I BV c.q. Arena 2002-I BV, including
funds due from customers in respect of the secu-
ritised loans, are sufficient. It has also been
defined that noteholders have no recourse what-
ever to Delta Lloyd NV.
All the shares in Arena 2000-I BV, Arena 2001-I
BV c.q. Arena 2002-I BV are held by Stichting
Security Trustee Arena 2000-I BV, Stichting
Security Trustee Arena 2001-I BV or Stichting
Security Trustee Arena 2002-I BV. Delta Lloyd
NV does not own, directly or indirectly, any of the
share capital of the Arena 2000-I BV, Arena
2001-I BV or Arena 2002-I BV or any share in
Stichting Security Trustee Arena 2000-I BV,
Stichting Security Trustee Arena 2001-I BV c.q.
Stichting Security Trustee Arena 2002-I BV.
Delta Lloyd NV receives payments from Arena
2000-I BV, Arena 2001-I BV c.q. Arena 2002-I
BV in respect of fees for loan administrative
services, and also under the terms of interest
rate swaps written between Delta Lloyd NV and
Arena 2000-I BV, Arena 2001-I BV c.q. Arena
2002-I BV to hedge its respective exposures to
movements in interest rates arising from these
transactions.



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                                                                            explanatory notes to the consolidated
                                                                                       balance sheet

Insurance activities
In millions of euros                                                                      31/12/2002             31/12/2001




In each case the effect of the interest rate swaps
between Delta Lloyd NV and Arena 2000-I BV,
Arena 2001-I BV c.q. Arena 2002-I BV, is that the
securitisation company swaps all or part of the
interest flows receivable from customers in
respect of the securitised mortgage loans into
fixed interest flows which are designed broadly
to match the interest payable to fixed rate note-
holders.
Delta Lloyd NV has no right to repurchase the
benefit of any of the securitised mortgage loans
and no obligation to do so, other than in certain
circumstances where Delta Lloyd NV is in breach
of warranty.
As per the balance sheet date, Delta Lloyd NV
has for its own account invested in fixed interest,
non-preference bonds A for D 4,4 (D 26,5) million.
For D 0 (D 2,0) million in mezzanine fixed interest
bonds B.
For D 1,4 (D 1,5) million in fixed interest subor-
dinated bonds D.
These bonds were issued by Arena 2000-I BV
and are all due November 2062.

Investments for the benefit and risk of policy-
holders and savings fund investments
Unit-linked investments                                                         1,757.2                1,418.5
Segregated funds for group contracts                                            3,304.2                4,769.8
savings fund investments                                                          424.5                  513.6
                                                                                           5,485.9               6,701.9

Balance sheet value at 1 January                                                6,701.9                6,320.7
Purchases                                                                       3,506.4                1,537.8
Sales and redemptions                                                          -3,578.8                 -750.5
Revaluation and other movements                                                -1,143.6                 -406.1
                                                                                           5,485.9               6,701.9




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                                                                           explanatory notes to the consolidated
                                                                                      balance sheet

Insurance activities
In millions of euros                                                                        31/12/2002             31/12/2001




The market value of the investments for the
account and risk of policyholders and savings
fund investments amounts to                                                    5,485.9                   6,701.9
of which segregated funds for group contracts
amounts to                                                                     3,304.2                   4,769.8
of which savings fund investments amounts to                                     424.5                     507.0
The cost price of the investments for the benefit
of life insurance policyholders who bear the risk
and savings fund investments amounts to                                        5,618.5                   6,540.5
of which segregated funds for group contracts
amounts to                                                                     3,415.9                   4,512.2
of which savings fund investments amounts to                                     490.0                     503.2

The difference between the investments and the
provision for the account of policyholders consists
mainly of future amounts to be invested into the
segregated funds, agreements having been
made on the period of introduction. The differences
are guaranteed.

Debtors
From direct insurances
Policyholders                                                                    231.2                     227.9
Intermediaries                                                                   100.8                     129.4
                                                                                              332.0                  357.3

Other debtors includes a deferred tax asset of                                   356.8                     198.0
The nominal value amounts to                                                     148.6                     -11.4

Other assets
Tangible fixed assets
The composition of this item is as follows
Computer equipment                                                                   13.0                   11.9
Other tangible fixed assets                                                          38.7                   29.0
                                                                                                51.7                   40.9




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                                                                             explanatory notes to the consolidated
                                                                                        balance sheet

Insurance activities
In millions of euros                                                                       31/12/2002              31/12/2001




Balance sheet value at 1 January                                                    40.9                   36.7
Additions                                                                           37.5                   16.9
Depreciations                                                                      -10.1                  -12.1
Disposals                                                                          -16.6                   - 0.6
                                                                                               51.7                    40.9

The total value of the tangible fixed assets at year
end amounts to                                                                     137.1                  120.2
Accumulated depreciation at year end amounts to                                    -85.4                  -79.3

Prepayments and accrued income
Deferred acquisition costs
Life insurance                                                                     152.5                  147.7
General insurance                                                                   62.3                   56.8
                                                                                             214.8                   204.5




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                                                                     explanatory notes to the consolidated
                                                                                balance sheet

Bank activities
In millions of euros                                                                  31/12/2002               31/12/2001




Total assets bank activities
Goodwill
Balance sheet value at 1 January                                               56.1                        -
Purchases                                                                       3.9                   56.3
Depreciation                                                                   -3.9                   - 0.2
                                                                                          56.1                     56.1
Bankers
This item consists of credit balances
Due on demand                                                              219.7                     314.6
Three months or less                                                       604.1                     282.2
Between three months and one year                                           10.2                      17.2
Between one and five years                                                      -                      4.3
                                                                                        834.0                    618.3

Specified by geographical region
The Netherlands                                                            698.0                      93.8
Other EU countries                                                         136.0                     524.5
                                                                                        834.0                    618.3

Receivables from clients
Mortgage loans                                                           1,064.2                   1,053.4
Loans to Governments                                                         2.7                       7.9
Other loans                                                                878.5                     954.3
Commercial loans                                                           696.2                     718.1
                                                                                       2,641.6                 2,733.7

Receivables from clients by sector
Private sector                                                           2,004.4                   1,881.8
Business sector                                                            698.9                     906.7
Provision for doubtful debts                                               -61.7                      -54.8
                                                                                       2,641.6                 2,733.7




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                                                                 explanatory notes to the consolidated
                                                                            balance sheet

Bank activities
In millions of euros                                                          31/12/2002             31/12/2001




Specified by term remaining
Due on demand                                                         411.1                  439.2
Three months or less                                                  511.6                  525.2
Between three months and one year                                     184.0                  320.8
Between one and five years                                            442.6                  654.1
More than five years                                                1,092.3                  794.4
                                                                               2,641.6               2,733.7

Specified by geographical region
The Netherlands                                                     1,079.7                1,145.7
Other EU countries                                                  1,508.5                1,529.3
Countries outside the EU                                               53.4                   58.7
                                                                               2,641.6               2,733.7

Interest bearing securities
This item consists of
Bonds listed (EU Government)                                         864.4                   791.2
Other bonds listed                                                   548.0                   450.9
Other securities                                                      34.2                   127.6
                                                                               1,446.6               1,369.7

Balance sheet value of fixed income securities at
1 January                                                           1,246.9                  658.4
Investment portfolio fixed income securities
purchase                                                             826.1                   267.9
Investment portfolio fixed income securities
change group                                                              -                  724.5
Investment portfolio fixed income securities
redemptions                                                          -390.7                 -175.6
Investment portfolio fixed income securities sales                   -273.3                 -228.3
                                                                               1,409.0               1,246.9

The difference of the redemption value at the
balance sheet date and the purchase price is                          -89.0                    7.4
The amount which has been pledged as security
and is not available for distribution                                 62.4                    18.4




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                                                                  explanatory notes to the consolidated
                                                                             balance sheet

Bank activities
In millions of euros                                                            31/12/2002              31/12/2001




Investments
This item consists of
Shares, listed                                                         18.6                     43.1
Shares, not listed                                                      3.4                      5.0
Participation interests                                                15.9                     15.5
Land and buildings                                                     14.4                     15.4
                                                                                    52.3                    79.0

Balance sheet value at 1 January investment
portfolio shares                                                       43.7                     30.1
Investment portfolio shares purchases                                  74.3                      1.2
Investment portfolio shares change group                                   -                    10.8
Investment portfolio shares sales                                    -105.0                         -
Investment portfolio shares revaluation & other                        -2.6                      1.6
                                                                                    10.4                    43.7

Tangible fixed assets
This item consists of
Computer equipment                                                     16.6                      4.0
Other tangible fixed assets                                            17.1                     33.3
                                                                                    33.7                    37.3

Balance sheet value at 1 January                                       37.3                     15.2
Changes to the group                                                        -                   10.7
Investments                                                              5.6                    16.2
Disposals                                                              -2.9                         -
Depreciations                                                          - 6.3                    -4.8
                                                                                    33.7                    37.3

The total value of the tangible fixed assets at year
end amounts to                                                         60.1                     58.0
Accumulated depreciation at year end amounts to                       -26.4                    -20.7




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                                                               explanatory notes to the consolidated
                                                                          balance sheet

Bank activities
In millions of euros                                                       31/12/2002             31/12/2001




Other assets
Receivables from unsettled security transactions                    16.2                  113.2
Balance of forward exchange transactions and
other receivables                                                   96.0                  288.1
                                                                             112.2                  401.3

Prepayments and accrued income
This item includes the amounts taken up on
account of
expenses paid in advance and income not yet
invoiced and received.                                                         91.4                   92.7

Total assets bank activities                                                5,267.9               5,388.1




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                                                                           explanatory notes to the consolidated
                                                                                      balance sheet

Group capital and reserves
In millions of euros                                                                     31/12/2002              31/12/2001




LIABILITIES

Shareholders’ funds
Balance sheet value at 1 January                                                         2,353.9                 2,887.4
Effect of change in accounting principles                                                       -                   -9.2
Restated balance sheet value at 1 January                                                2,353.9                 2,878.2

Movements
Revaluation of equity type investments                                          -728.6                  -594.0
Indirect yield                                                                  -181.5                  -223.0
Revaluation of investments                                                       131.7                    77.6
                                                                                           -778.4                 -739.4

Retained profits                                                                           137.7                   297.1
Uitkering dividend uit de reserves                                                          - 0.2                  -82.0
Balance sheet value at 31 December                                                       1,713.0                 2,353.9

Shareholders’ funds Insurance activities                                       1,334.9                 1,976.3
Shareholders’ funds Banking activities                                           378.1                   377.6
                                                                                         1,713.0                 2,353.9


From the date on which the ordinary shares of
Delta Lloyd NV are taken up in the listing of an
official stock exchange, the convertible preference
shares A may be converted on a one to one basis
into ordinary Delta Lloyd NV shares, along with
an amount of D 1,730.42 per convertible share in
cash. This payment will be offset, as much as
possible, against the perpetual subordinated
convertible loan.
The conversion price will be adjusted upon the
issue of ordinary shares in Delta Lloyd NV, in
the event of a restructuring of share capital in
Delta Lloyd NV or in the event of a share split of
the issued ordinary Delta Lloyd NV shares into
ordinary shares with a lower nominal value.




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                                                                            explanatory notes to the consolidated
                                                                                       balance sheet

Group capital and reserves
In millions of euros                                                                          31/12/2002              31/12/2001




Perpetual subordinated convertible loan                                                         172.4                   172.4
This loan with a nominal value of D 489.9 million
has a perpetual term at a rate of interest of 2.5%.
This rate is indexed annually by 1% from the
financial year 2000 until 2009 inclusive. The
loan is subordinated to all other liabilities of
Delta Lloyd NV.

Fund for general banking risks
Value at 1 January                                                                     9.3                      8.0
Changes to the group                                                                      -                     4.5
Transfer deferred taxation                                                             3.8                     -2.2
Addition charged to result                                                            -9.8                     -1.0
Value at 31 December                                                                                 3.3                   9.3

                                                                                              1,888.7                 2,535.6
Insurance company solvency
Current solvency                                                                2,013.6                     2,685.6
Legally required solvency                                                       1,140.6                     1,158.6
Solvency margin                                                                                 873.0                 1,527.0

The current solvency for the insurance company
of Delta Lloyd NV reported as a percentage of
the required solvency is                                                                        176.5                   231.8

Current solvency                                                                2,013.6                     2,685.6
Internal required solvency                                                      1,710.9                     1,737.9
(150% of legally required solvability)
Solvency margin                                                                                 302.7                   947.7




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                                                              explanatory notes to the consolidated
                                                                         balance sheet

Group capital and reserves
In millions of euros                                                      31/12/2002              31/12/2001




Solvency bank activities

Current key capital                                               258.1                   267.9

Current testing capital                                           304.7                   323.4
Required testing capital                                          174.8                   178.3
Solvency margin                                                             129.9                   145.1

BIS-Tier 1 ratio (%)                                                          12.2                    12.6
BIS- ratio (%)                                                                13.9                    14.5
Legally required BIS-ratio (%)                                                 8.0                     8.0

The current solvency in Delta Lloyd NV is 144%
(184%), as a percentage of the required solvency
as required by the supervisory bodies in the
insurance and banking industry.




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                                                                         explanatory notes to the consolidated
                                                                                    balance sheet

Insurance
In millions of euros                                                                    31/12/2002                31/12/2001




Technical provisions
Unearned premiums and unexpired risks
Provision for unearned premiums and unexpired
risks                                                                          364.9                   283.4
Catastrophe provision                                                            4.3                    17.7
Actuarial provision medical expenses                                            75.0                    82.1
                                                                                          444.2                     383.2

For life insurance
Actuarial reserves life                                                     16,141.1                 15,397.9
Interest rate rebates not yet written off                                     -413.4                   -424.8
                                                                                       15,727.7                  14,973.1

For claims outstanding
Provision for claims outstanding                                             1,323.4                  1,254.8
Other technical provisions                                                      18.5                      5.8
                                                                                        1,341.9                   1,260.6

For bonuses and rebates                                                                   209.0                     607.1

                                                                                       17,722.8                  17,224.0
Reinsurers‘ share of technical provisions
For unearned premiums and current risks                                        -24.0                     - 0.9
For life insurance                                                          -1,337.1                 -1,317.0
For paid claims                                                               -139.2                   -146.2
For profit sharing and discounts                                                -1.2                     - 0,7
                                                                                       -1,501.5                  -1,464.8

Technical provisions for the account and risk of
policyholders and savings fund investments
Technical provisions for the account and risk of
policyholders                                                                5,291.7                  6,243.2
Deposits held in the savings funds                                             508.9                    521.9
                                                                                        5,800.6                   6,765.1




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                                                               explanatory notes to the consolidated
                                                                          balance sheet

Insurance
In millions of euros                                                          31/12/2002                31/12/2001




Reinsurers’ share
Technical provisions for insurances in which
policyholders bear the investment risk                                           -39.3                     -37.3

Total technical provisions                                                   21,982.6                  22,487.0

Balance sheet value total technical provisions
at 1 January                                                     22,487.0                  21,558.1
Effect of change in accounting policies                                  -                     14.1
Adjusted technical provisions at 1 January                                   22,487.0                  21,572.2

Changes to the group                                                                   -                  174.8

Technical account Life
Change in technical provision net of reinsurance                   -184.0                   1,246.3
Profit sharing and discounts                                       -398.6                    -377.3
Movements interest rate discount                                     11.4                    -166.6
                                                                               -571.2                     702.4
Technical account General Insurance
Unearned premiums                                                    - 6.7                     5.3
Claims outstanding                                                   56.3                     56.9
                                                                                  49.6                      62.2
Technical account Care
Unearned premiums                                                    18.4                     -18.0
Claims outstanding                                                    -1.2                     -6.6
                                                                                  17.2                     -24.6

Total technical provisions at 31 December                                    21,982.6                  22,487.0

Catastrophy provision

Value at 1 January                                                   17.7                     18.4
Additions debited to the Profit & Loss account                        0.5                         -
Appropriations                                                      -11.1                         -
Released amounts (credited to the Profit & Loss
account)                                                              -2.8                     - 0.7
                                                                                    4.3                     17.7




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                                                                            explanatory notes to the consolidated
                                                                                       balance sheet

Insurance
In millions of euros                                                                          31/12/2002              31/12/2001




Interest rate discounts
Value at 1 January                                                                424.8                      258.2
Discount granted                                                                  134.0                      263.9
Depreciation interest rate discount                                              -145.4                      -97.3
Value at 31 December                                                                            413.4                   424.8


The provision for actuarial reserves as well as the
provision for sundry purpose includes:
respectively, relating to the pension schemes of
Delta Lloyd NV employees,
Actuarial reserves                                                                659.7                      619.5
Sundry purposes                                                                    41.7                       51.1

Other provisions
Provision for Pensions
Balance sheet value on 1 January                                                      50.9                    52.8
Payments charged to the provision                                                     -2.6                    -1.9
Additions                                                                              3.6                        -
Release                                                                               -3.3                        -
                                                                                                  48.6                    50.9

Provision for Reorganisation
Balance sheet value on 1 January                                                      14.1                    13.0
Payments charged to the provision                                                         -                  -14.5
Additions                                                                              5.4                    15.6
Release                                                                               -1.0                        -
                                                                                                  18.5                    14.1

Provision for Sundry purposes
Balance sheet value on 1 January                                                   39.7                       80.7
Payments charged to the provision                                                 -38.6                      -21.0
Release                                                                            -1.1                      -20.0
                                                                                                      -                   39.7

                                                                                                  67.1                  104.7
An amount of D 21.5 (D 42.3) million of the other
provisions has a short-term nature.




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                                                                        explanatory notes to the consolidated
                                                                                   balance sheet

Insurance
In millions of euros                                                                  31/12/2002             31/12/2001




Creditors
Debts from direct insurance operations
Intermediaries                                                                 33.2                   29.0
Policyholders                                                                 881.1                  754.0
                                                                                        914.3                  783.0

For amounts due to policyholders the payment
term can be specified as follows
One year or less                                                              641.6                  517.5
Between one year and five years                                                 2.0                   51.9
More than five years                                                          237.5                  184.6
                                                                                        881.1                  754.0

The average interest rate for amounts due with
a payment term of more than one year is                                       6.0%                   5.9%

Other creditors
Other long-term creditors
Term between one year and five years                                           46.8                   28.6
Term more than five years                                                     104.2                   97.4
                                                                                        151.0                  126.0

The average interest rate is                                                  5.6%                   6.7%

Short-term creditors
Dividend                                                                        0.2                   82.0
Corporate taxation                                                            327.0                  295.7
Other taxes and social security premiums                                       22.9                   18.2
Financial institutions                                                        316.4                  450.0
Other                                                                         508.5                  368.4
                                                                                       1,175.0               1,214.3
                                                                                       1,326.0               1,340.3

Accruals and deferred income
Provision for yield differences                                               420.8                  481.4
Other                                                                         222.2                  271.6
                                                                                        643.0                  753.0




                                           BACK TO CONTENTS   BACK TO HYPERLINK       BACK    71   FORWARD
                                                                            explanatory notes to the consolidated
                                                                                       balance sheet

Insurance
In millions of euros                                                                         31/12/2002             31/12/2001




Off balance sheet commitments and contingent
liabilities

Property under development                                                            31.1                   56.6

Commitments related to investments in property
development for resale                                                                17.0                   20.4

Guarantee for investing in other categories                                           23.4                    9.5

Rent commitments                                                                      48.6                   18.1

Pledged stock portfolio for pension agreement
NUTS OHRA Beheer BV                                                                   12.9                   18.6

Guarantees and other contingent liabilities issued:
Term between one year and five years                                              552.0                     531.1

Term between five and ten years                                                       80.3                   48.5

                                                                                               765.3                  702.8


A guarantee was issued in 2002 by one of the
group companies for the funding of possible take-
overs of insurance portfolios up to a maximum
amount of D 51 million.

A few claims were lodged. All of them are being
challenged. On account of legal advice and
information received, they are supposed not to
have a major adverse effect on the company’s
financial position. Therefore, no provisions have
been made.




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                                                                    explanatory notes to the consolidated
                                                                               balance sheet

Bank
In millions of euros                                                                 31/12/2002               31/12/2001




Total liabilities banking operations
Amounts due to credit institutions
Specified by term remaining
Due on demand                                                                 43.7                    43.3
Three months or less                                                          36.1                   279.9
Between three months and one year                                             14.6                     5.8
Between one and five years                                                     3.0                     2.1
More than five years                                                          13.1                    40.5
                                                                                      110.5                     371.6

Specified by geografic region
The Netherlands                                                               33.2                   306.7
Other EU                                                                      77.2                    64.9
Countries outside EU                                                           0.1                        -
                                                                                       110.5                    371.6

Amounts due to clients
Savings                                                                   939.8                      884.4
Specified by term remaining
Due on demand                                                           2,064.8                    1,137.5
Three months or less                                                      561.3                      724.4
Between three months and one year                                         125.8                       88.1
Between one and five years                                                304.6                      134.4
More than five years                                                      176.0                      741.9
                                                                                      4,172.3                 3,710.7

Other liabilities                                                                      396.4                    806.8

Accruals and deferred income                                                             70.0                     71.1




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                                                                 explanatory notes to the consolidated
                                                                            balance sheet

Bank
In millions of euros                                                           31/12/2002               31/12/2001




Provisions
Provision for sundry purposes
Balance sheet value at 1 January                                      32.2                       4.4
Appropriations                                                        -9.4                      -2.1
Additions                                                                 -                      2.5
Changes to the group                                                      -                     27.4
Release                                                               -2.1                          -
                                                                                   20.7                     32.2

Actuarial reserves
Balance sheet value at 1 January                                        6.4                       1.4
Appropriations                                                        - 0.4                     -1.0
Additions                                                               0.9                       1.7
Changes to the group                                                       -                      4.5
Release                                                                    -                    - 0.2
                                                                                      6.9                    6.4

                                                                                   27.6                     38.6
D 21.1 (D 11.9) million of the provisions are of a
short-term nature.

                                                                                4,776.8                 4,998.8




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                                                                 explanatory notes to the consolidated
                                                                            balance sheet

Bank
In millions of euros                                                        31/12/2002             31/12/2001




Off balance sheet commitments and contingent
liabilities
Contingent liabilities                                                        100.1                    53.5
This item includes the contingent liabilities on
account of guarantees, securities and several
liabilities as meant in section 403 paragraph 1,
sub f of Title 9 Book 2 of the Dutch Civil Code.

Irrevocable facilities                                                        123.8                    60.9
This item includes irrevocable credit facilities.

Currency risks
This item represents the sum of the counter value
in euros of the assets and liabilities in foreign
currency, specified as follows:
Assets                                                                        110.2                         -
Liabilities                                                                   109.4                         -

Derivatives
Derivatives are financial instruments embodied
in contracts the value of which is subject to one
or more underlying assets, reference prices or
indices.

At balance sheet date, the outstanding derivatives
can be specified as follows, classified according
to form and duration, together with their positive
replacement value.




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                                                                explanatory notes to the consolidated
                                                                           balance sheet

Bank
In millions of euros




                                                                    Notional      Notional     Notional      Notional       Positive
                                                                    amounts      amounts       amounts      amounts     replacement
                                                                                                                              value
Derivatives according to form and duration

                                                                    < 1 year   1 - < 5 year     > 5 year        total



Interest contracts OTC
Forwards                                                              40.0        781.5              -       821.5             5.4
Swaps                                                                 21.1        105.8          29.0        155.9                -
Bought Options                                                        49.5             -             -        49.5                -
Written Options                                                       49.5             -             -        49.5                -


Currency contracts OTC
Forwards                                                            812.4                 -            -     812.4           10.2
Swaps                                                                    -                -            -          -              -
Bought Options                                                        0.9                 -            -       0.9            0.9
Written Options                                                       0.9                 -            -       0.9               -

Stock Exchange Shares contracts
Bought Options                                                         1.3                -            -        1.3            0.5
Written Options                                                           -               -            -           -              -


                                                                               31/12/2002                  31/12/2001

Assets charged
Certain shares and bonds have been pledged as
collateral. These assets are therefore no longer
available for distribution.                                                         62.4                       49.2




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                                                     explanatory notes to the consolidated
                                                             profit & loss account
In millions of euros                                                                           2002                 2001




Investment income
The Netherlands
Land and buildings                                                            99.8                      102.0
Other investments                                                            949.0                    1,060.8
                                                                                         1,048.8                1,162.8

Realised and unrealised results on investments
for the benefit and risk of policyholders and
savings fund investments                                                                  -223.6                    2.1
                                                                                           825.2                1,164.9

Other EU countries
Land and buildings                                                            22.3                       23.4
Other investments                                                            185.5                      246.3
                                                                                          207.8                  269.7

Realised and unrealised results on investments
for the benefit and risk of policyholders and
savings fund investments                                                                  -284.5                 -229.9
                                                                                            -76.7                  39.8

Countries outside the EU
Land and buildings                                                                1.3                     1.3
Other investments                                                                17.1                    14.6
                                                                                            18.4                   15.9

Realised and unrealised results on investments
for the benefit and risk of policyholders and
savings fund investments                                                                   -1.1                        -
                                                                                          765.8                 1,220.6

The return on investments consist of
Direct return on investments                                                 584.3                      997.6
Indirect return on investments                                               181.5                      223.0




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                                                                                        explanatory notes to the consolidated
                                                                                                profit & loss account


In millions of euros                                                                                     2002       2001     2000     1999     1998




Summary return on equity type investments 1)

Land and buildings
Direct return (gross)                                                                                116.6        126.8    117.3     84.1     66.5
Unrealised investment return                                                                          25.3         42.0     60.0     46.6     49.9
Realised return on investments                                                                        -1.5          0.9      1.1      2.0       1.0
Direct asset management expenses                                                                      -5.0         -2.0     -1.2     -1.0     - 0.9
Total                                                                                                135.4        167.7    177.2    131.7    116.5

Shares
Direct return (gross)                                                                                 297.5       324.3    280.7    196.3     155.0
Unrealised investment return                                                                        -707.8       -949.1    197.0    197.1    -153.0
Realised return on investments                                                                      - 179.6       140.5     88.5     58.3     -10.0
Direct asset management expenses                                                                      -16.0       -18.1    -15.1     -9.6      -7.6
Total                                                                                               - 605.9      -502.4    551.1    442.1     -15.6

Total equity type investments
Direct return (gross)                                                                                 414.1       451.1    398.0    280.4     221.5
Unrealised investment return                                                                        - 682.5      -907.1    257.0    243.7    -103.1
Realised return on investments                                                                      - 181.1       141.4     89.6     60.3      -9.0
Direct asset management expenses                                                                      - 21.0      -20.1    -16.3    -10.6      -8.5
                                                                                                    - 470.5      -334.7    728.3    573.8     100.9

The income from land and buildings included for
market-compliant rents for immovable property
owner occupied, amounts to D 8.1 (D 9.1) million.

The return on investments is the balance of rental
income after deduction of property management
expenses, dividends, interest on fixed interest
investments after deduction of additions to
the provision for investment risks and relevant
movements of the balances.

1) Equity type investments includes ‘land and buildings’ as well as ‘shares’.




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                                                                          explanatory notes to the consolidated
                                                                                  profit & loss account


In millions of euros                                                                              2002               2001




The income from investments of the savings funds
amounts to                                                                          21.1                    19.7
The allocation of the return on investments to the
non-technical account is made on the basis of the
assets allocated to capital and reserves.

Investment expenditure
Management and interest expense                                                              -171.2                -199.2

Other income                                                                                  41.0                  61.1
Other income includes the result on property sale
projects, revenue on service rendered and revenue
of an incidental nature.

Other expenditure                                                                             - 90.8                -67.0
Other expenditure includes expenditure of an
incidental nature.

Tax charge
Tax charge                                                                        54.4                     128.4
Tax facilities                                                                    -7.4                      -9.5
Tax exempt income                                                               - 29.1                     -51.9
Effect of discounting deferred tax asset/liability                                - 0.9                     -3.3
Other                                                                               2.9                      3.7
Effective tax charge                                                                          19.9                  67.4




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                                                                consolidated technical account
                                                                        life insurance
In millions of euros                                                                           2002                  2001




Earned premiums net of reinsurance
Gross written premiums                                                        2,744.1                 2,686.6
Outward reinsurance premiums                                                   -104.5                   -99.1
                                                                                         2,639.6                 2,587.5

Allocated investment income                                                               362.1                    720.5

Other technical income net of reinsurance                                                  59.8                     20.0

Claims incurred net of reinsurance
Gross claims                                                                 -2,966.3                 -1,553.6
Reinsurers’ share                                                               125.0                    101.6
                                                                                        -2,841.3                 -1,452.0

Changes in technical provisions net of reinsurance
Actuarial reserves
Gross                                                                           146.2                 -1,256.5
Reinsurers’ share                                                                37.8                     10.2
                                                                                          184.0                  -1,246.3

Profit sharing and discounts                                                              142.3                     -21.6

Operating expenses                                                                        -462.6                  -457.0

Other technical expenditure net of reinsurance                                             -16.8                     -7.0

Result technical account life insurance                                                    67.1                    144.1




                                             BACK TO CONTENTS   BACK TO HYPERLINK       BACK     80   VOORUIT
                                                       explanatory notes to the consolidated
                                                         technical account life insurance
In millions of euros




                                                                With profit   Without profit     Contracts for    Contracts for       Total
                                                                     share            share    risk and benefit risk and benefit
                                                                                               of policyholders of policyholders
                                                                                                    with profit   without profit
Gross written premium can be broken down as follows                                                   bonuses          bonuses


Financial year 2002

Individual insurance agreements
Annual premiums                                                   425.9              20.3             109.5            298.6
Single premiums                                                   680.6               9.1              84.8             77.0

                                                                1,106.5              29.4             194.3            375.6       1,705.8


Group contracts
Annual premiums                                                   289.1              17.0             209.0                0.2
Single premiums                                                   242.5               3.6             276.9                   -

                                                                  531.6              20.6             485.9                0.2     1,038.3

                                                                1,638.1              50.0             680.2            375.8       2,744.1

Financial year 2001

Individual insurance agreements
Annual premiums                                                   421.1              31.2               86.4           283.6
Single premiums                                                   584.9              32.2               10.8           133.2

                                                                1,006.0              63.4               97.2           416.8       1,583.4


Group contracts
Annual premiums                                                   281.8              14.2             239.1                0.2
Single premiums                                                   371.1               4.1             192.7                   -

                                                                  652.9              18.3             431.8                0.2     1,103.2

                                                                1,658.9              81.7             529.0            417.0       2,686.6




                                            BACK TO CONTENTS                  BACK        81      FORWARD
                                                                explanatory notes to the consolidated
                                                                  technical account life insurance


In millions of euros                                                               2002                2001




Breakdown of gross premiums by product by
geographical region

The Netherlands
Individual policies                                                 981.0                 1,012.8
Group policies                                                      809.9                   863.6
                                                                             1,790.9                1,876.4
Other EU countries
Individual policies                                                 696.8                   544.1
Group policies                                                      214.7                   222.4
                                                                              911.5                  766.5
Countries outside the EU
Individual policies                                                  28.0                    26.5
Group policies                                                       13.7                    17.2
                                                                                41.7                  43.7

                                                                             2,744.1                2,686.6
Other technical income net of reinsurance
This item includes the surrender of a large group
life contract of a D 47.4 million.                                              59.8                  20.1

Reinsurance income and expenditure                                              58.3                  42.0

Bonuses and rebates
Profit sharing                                                      287.7                    75.7
Depreciation interest rate discount                                -145.4                   -97.3
                                                                              142.3                   -21.6
The line profit sharing includes amounts paid
for excess interest clauses and other types of
bonuses.

Operating expenses
Acquisition costs                                                  -239.7                  -137.1
Changes in deferred acquisition cost                                -12.6                   -20.4
                                                                              -252.3                 -157.5
Management expenses, staff costs and depreci-
ated fixed assets                                                             -223.4                 -325.1
Commission and profit commissions received from
reinsurers                                                                       13.1                  25.6
                                                                              - 462.6                -457.0




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                                                            consolidated technical account
                                                                  general insurance
In millions of euros                                                                         2002               2001




Earned premiums net of reinsurance
Gross written premiums                                                      809.8                     751.8
Outward reinsurance premiums                                                -57.5                     -34.2

                                                                                        752.3                 717.6

Change in provision unearned premiums and
unexpired risks
Gross                                                                       -10.9                       0.8
Reinsurers’ share                                                            17.6                      -6.1

                                                                                             6.7                -5.3

                                                                                        759.0                 712.3

Allocated investment income                                                              57.0                  52.8

Claims incurred net of reinsurance
Gross claims                                                               - 481.6                   -436.9
Reinsurers’ share                                                             18.8                     16.7

                                                                                       - 462.8                -420.2
Change in provisions for claims
Gross                                                                       - 46.9                    -77.4
Reinsurers’ share                                                             - 9.4                    20.5

                                                                                         -56.3                 -56.9

                                                                                        -519.1                -477.1

Operating expenses                                                                      -307.8                -295.5

Result technical account general insurance                                               -10.9                  -7.5




                                         BACK TO CONTENTS   BACK TO HYPERLINK         BACK     83   FORWARD
                                                       notes to the consolidated technical
                                                           account general insurance
In millions of euros




Breakdown of technical account by classes of                    Personal       Motor-      Motor other   Marine   Fire and other   General      Other      Total
business 2002                                                  accident /      liability                               material    liability
                                                                sickness                                               damage



Gross written premiums                                          122.3          162.1          103.1       42.6         300.3        60.1        19.3      809.8
Earned premiums                                                 124.7          161.2            99.9      40.8         296.9        57.9        17.5      798.9
Investment income                                                11.5            18.6            1.9       2.1           12.4       10.0          0.5       57.0
Claims                                                          -72.8         -119.8          -73.5      -27.2        -171.6       -52.9       -10.7    -528.5
Operating expenses                                              -39.5          - 63.7         - 40.9     -14.2        -106.0       -26.4       -17.1    - 307.8
Reinsurance income / expenditure                                  0.6             1.9               -      1.1         - 31.3       - 0.6       - 2.2     - 30.5

Technical result                                                  24.5             -1.8       -12.6        2.6             0.4     -12.0       -12.0     -10.9

Geographical breakdown of premium income
The Netherlands                                                 118.4         131.1           101.4      42.3          273.3        60.1       17.5     744.1
Other EU countries                                                0.6          20.7                -         -          13.9            -       1.1      36.3
Countries outside the EU                                          3.3          10.3             1.7       0.3           13.1            -       0.7      29.4

                                                                122.3         162.1           103.1      42.6          300.3        60.1       19.3     809.8

Breakdown of technical account by classes of
business 2001

Gross written premiums                                          121.5          153.8          102.8       39.1         258.3         60.2      16.1      751.8
Earned premiums                                                 121.0          153.6          106.6       39.7         251.6         63.9      16.2      752.6
Investment income                                                10.5           16.1              3.7       2.1         10.5          9.3       0.6       52.8
Claims                                                          -96.2         -129.2          - 62.6     -23.1        -133.9       - 61.2      -8.1     -514.3
Operating expenses                                              -60.3          -50.9          -40.3      -13.3         -98.5       -27.1       -5.1     -295.5
Reinsurance income / expenditure                                 13.9            4.1            - 0.5     - 0.6        -20.3          2.5      -2.2       -3.1

Technical result                                                 -11.1             -6.3          6.9       4.8             9.4     -12.6         1.4       -7.5

Geographical breakdown of premium income
The Netherlands                                                 111.4         121.2            95.0      38.7          238.0        58.7       15.0     678.0
Other EU countries                                                0.2          25.5                -         -           8.0         1.5        0.4      35.6
Countries outside the EU                                          9.9           7.1             7.8       0.4           12.3            -       0.7      38.2

                                                                121.5         153.8           102.8      39.1          258.3        60.2       16.1     751.8
All amounts are gross; reinsurance income and
expenditure have been netted off.




                                         BACK TO CONTENTS                   BACK      84   FORWARD
                                                             notes to the consolidated technical
                                                                 account general insurance


In millions of euros                                                             2002               2001




Operating costs
Acquisition costs                                              -189.5                    -183.1
Changes in deferred acquisition costs                             5.5                       1.0
                                                                            -184.0                -182.1

Management expenses, staff costs and deprecia-
tion of fixed assets                                                        -132.1                -120.1
Commissions and profit sharing received from
reinsurers                                                                     8.3                   6.7
                                                                           - 307.8                -295.5

Commission costs have been included in operat-
ing costs.

Claim settling costs form part of gross claims
incurred.
Gross incurred claims                                          - 501.3                   -490.0
Claims handling costs                                            - 27.2                   -24.3
                                                                           - 528.5                -514.3




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                                                                                consolidated technical account
                                                                                       care insurance 1)
In millions of euros                                                                                               2002                 2001




Earned premiums net of reinsurance
Gross written premiums 2)                                                                       647.5                       633.7
Contribution to Public Health care Funds                                                        139.7                        74.2
                                                                                                              787.2                  707.9

Change in provisions unearned premiums and
current risks
Gross                                                                                             9.1                        17.9
Reinsurers’ share                                                                               -27.4                         0.1
                                                                                                               -18.3                  18.0

                                                                                                              768.9                  725.9

Allocated investment income                                                                                    26.1                   22.6

Income from services                                                                                           25.3                     3.0

Claims incurred net of reinsurance
Gross claims                                                                                   -744.4                      -670.2
Reinsurers’ share                                                                                 1.0                         1.8
                                                                                                              -743.4                 -668.4

Change in provisions for claims
Gross claims                                                                                        - 9.9                      6.7
Reinsurers’ share                                                                                   11.1                     - 0.1
                                                                                                                 1.2                    6.6
                                                                                                              -742.2                 -661.8

Operating expenses                                                                                             -79.5                  - 80.1

Other technical expenditure Care insurance                                                                            -                -1.6

Result technical account Care insurance                                                                        - 1.4                    8.0

1) This includes private medical insurance as well as the financial
flows from (standard package) policies on account of the Medical
Insurance (Access) Act (WTZ), which belong to the General Insurance
class of Personal Accident and Sickness.
2) The earned premiums have nearly entirely been realised in the
Netherlands.




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                                                        notes to the consolidated technical
                                                              account care insurance
In millions of euros                                                             2002                 2001




Operating costs
Acquisition cost                                                 - 37.4                   -29.7
Management expenses, staff costs and deprecia-
tion fixed assets                                                - 42.1                   -50.7
Commission and profit sharing received from
reinsurers                                                            -                     0.3
                                                                            -79.5                   -80.1

Commission costs have been included in operat-
ing costs.

Claim settling costs form part of gross claims
incurred.
Gross incurred claims                                           -741.1                   - 651.9
Claims handling costs                                            -13.2                     -11.6
                                                                           -754.3                  -663.5




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                                                consolidated profit and loss
                                                   mediation activities
In millions of euros                                                   2002              2001




Commission received                                                     3.2               2.4
Expenses                                                               -1.9              -2.9

Profit before taxation                                                 1.3               - 0.5




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                                                         consolidated profit and loss account
                                                                 banking operations
In millions of euros                                                                            2002                2001




Interest income                                                                255.7                      179.0
Interest expenditure                                                          -162.6                     -127.1
                                                                                            93.1                   51.9

Commission received                                                             57.9                       42.3
Commission paid                                                                -16.0                      -12.8
                                                                                            41.9                   29.5

Income from securities and participations                                          7.5                     11.5
Result from financial transactions                                                 4.0                      8.9
Other income                                                                       9.9                      8.3
                                                                                            21.4                   28.7

Total                                                                                      156.4                  110.1

Expenses                                                                       140.6                      103.2
Revaluation of receivables                                                      -2.6                        2.8
Other expenditure                                                               22.4                        6.1
Total                                                                                      160.4                  112.1

Operating result                                                                                - 4.0              -2.0
Interest on shareholders’ funds                                                                   5.9               5.1

Operating result before taxation                                                                 1.9                3.1




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                                                        explanatory notes to the consolidated
                                                             expenses and commission
In millions of euros                                                               2002                     2001




Expenses and commission
Salaries and wages                                                317.2                         286.3
Pension premium                                                    65.7                          34.6
Other social security contributions                                50.9                          39.5
Sundry expenses                                                   384.1                         389.8

                                                                               817.9                      750.2
Commissions                                                                    298.3                      287.4
                                                                             1,116.2                    1,037.6
Sundry expenses includes an amount of D 8.1
(D 9.1) million for rent of offices owned and
occupied. Commissions include commission paid
to the sales organisation. The pension charges
2002 include an amount of D 31.0 million for
improvement of the pension fund’s strength.
                                                                    TERUG             VOORUIT
The expenses accounted for in the annual accounts
are as follows
Claims                                                                          40.4                       35.9
Operating expenses
Technical account Life                                            462.6                         457.0
Technical account General insurance                               307.8                         295.5
Technical account Care insurance                                   79.5                          80.1
                                                                              849.9                      832.6

Investment expenses                                                             63.5                       54.1
Operating expenses Bank                                                        160.5                      112.1
Operating expenses Holding                                                          -                          -
Operating expenses mediation activities                                          1.9                        2.9
                                                                             1,116.2                    1,037.6

Staff numbers (converted to full-time
equivalents)
Delta Lloyd Verzekeringen                                         2,220                         2,307
OHRA Verzekeringen                                                  988                           966
Delta Lloyd Banking division                                      1,223                         1,311
Delta Lloyd Deutschland                                             924                           986
Other                                                             1,109                           936
                                                                              6,464                      6,506




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                                                                explanatory notes to the consolidated
                                                                     expenses and commission




Option rights to shares Aviva plc
981,478 (760,374) options over Aviva plc shares
were granted in 2002 to Delta Lloyd NV employ-
ees. 79,807 (55,186) of these were granted to
members of the Executive Board, the rest to
the management. A total number of 3,199,264
(2,217,786) options on Aviva plc shares had been
issued up to 31 December 2002.

Currently it is not possible for Delta Lloyd NV to
grant options to all employees.




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                                                                  remuneration of
                                                                  Executive Board
In thousands of euros                                                                2002                                2001




The amount expensed in the company in the
current financial year in respect of salaries of
managers and former managers, split between
members of the Supervisory Board and former
members of the Supervisory Board respectively
as intended by section 2:402 are D 1.6 (D 1.9)
million and D 0.2 (D 0.2) million respectively.
Loans have been granted to managers and
Supervisory Board members, of which D 0.2 (D 0.2)
million is still outstanding at 31 December 2002,
at an average interest rate of 5.7% (5.7%).

                                    1)
Salary and bonus Executive Board
N.W. Hoek
Salary                                                            465.6                             431.4
Bonus                                                             142.4                             184.0
                                                                                  608.0                              615.4
C.H. Tesselhoff
Salary                                                            392.0                             368.1
Bonus                                                             104.1                             184.0
                                                                                  496.1                              552.1
P.J.W.G. Kok 2)
Salary                                                            367.6                             317.7
Bonus                                                              91.1                              66.5
                                                                                  458.7                              384.2
J.E. Jansen 3)
Salary                                                                    -                         108.6
Bonus                                                                     -                         260.6
                                                                                          -                          369.2

                                                                               1,562.8                            1,920.9
                                                                   Age on      Number of            Increase         Accrued
Pension rights Executive Board
                                                                31/12/2002      years with     accrued rights   pension rights
                                                                              the Group on           in 2002    on 31/12/2002
                                                                               31/12/2002



N.W. Hoek                                                            46               5                20             156
C.H. Tesselhoff                                                      62              32                26             228
P.J.W.G. Kok                                                         48               3                17             105



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                                                                                             remuneration of
                                                                                             Executive Board


In thousands of euros




Mortgages and loans Executive Board                                            31/12/2002        Average       31/12/2001        Average
                                                                                             interest rate                   interest rate



C.H. Tesselhoff                                                                     241           5.7%              241           5.7%

Total                                                                               241           5.7%              241           5.7%

Option scheme Aviva plc
                                                                               Position on    Granted in     Exercised in     Position on    Exercise price   Remaining life     Price at the
                                                                               31/12/2001     the course     the course of    31/12/2002         (in pence)        (in years)   exercise date
                                                                                              of the year        the year                                                          (in pence)
Number of options
N.W. Hoek                                                                       91,766         30,901                    -   122,667                      -                5                -
C.H. Tesselhoff                                                                 50,713         26,079                    -    76,792                      -                5                -
P.J.W.G. Kok                                                                    16,923         22,827                    -    39,750                      -                5                -
J.E. Jansen                                                                    114,870               -                   -   114,870                      -                5                -
Total                                                                          274,272         79,807                    -   354,079

The issue of shares to the Board will only take
place if a total shareholder return (TSR) per-
formance condition has been met. TSR is the
return received on a shareholding measured by
reference to the change in the price of the shares
and the gross value of dividends received on
these shares. The performance period would
normally be three years, with the option to
extend it either to four or five years.

The Board may exercise their options at any time
up to the fifth anniversary of the granting date.
However, if the Board exercise their options
before the third anniversary of the granting
date and before the performance condition has
been met or waived, some of the shares will be
held by a nominee company.

1) The salaries are fixed for a period of two years.
2) Member of the Executive Board with effect from 1 January 2001.
3) Retired with effect from 1 April 2001.




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                                                           remuneration of
                                                          Supervisory Board
In thousands of euros                                                    2002              2001




Remuneration of Supervisory Board 1)
J.A.N. van Dijk
Remuneration                                               34.0                    34.0
Other                                                       7.7                     7.7
                                                                     41.7                 41.7

V.A.M. van der Burg
Remuneration                                               25.0                    25.0
Other                                                       5.9                     5.9
                                                                     30.9                 30.9

C.P.J. Appeldoorn
Remuneration                                               22.7                    22.7
Other                                                       2.7                     2.7
                                                                     25.4                 25.4

L.J.M. Berndsen 2)
Remuneration                                               11.3                    22.7
Other                                                       2.5                     5.0
                                                                     13.8                 27.7

H.C. Broeksma
Remuneration                                               22.7                    22.7
Other                                                       7.3                     7.3
                                                                     30.0                 30.0

R. Harvey
Remuneration                                                  -                       -
Other                                                         -                       -
                                                                            -                 -
R.H.P.W. Kottman
Remuneration                                               22.7                    22.7
Other                                                       5.0                     5.0
                                                                     27.7                 27.7

J. Oskam
Remuneration                                               22.7                    22.7
Other                                                       2.7                     2.7
                                                                     25.4                 25.4




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                                                                                   remuneration of
                                                                                  Supervisory Board


In thousands of euros                                                                     2002               2001




A.B. Wyand
Remuneration                                                                  -                        -
Other                                                                         -                        -


J.M.H. v. Engelshoven 3)
Remuneration                                                                  -                      5.6
Other                                                                         -                      2.6
                                                                                             -               8.2

                                                                                     194.9                 217.0
No bonuses, loans and mortgages were issued
to present and former Supervisory Board
members.

At the same time, pension rights and option
schemes for present and former Supervisory
Board memers do not exist.

1) Remunerations are determined for a two-year period.
2) Retired from the Board with effect from 17 June 2002.
3) Retired from the Board with effect from 1 April 2002.




                                                           BACK TO CONTENTS        BACK     95   FORWARD
                                                                               balance sheet of Delta Lloyd NV
                                                                                after appropriation of profits
In millions of euros                                                                                       31/12/2002             31/12/2001




ASSETS

Investments
Land and buildings P98                                                                             15.3                    15.3
Participations in group companies and other
participations P98                                                                           1,462.6                    2,258.0
Other financial investments P99                                                                293.7                      450.3
                                                                                                            1,771.6               2,723.6

Other receivables                                                                                            467.0                  225.7
Other assets
Tangible fixed assets P99                                                                                      35.9                   21.9

Prepayments and accrued income
Accrued interest and rent                                                                              -                    0.1
Other prepayments and accrued income                                                               17.6                    22.2
                                                                                                               17.6                   22.3

TOTAL                                                                                                       2,292.1               2,993.5

LIABILITIES

Shareholders funds 1)
                                               P100
Issued and fully paid up capital                                                               116.4                      116.4
Share premium account P101                                                                      44.5                       44.5
Participation reserve P101                                                                   1,267.2                    1,131.3
Revaluation reserve P101                                                                        90.0                      816.1
Other reserves P101                                                                            194.9                      245.6
                                                                                                            1,713.0               2,353.9

Perpetual subordinated convertible loan                                                                      172.4                  172.4
Provisions P102                                                                                                9.5                   19.2
Creditors P102                                                                                               369.3                  431.9
Accruals and deferred income                                                                                  27.9                   16.1

TOTAL                                                                                                       2,292.1               2,993.5

1) The capital at risk amounts to: B 1,885.4 (B 2,526.3).




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                                                          profit and loss account of
                                                               Delta Lloyd NV
In millions of euros                                                          2002               2001




Result participations after taxation                          173.6                    263.0
Other results after taxation                                  - 35.9                    34.1
Result after taxation                                                    137.7                 297.1

Allocation of profits
Transferred to participating reserve                          135.9                    163.3
Transferred to other reserves                                   1,8                    133.8
                                                                         137.7                 297.1




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                                                           notes to the balance sheet and profit
                                                            and loss account of Delta Lloyd NV
In millions of euros                                                                         31/12/2002              31/12/2001




General
The valuation of assets and liabilities and the
determination on the results are in compliance
with the principles set out on pages 46 to 52.

Investments
Land and buildings
Not used for own purposes                                                                        15.3                    15.3
The cost price of land and buildings at
31 December amounts to                                                                16.7                   16.7

Participations
Participations in group companies
Share capital                                                                   2,299.4                   2,392.2
Loans                                                                              45.4                     149.5
Receivables / payables                                                           -348.3                      65.5

                                                                                              1,996.5                2,607.2
Long-term loans payable                                                                        -545.8                 -364.0
Other participations                                                                             11.9                   14.8

                                                                                              1,462.6                2,258.0

Balance sheet value at 1 January                                                2,258.0                   2,144.5
Acquisitions                                                                       453.8                    169.4
Investments                                                                        173.6                    263.1
Movement receivables and loans payable                                           - 699.7                   -284.7
Other movements                                                                  -723.1                      -34.3

                                                                                              1,462.6                2,258.0

A term in excess of five years applies to long-term
loans payable.




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                                                                          notes to the balance sheet and profit
                                                                           and loss account of Delta Lloyd NV


In millions of euros                                                                       31/12/2002             31/12/2001




Other financial investments
Shares                                                                         293.0                      448.7
Loans                                                                               -                       0.4
Bonds                                                                            0.7                        1.2
                                                                                             293.7                   450.3

                                                                                            1,771.6                2,723.6


The cost price of the shares at 31 December
amounts to                                                                     379.0                      507.2

The market value of fixed interest securities at
31 December is                                                                         -                    0.6
for loans                                                                           0.9                     0.9
for bonds
At the balance sheet date there was, similar to
last year, no difference between redemption value
and cost price.

Other assets
Tangible fixed assets
Computer equipment                                                                  8.3                     5.8
Other tangible fixed assets                                                        27.6                    16.1
                                                                                               35.9                    21.9

The total value of the investments at year end
amounts to                                                                         79.3                    59.4
The accumulated value of the depreciation at year
end amounts to                                                                 -43.4                       37.5

Other receivables includes deferred taxation of
                                                                               392.3                      201.9
The nominal value is                                                           263.2                       25.7




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                                                                                 notes to the balance sheet and profit
                                                                                  and loss account of Delta Lloyd NV


In millions of euros                                                                              31/12/2002                                 31/12/2001




Shareholders’ funds
Issued and fully paid up share capital
The company’s authorised capital is divided into
5 million ordinary shares of D 9.08 each 1.5 million
convertible A preference shares of D 9.08 each and
170,000 B preference shares of D 453.78 each.
At the end of the year under review ordinary
shares as well as preference shares had been
issued and fully paid to a nominal amount of
D 116.4 (D 116.4) million.
                                                                    Authorised     Capital not   Issued / paid   Authorised   Capital not   Issued / paid
                                                                       capital         issued       up capital      capital       issued       up capital
Share capital


Ordinary shares                                                         45.4           15.4            30.0          45.4         15.4            30.0
Convertible preference shares A                                         13.6            4.3             9.3          13.6          4.3             9.3
Preference shares B                                                     77.1               -           77.1          77.1             -           77.1

Total shares                                                          136.1            19.7          116.4         136.1          19.7          116.4


From the date on which he ordinary shares of
Delta Lloyd NV are taken up in the listing of an
official stock exchange, the convertible prefer-
ence shares A may be converted on a one to one
basis into ordinary Delta Lloyd NV shares, along
with an amount of D 1,730.42 per convertible
share in cash.
This payment received will be offset, as much
as possible, against the perpetual subordinated
convertible loan.
The conversion price will be adjusted upon the
issue of ordinary shares in Delta Lloyd NV, in
the event of a restructuring of share capital in
Delta Lloyd NV or in the event of a share split of
the issued ordinary Delta Lloyd NV shares into
ordinary shares with a lower nominal value.




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                                                                        notes to the balance sheet and profit
                                                                         and loss account of Delta Lloyd NV


In millions of euros                                                                    31/12/2002              31/12/2001




Share premium account
Balance sheet value at 1 January                                                44.5                    44.5
Movements                                                                           -                       -
Balance sheet value at 31 December                                                          44.5                    44.5

Participating reserve
Balance brought forward                                                   1,131.3                     975.4
Effect of change in accounting policies                                          -                     -9.2
Corrected balance sheet value at 1 January                                1,131.3                     966.2
Addition to retained profits                                                135.9                     163.3
Other movements                                                                  -                      1.8
Balance carried forward                                                                  1,267.2                1,131.3

Revaluation reserves
Balance brought forward                                                      816.1                   1,554.0
Revaluation of investments                                                   - 84.5                   -272.0
Revaluation of participations                                              - 734.9                    -518.8
Other movements                                                                58.2                         -
Taxation related to these revaluations                                         35.1                     52.9
Balance carried forward                                                                     90.0                  816.1
Other movements include goodwill charged
in 1998 to the revaluation reserve which is
reallocated to other reserves.
D 131.5 (D 447.1) million of the revaluation
reserve at 31 December relates to unrealised
results.

Other reserves
Balance brought forward                                                     245.6                     197.1
Allocation from profits                                                        1.8                    133.8
Dividend payments from the reserves                                          - 0.2                    -82.0
Other movements                                                             -52.3                       -3,3
Balance carried forward                                                                   194.9                   245.6


Total shareholders’ funds                                                                1,713.0                2,353.9




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                                                                             notes to the balance sheet and profit
                                                                              and loss account of Delta Lloyd NV


In millions of euros                                                                           31/12/2002              31/12/2001




Provisions
Provision for sundry purposes
Balance sheet value at 1 January                                                      19.2                     29.3
Appropriations                                                                        - 9.7                   -19.6
Additions                                                                                  -                   10.3
Release                                                                                    -                    -0.8
                                                                                                      9.5                  19.2
D 9.5 (D 9.7) million of the provisions are of a
short-term nature.

Liabilities
Dividend                                                                            0.2                       82.0
Corporate taxation                                                                325.8                      302.4
Other taxation and social security premiums                                         1.3                        1.0
Other                                                                              42.0                       46.5
                                                                                                 369.3                   431.9

Result participating interests after tax
D 173.6 (D 261.8) million of the result from
participating interests relates to intercompany
transactions and D nil (D 1.2) million with other
participating interests.

Personnel costs
Salaries and wages                                                                    24.6                    11.0
Pension premium                                                                       12.9                     1.9
Other social security contributions                                                    2.8                     1.5
                                                                                                   40.3                    14.4

Staff numbers on a full-time basis at
31 December
Working for operational units                                                         114                       92
Working for group activities                                                          349                      302
                                                                                                      463                   394




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                                                                  notes to the balance sheet and profit
                                                                   and loss account of Delta Lloyd NV




Off balance sheet commitments and contingent
liabilities
Off balance sheet commitments and contingent
liabilities amount to D 112.5 (D 82.1) million at
the end of 2002.
These are included in the amount of D 765.3
(D 702.8) million mentioned on page 72.

Delta Lloyd NV has given a guarantee of D 98
million (D 110 million) at the balance sheet date,
to cover the liabilities from discounts granted to
one of its subsidiary companies. For this purpose, a
lien has been provided as collateral on a mort-
gage portfolio of which Delta Lloyd NV has the
economic ownership. The given guarantee will
reduce annually by D 12 million and will end at
31 December 2010.

As per section 2:403 subsection 1, paragraph
f of the Dutch Civil Code, the company will be
held severally liable relating to certain interests
in insurance and banking participations.




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BACK TO CONTENTS   BACK   105 FORWARD
                                                                                            other details
Appropriation of profits and dividend



STATUTORY PROVISION ABOUT THE APPRO-                   Appropriation of profits                              Events after the balance sheet date
PRIATION OF PROFITS                                    If the annual accounts are approved, the profit of    In Februari 2003 agreement was reached with ABN
                                                       s 137.7 million will be allocated to the general      AMRO Bank N.V. to take over a majority interest in
Article 35, relating to the appropriation of profits, reserves.                                              its insurance activities with the aim to start a joint
if appropriate here, specifies that firstly a dividend                                                       venture. The take-over involves a goodwill sum of
of 2.5% on the fully paid-up and issued preference Dividend                                                  about s 164 million. A subordinated loan of s 262.5
shares A should be added to the dividend reserve A In 2002, s 0.2 (s 82.0) million dividend will be al-      million will be received from Aviva plc for financing
(and if applicable, to the dividend reserve A). This located to the reserves in accordance with article      this take-over.
percentage is increased annually by one percentage 35 paragraph 9 of the Articles of Association. This is
point of the last applicable percentage with effect s nil (s 23.71) per ordinary share of s 9.08 nominal,
from the financial year 2000 up to and including s nil (s 20.79) per preference share B of nominal
2009.                                                  s 453.78 and s 0.23 (s 0.23) per preference share A
                                                       of s 9.08 nominal.
The profit which has not been added to the divi-
dend reserve A, is subject to reservations as deter-
mined by the Executive Board and approved by the
Supervisory Board.

From the profit, after creation of such reserves, a
dividend is paid which equals a rate calculated on
the nominal amount of all issued preference shares
B. This rate is related to the average effective return
on all Dutch Government bonds with a weighted
remaining term of five years.

The remaining profit is distributed to the holders of
ordinary shares proportionately.




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                                                                                                other details

Auditors’ report



Introduction                                         Opinion
We have audited the accompanying 2002 finan-         In our opinion, the financial statements give a
cial statements of Delta Lloyd NV Amsterdam.         true and fair view of the financial position of the
                                                     company as of December 31 2002 and of the re-
These financial statements are the responsibility    sult for the year then ended in accordance with
of the company’s management.                         accounting principles generally accepted in the
Our responsibility is to express an opinion on       Netherlands and complying with the financial
these financial statements based on our audit.       reporting requirement included in Part 9, Book 2
                                                     of the Dutch Civil Code.

Scope
We conducted our audit in accordance with au-
diting standards generally accepted in the Neth-     Amsterdam, February 21 2003
erlands. These standards require that we plan and
perform the audit to obtain reasonable assurance     PricewaterhouseCoopers Accountants N.V.
on whether the financial statements are free of
material misstatement. An audit includes exam-
ining, on a test basis, evidence supporting the
amounts and disclosures in the financial state-
ments. An audit also includes an assessment of
the accounting principles used and significant
estimates made by management, as well as an
evaluation of the overall financial statement pre-
sentation. We believe that our audit provides a
reasonable basis for our opinion.




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                                                                 other details
Outline of major group companies



Aviva plc in London is the ultimate holder of 100% of                      CARE
the ordinary shares of Delta Lloyd NV. In addition,                        Delta Lloyd Zorgverzekering NV (Den Haag)
Stichting Nuts OHRA holds preference shares.                               OHRA Ziektekostenverzekeringen NV (Arnhem)


The major group companies in which Delta Lloyd                             BANKING
NV has an interest are (100% unless otherwise                              Delta Lloyd Bank NV (Amsterdam)
stated):                                                                   Delta Lloyd Securities NV (Antwerpen)
                                                                           OHRA Hypotheken Fonds NV (Arnhem)
HOLDING                                                                    Delta Lloyd Bank NV, Belgium (Turnhout)
Delta Lloyd Verzekeringen BV (Amsterdam)                                   Bank Nagelmackers 1747 NV (99.6%) (Brussel)
NUTS OHRA Beheer BV (Arnhem)                                               Gries & Heissel Bankiers AG (89.13%) (Berlijn)
Delta Lloyd Bankengroep NV (Amsterdam)
Delta Lloyd Deutschland AG (Wiesbaden)                                     A complete list of subsidiaries as specified
Delta Lloyd België NV (Elsene-Brussel)                                     in section 2:379 and 2:414 of the Dutch Civil
Delta Lloyd Antillen NV (Curaçao)                                          Code, is registered at the Registry of Business
                                                                           Names in Amsterdam. In accordance with the
                                                                           provision in section 2:403 paragraph 1 of the
LIFE                                                                       Dutch Civil Code, not all requirements under
Delta Lloyd Levensverzekering NV (Amsterdam)                               Title 9 of Book 2 of the Dutch Civil Code have
OHRA Levensverzekeringen NV (Arnhem)                                       been met in respect of a number of group
Berlinische Lebensversicherung AG (99.52%)                                 companies.
(Wiesbaden)
Delta Lloyd Levensherverzekeringsmaatschappij BV
(Amsterdam)
NV Nationaal Spaarfonds (The Hague)
Ennia Caribe Leven NV (80%) (Curaçao)
Delta Lloyd Vastgoed Fonds NV (Amsterdam)
Delta Lloyd Life NV (Elsene-Brussel)


GENERAL INSURANCE
Delta Lloyd Schadeverzekering NV (Amsterdam)
OHRA Schadeverzekeringen NV (Arnhem)
Ennia Caribe Schade NV (80%) (Curaçao)
B. Franco Mendes BV (Amsterdam)
Delta Lloyd Schadeverzekering Volmachtbedrijf BV
(Amsterdam)
O.W.J. Schlencker Assuradeuren BV (Amsterdam)
Praevenio Technische Verzekeringen BV
(Amsterdam)
OHRA België NV (Sint-Pieters-Woluwe-Brussel)


                                              BACK TO CONTENTS    BACK   108 FORWARD
                                        Amsterdam, 21 February 2003




                                        SUPERVISORY BOARD
                                        J.A.N. (Jacques) van Dijk, chairman
                                        V.A.M. (Vincent) van der Burg, deputy chairman
                                        C.P.J. (Peter) Appeldoorn
                                        L.J.M. (Leo) Berndsen (until 17 June 2002)
                                        H.C. (Caspar) Broeksma
                                        R. (Richard) Harvey
                                        R.H.P.W. (René) Kottman
                                        J. (Jan) Oskam
                                        A.B. (Tony) Wyand

                                        EXECUTIVE BOARD
                                        N.W. (Niek) Hoek, chairman
                                        R.L.M. (Rob) Hillebrand (with effect from 1 January 2003)
                                        P.J.W.G. (Peter) Kok
                                        P.K. (Paul) Medendorp (with effect from 1 January 2003)
                                        C.H. (Chris) Tesselhoff (until 1 April 2003)



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                                                              Key figures 1993-2002
In millions of euros                                              2002          2001      2000     1999 1)     1998 2)     1997 3)     1996 3)     1995 3)     1994 3)      1993




Revenue
Gross premium income Life inssurance                            2,744      2,686        2,283     1,941       1,705       1,067         909         821         904         882
Gross premium income General insurance                            810        752          774       579         529         490         492         473         443         401
Gross premium income Care insurance                               787        708          685       139            -           -           -           -           -           -
Total premium income                                            4,341      4,146        3,742     2,659       2,234       1,557       1,401       1,294       1,347       1,283
Other activities                                                  124         76          130        39          28          13          11           8           8           8
Investment income 4)                                            1,021      1,400        1,796     1,842       1,425       1,067         938         903         800         758
                                                                5,486      5,622        5,668     4,540       3,687       2,637       2,350       2,205       2,155       2,049

Result before taxation 5)
Life                                                             152            291       313      250         223         187         165         138         127         109
General                                                           13             19        -9        3           8          34          27          22          17          -4
Care                                                              12             23        12         -           -           -           -           -           -           -
Banking and intermediary activities                                2              3        22        9           8           6           6           4           2           3
Holding                                                          -21             31        12       30          42          56          25          17           8          15
                                                                 158            367       350      292         281         283         223         181         154         123

Extraordinary result                                                -              -         -        -           -         -4         -22            -        - 34         -25
                                                                 158            367       350      292         281         279         201         181         120           98

Taxation                                                         -20            - 68      - 65      -52         -61        -70         - 52        - 47         - 30        -20
Result after taxation                                            138            299       285      240         220         209         149         134            90         78

Group capital                                                   1,713      2,354        2,878     2,360       1,779       1,994       1,686       1,345       1,158       1,115

Balance sheet total                                            32,781     34,239       30,992    28,753      21,261      15,752      14,285      13,231      12,341      11,632

Figures per share of D 9.08 nominal (ordinary)
and D 453.78 and D 9.08 nominal (preference) in
euros 6)
Dividend (ordinary)                                                  -     23.71        27.04     29.46       30.83       30.44       22.57       20.30       13.21       12.91
Dividend (preference B D 453.78)                                     -     20.79        20.79     20.79       20.79            -           -           -           -           -
Dividend (preference A D 9.08)                                   0.23       0.23         0.23      0.23            -           -           -           -           -           -
Profit (ordinary)                                               40.58      88.89        84.95     71.56       68.02       64.12       45.10       40.50       27.25       23.47
Profit (preference B D 453.78)                                  20.79      20.79        20.79     20.79       20.79            -           -           -           -           -
Profit (preference A D 9.08)                                     0.23       0.23         0.23      0.23            -           -           -           -           -           -

Number of staff on a full-time basis at
31 December                                                     6,464      6,506        5,639     5,636       3,452       2,319       2,284       2,281       2,396       2,644




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                   Key figures 1993-2002


                                              COMMENTS TO KEY FIGURES 1993-2002
                                              1) Including NUTS OHRA Beheer BV (from 1 October 1999).
                                              2) Including Berlinische Lebensversicherung AG.
                                              3) The provision in Chapter 15 of Title 9 of Book 2 of the Dutch Civil
                                              Code have been observed with effect from the financial year 1995. All
                                              effects have been incorporated in the annual figures with effect from
                                              1994. Recalculation of 1993 and earlier years has not been made for
                                              practical reasons.
                                              4) Including indirect return for the years from 1997.
                                              5) The results for Life insurance, General insurance and Care
                                              insurance concern the result technical accounts, as well as the share
                                              in the non-technical account.
                                              6) The issued and fully paid share capital was extended by 1,026,087
                                              preference shares A. For reasons of comparison the profit for an
                                              ordinary share, has been adjusted for 1998.




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                                                                                             curriculum vitae
                                                                                            Supervisory Board


J.A.N. van Dijk                                           H.C. Broeksma                                             R.H.P.W. Kottman
Chairman                                                  POSITION                                                  POSITION
POSITION                                                  Retired                                                   Chairman Executive Board Ballast Nedam NV
Retired                                                   FORMER POSITION                                           OTHER POSITIONS
FORMER POSITION                                           Member of the Group Management of Koninklijke             Hermeta Group BV
Member of the Executive Board of Sara Lee/DE NV           Wessanen NV                                               Stichting Exploitatie Nederlandse Staatsloterij
Senior Vice President Sara Lee Corporation                OTHER POSITIONS                                           OTHER FUNCTIONS
OTHER POSITIONS                                           Ballast Nedam NV                                          Member Raad van Verkeer en Waterstaat
Koninklijke Wessanen NV                                   Koninklijke Auping BV                                     Member of the Academy of Management USA
CV Verenigde Bloemenveilingen Aalsmeer (president)        Blauwhoed Holding BV                                      APPOINTED
Transavia Airlines                                        Moving People BV                                          1999
OTHER FUNCTIONS                                           OTHER FUNCTIONS                                           NATIONALITY
Chairman of the Supervisory Board of Utrecht University   Stichting Rijksmuseum Fonds (chairman)                    Dutch
APPOINTED                                                 Stichting Het Parool (treasurer)
1993                                                      Curatorium Postdoctorale Controllersopleiding U.v.A       J. Oskam
NATIONALITY                                               APPOINTED                                                 POSITION
Dutch                                                     1993                                                      Process Operator in Uniqema (ICI) Gouda
                                                          NATIONALITY                                               OTHER FUNCTIONS
C.P.J. Appeldoorn                                         Dutch                                                     Union Official FNV Bondgenoten/co-ordinator FNV
POSITION                                                                                                            Zoetermeer
Retired                                                   V.A.M. van der Burg                                       APPOINTED
FORMER POSITION                                           Substitute chairman                                       1999
Chairman of the Executive Board of Wegener NV             POSITION                                                  NATIONALITY
OTHER POSITIONS                                           Independent Legal Adviser in Zeist                        Dutch
Terberg Leasing BV                                        OTHER POSITIONS
APPOINTED                                                 Nestlé Nederland BV                                       A.B. Wyand
1999                                                      OTHER FUNCTIONS                                           POSITION
NATIONALITY                                               Vice-chairman of Het Utrechtse Archief                    Group Executive Director Aviva plc
Dutch                                                     Member of the Supervisory Board of the Centraal Bureau    OTHER NON-EXECUTIVE POSITIONS
                                                          voor Genealogie in The Hague                              Subsidiaries of Aviva plc
L.J.M. Berndsen (until 17 June 2002)                      Permanent contributor to magazine Stichting &             Unicredito Italiano SpA
POSITION                                                  Vereniging                                                Grosvenor Group Holdings Ltd
Retired                                                   Member general Board Pension Fund of the Dutch dioceses   Société Générale
FORMER POSITION                                           APPOINTED                                                 APPOINTED
Chairman Executive Board Koninklijke Nedlloyd NV          1973                                                      1988
OTHER POSITIONS                                           NATIONALITY                                               NATIONALITY
Koninklijke Nedlloyd NV                                   Dutch                                                     British
Co-chairman P&O Nedlloyd Ltd
Corus Nederland BV                                        R. Harvey
Nederlandse Staatsloterij                                 POSITION
Océ NV                                                    Group Chief Executive Aviva plc
TBI Holdings BV                                           OTHER FUNCTIONS
OTHER FUNCTIONS                                           Board member Association of British Insurers
Member of the Board Stichting Preferente Aandelen         Chairman British Insurers ‘European Committee’
Koninklijke Nedschroef Holding NV                         Member Financial Services Authority’s Practitioner
APPOINTED                                                 Forum
1999                                                      Member of CBI ’s Governing Council
NATIONALITY                                               APPOINTED
Dutch                                                     2000
                                                          NATIONALITY
                                                          British



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                                                                                                          Delta Lloyd Group
                                                                                                           personal details


DELTA LLOYD GROUP                                                P. (Patrick) Driebeek, Legal                                           MANAGEMENT OHRA INSURANCE
                                                                 H.W. (Henk) Janssen, Group Finance & Control
SUPERVISORY BOARD                                                G. (Gerard) van Loon, Procurement                                      OHRA INSURANCE
J.A.N. (Jacques) van Dijk, chairman                              B.A. (Ben) Sinnige, Group Human Resources Management                   R.L.M. (Rob) Hillebrand, chairman (until 31 December 2002)
V.A.M. (Vincent) van der Burg, deputy chairman                   G.L. (Gerd) Tjerkstra, Group ICT                                       F. (Frank) Blankers, chairman (with effect from 1 January 2003)
C.P.J. (Peter) Appeldoorn                                        B. (Boudewijn) van der Woerd, Group Audit & Consultancy                J.G. (Jos) Peeters, Life and Care
L.J.M. (Leo) Berndsen (until 17 June 2002)                                                                                              T.J.M. (Theo) van Brunschot, Care
H.C. (Caspar) Broeksma                                           GENERAL INSURANCE SERVICE CENTRE                                       M. (Martin) Duvivier, OHRA Income and Absence
R. (Richard) Harvey                                              J.W. (Hanneke) Jukema                                                  N.R. (Nico) Francken, ICT
R.H.P.W. (René) Kottman                                                                                                                 P.A. (Peter) Knoeff, Finance & Control
J. (Jan) Oskam
A.B. (Tony) Wyand                                                MANAGEMENT DELTA LLOYD INSURANCE                                       NATIONAAL SPAARFONDS
                                                                                                                                        A.C.M. (Antoine) van Bijsterveldt
EXECUTIVE BOARD                                                  DELTA LLOYD INSURANCE                                                  A.J.H. (Twan) Sprenkels
N.W. (Niek) Hoek, chairman                                       H.H. (Henk) Raué, chairman
R.L.M. (Rob) Hillebrand (with effect from 1 January 2003)        F. (Frank) Elion, Marketing & Sales
P.J.W.G. (Peter) Kok                                             M.M. (Maarten) de Groof, Life                                          MANAGEMENT DELTA LLOYD BANKING
P.K. (Paul) Medendorp (with effect from 1 January 2003)          T.J.A. (Theo) Krekel, Finance
C.H. (Chris) Tesselhoff (until 1 April 2003)                     F.L. (Freek) van Leeuwen, Care (until 31 December 2002)                DELTA LLOYD BANKING
                                                                 H. (Henk) Otten, Personnel                                             L. (Leo) Keemink, chairman
SECRETARY                                                        L.M. (Leon) van Riet, Information & E-Business Services                E.A.A. (Emiel) Roozen
E.M. (Elise) Stevens-Fokkens                                     J.P.M. (Jolanda) Tijhuis, General Insurance                            H.H. (Herman Hein) Roozen
                                                                 I.A. (Ingrid) Visscher, Care (with effect from 1 January 2003)         P.A.J.M. (Piet) Verbrugge
EXTERNAL AUDITORS                                                                                                                       G.J.L.M.J.G. (Geoffroy) Vermeire
PricewaterhouseCoopers Accountants N.V.                          DELTA LLOYD LIFE
                                                                 M.M. (Maarten) de Groof, chairman                                      DELTA LLOYD BANK NETHERLANDS
CENTRAL WORKS COUNCIL                                            T.O. (Olav) Cuiper                                                     L. (Leo) Keemink, chairman
J.M.A.C. (Hans) van Oers, chairman                               A.M.P.J. (Martin) Heuvelmans                                           E.A.A. (Emiel) Roozen
J. (Jan) Beunk                                                                                                                          H.H. (Herman Hein) Roozen
H. (Henk) Biemans                                                DELTA LLOYD GENERAL INSURANCE
K. (Karel) Donker                                                J.P.M. (Jolanda) Tijhuis, chairman                                     OHRA BANK
R.C.G. (Ruud) de Groot                                           J.F.Th. (Jan) Boogaard                                                 F.J. (Frank) Werkhoven
J. (Hans) Hartman                                                J.E. (Jan) Jonker
W.J. (Willem Jan) Kinds                                                                                                                 RETAIL & MORTGAGES
M. (Marc) Kluft                                                  DELTA LLOYD CARE                                                       P. (Paul) van Weerdenburg
L.A. (Leo) Piek                                                  F.L. (Freek) van Leeuwen, chairman (until 31 December 2002)
L.J.M. (Ludo) Rothuizen                                          I.A. (Ingrid) Visscher, chairman (with effect from 1 January 2003)     PRIVATE BANKING
D.A. (Digna) Schoonenboom                                        H. (Hugo) Broekman (with effect from 1 January 2003)                   B. (Bert) Mets
P.M.B. (Paul) Spoelstra                                          L.M.H. (Loe) Koekelkoren
C. (Conny) Stinnissen                                                                                                                   DELTA LLOYD BANK BELGIUM
F.G. (Ferenc) Vereb                                              MARKETING & SALES                                                      P.A.J.M. (Piet) Verbrugge, chairman
G.G.L. (Guus) Verheul                                            F. (Frank) Elion, chairman                                             G.C.H. (Geert) Ceuppens
                                                                 E. (Erica) Blom-Groenink                                               A.J. (Aymon) Detroch
CENTRAL WORKS COUNCIL SECRETARIAL                                J.M.A. (Jim) de Boer                                                   J.C.A.M. (Johan) Lyssens
D.A.C.J. (Dominique) Fragu
M.A. (Ria) de Kruijf-Weisscher                                   FINANCE, PLANNING EN CONTROL                                           DELTA LLOYD SECURITIES BELGIUM
                                                                 T.J.A. (Theo) Krekel                                                   G.J.L.M.J.G. (Geoffroy) Vermeire, chairman
SPECIALIST SUPPORT UNIT                                          R. (Rob) van Mazijk                                                    G.A.L. (Geert) van de Walle
D.S. (David) Brilleslijper, Corporate Communication
M.R. (Miriam) van Dongen, Corporate Development                  PRAEVENIO TECHNICAL INSURANCE
                                                                 W. (Wilko) Emmens




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                                                                                                                         Delta Lloyd Group
                                                                                                                             personalia




BANK NAGELMACKERS 1747 BELGIUM                                         MANAGEMENT ENNIA CARIBE
G.J.L.M.J.G. (Geoffroy) Vermeire, chairman
F.J. (Frank) Bruynseels                                                ENNIA CARIBE
P.B.M. (Peter) de Proft                                                H. (Hans) Groot, chairman (with effect from 21 November 2002)
                                                                       A.J. (Jaap) Willemse, chairman (until 21 November 2002)
BANQUE NAGELMACKERS 1747 LUXEMBOURG                                    M.A.G. (André) van der Windt
A.L.J.A. (André) Arnold, chairman
A. (André) Marchiori                                                   ENNIA LIFE
                                                                       M.A.G. (André) van der Windt

MANAGEMENT DELTA LLOYD GERMANY                                         ENNIA GENERAL INSURANCE
                                                                       H. (Hans) Groot
DELTA LLOYD DEUTSCHLAND
P.K. (Paul) Medendorp, chairman (until 31 December 2002)               AMERSFOORTSE ANTILLEN
J.F. (Frans) van de Veer, chairman (with effect from 1 January 2003)   H. (Hans) Groot
G. (Gerd) Matthiensen
A.C. (Ad) Rijken                                                       OHRA MORTGAGE BANK
V. (Veronika) Simons                                                   R. (Ronny) Wijngaarde



MANAGEMENT DELTA LLOYD BELGIUM

DELTA LLOYD LIFE
L. (Luc) Vancamp, chairman
C. (Caspar) van Haaften
A. (Arnold) Tierolf



MANAGEMENT DELTA LLOYD ASSET MANAGEMENT

DELTA LLOYD ASSET MANAGEMENT
J.P. (Jaco) Aardoom, chairman
A.H. (Alex) Otto

OHRA ASSET MANAGEMENT
J.P. (Jaco) Aardoom, chairman
A.H. (Alex) Otto



MANAGEMENT DELTA LLOYD PROPERTY

DELTA LLOYD PROPERTY
C.F. (Cees) Frankhuisen




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                                                                                                        Delta Lloyd Group
                                                                                                            addresses


DELTA LLOYD GROUP                                              B. FRANCO MENDES                                               BANK NAGELMACKERS 1747                                         DELTA LLOYD LUXEMBURG
                                                               P.O. Box 1000, 1000 BA Amsterdam, The Netherlands              Sterrenkundelaan 23, 1210, Brussel, Belgium                    P.O. Box 1375, L-1013, Luxembourg, Luxembourg
DELTA LLOYD GROUP                                              Strawinskylaan 10, 1077 XZ, Amsterdam, The Netherlands         T +32 (0)2 229 76 00, F +32 (0)2 229 79 49                     T +352 402 82 03 50, F +352 402 82 03 51
P.O. Box 1000, 1000 BA, Amsterdam, The Netherlands             T +31 (0)20 546 22 30, F +31 (0)20 546 22 35                   www.nagelmackers.be
Amstelplein 6, 1096 BC, Amsterdam, The Netherlands
T +31 (0)20 594 91 11, F +31 (0)20 693 79 68                                                                                  BANK NAGELMACKERS 1747 (LUXEMBOURG)                            GERMANY
www.deltalloydgroep.com                                        OHRA INSURANCE                                                 124, Boulevard de la Pétrusse, L-2330 Luxembourg, Luxembourg
                                                                                                                              T +352 499 98 81, F +352 499 988 40                            DELTA LLOYD DEUTSCHLAND
                                                               OHRA                                                                                                                          P.O. Box 1520, 65005, Wiesbaden, Germany
DELTA LLOYD INSURANCE                                          P.O. Box 40000, 6803 GA, Arnhem, The Netherlands                                                                              Wittelbacherstrasse 1, 65189 Wiesbaden, Germany
                                                               Rijksweg West 2, 6842 BD, Arnhem, The Netherlands              DELTA LLOYD ASSET MANAGEMENT                                   T +49 (0)180 202 82 02, F +49 (0)611 773 26 64
DELTA LLOYD INSURANCE                                          T +31 (0)26 400 99 11, F +31 (0)26 400 94 04                                                                                  www.deltalloyd.de
P.O. Box 1000, 1000 BA, Amsterdam, The Netherlands             www.ohra.nl                                                    DELTA LLOYD ASSET MANAGEMENT
Spaklerweg 4, 1096 BA, Amsterdam, The Netherlands                                                                             P.O. Box 1000, 1000 BA, Amsterdam, The Netherlands             PRIVATBANK GRIES & HEISSEL BANKIERS
T +31 (0)20 594 91 11, F +31 (0)20 693 79 68                   NATIONAAL SPAARFONDS, WAALWIJK                                 Amstelplein 6, 1096 BC, Amsterdam, The Netherlands             Lynarstrasse 22, 14193, Berlin, Germany
www.deltalloyd.nl                                              P.O. Box 10, 5140 BA, Waalwijk, The Netherlands                T +31 (0)20 594 34 33, F +31 (0)20 594 27 06                   T +49 (0)30 896 90 2-0, F + 49 (0)30 896 90 22
                                                               Grotestraat 341, 5142 CA, Waalwijk, The Netherlands            www.koerslijn.nl                                               www.guh.de
DELTA LLOYD LIFE                                               T +31 (0)416 68 12 34, F +31 (0)416 34 27 15
P.O. Box 1000, 1000 BA, Amsterdam, The Netherlands             www.nationaalspaarfonds.nl                                     OHRA ASSET MANAGEMENT                                          BERLINISCHE LEBENSVERSICHERUNG
Spaklerweg 4, 1096 BA, Amsterdam, The Netherlands                                                                             P.O. Box 40000, 6803 GA, Arnhem, The Netherlands               P.O. Box 1520, 65005, Wiesbadenm, Germany
T +31 (0)20 594 91 11, F +31 (0)20 693 79 68                   NATIONAAL SPAARFONDS, RIJSWIJK                                 Rijksweg West 2, 6842 BD, Arnhem, The Netherlands              Wittelbacherstrasse 1, 65189 Wiesbaden, Germany
www.deltalloyd.nl                                              P.O. Box 1210, 2280 CE, Rijswijk, The Netherlands              T +31 (0)26 400 99 11, F +31 (0)26 400 94 04                   T +49 (0)180 202 82 02, F +49 (0)611 773 26 64
                                                               J.C. van Markenlaan 3, 2285 VL, Rijswijk, The Netherlands      www.fondsvisie.nl                                              www.deltalloyd.de
DELTA LLOYD GENERAL INSURANCE                                  T +31 (0)70 372 86 00, F +31 (0)70 372 86 01
P.O. Box 1000, 1000 BA, Amsterdam, The Netherlands             www.nationaalspaarfonds.nl
Spaklerweg 4, 1096 BA, Amsterdam, The Netherlands                                                                             DELTA LLOYD PROPERTY                                           NETHERLANDS ANTILLES
T +31 (0)20 594 91 11, F +31 (0)20 693 79 68
www.deltalloyd.nl                                              DELTA LLOYD BANKING GROUP                                      DELTA LLOYD VASTGOED                                           ENNIA CARIBE
                                                                                                                              P.O. Box 1000, 1000 BA, Amsterdam, The Netherlands             P.O. Box 581, Willemstad, Curaçao (Netherlands Antilles)
DELTA LLOYD CARE                                               DELTA LLOYD BANK                                               Amstelplein 6, 1096 BC, Amsterdam, The Netherlands             T +599 (0)9 434 38 00, F +599 (0)9 434 38 73
P.O. Box 29666, 2502 LR, Den Haag, The Netherlands             P.O. Box 231, 1000 AE, Amsterdam, The Netherlands              T +31 (0)20 594 35 01, F +31 (0)20 594 38 10                   www.ennia.com
Stadhoudersplantsoen 214, 2517 SK, Den Haag, The Netherlands   Joan Muyskenweg 4, 1096 CJ, Amsterdam, The Netherlands         www.deltalloydvastgoed.nl
(From 2 June 2203) J. Westerdijkplein 1, 2521 EN Den Haag      T +31 (0)20 597 62 08, F +31 (0)20 597 63 08
The Netherlands                                                www.deltalloyd.nl
T +31 (0)70 310 09 11, F +31 (0)70 310 07 04                                                                                  BELGIUM/LUXEMBOURG
www.deltalloyd.nl                                              OHRA BANK
                                                               P.O. Box 40000, 6803 GA, Arnhem, The Netherlands               DELTA LLOYD LIFE
NUTS ZIEKENFONDS                                               Rijksweg West 2, 6842 BD, Arnhem, The Netherlands              Pleinlaan 15, 1050, Brussel, Belgium
P.O. Box 29666, 2502 LR, Den Haag, The Netherlands             T +31 (0)26 400 99 11, F +31 (0)26 400 94 04                   T +32 (0)2 650 77 01, F +32 (0)2 650 77 91
Stadhoudersplantsoen 214, 2517 SK Den Haag, The Netherlands    www.ohra.nl                                                    www.deltalloydlife.be
(From 2 June 2203) J. Westerdijkplein 1, 2521 EN Den Haag
The Netherlands                                                DELTA LLOYD SECURITIES NV                                      OHRA BELGIUM
T +31 (0)70 310 09 11, F +31 (0)70 310 07 04                   Kipdorp 10-12, 2000 Antwerpen, Belgium                         Woluwelaan 2, 1150, Brussel, Belgium
www.nuts.nl                                                    T +32 (0)3 204 77 77, F +32 (0)3 204 77 78                     T +32 (0)2 244 44 11, F +32 (0)2 244 44 99
                                                               www.dlsecurities.be                                            Koningin Astridlaan 185, 9000, Gent, Belgium
PRAEVENIO TECHNISCHE VERZEKERINGEN                                                                                            T +32 (0)9 243 49 00, F +32 (0)9 243 49 99
P.O. Box 71221, 1008 BE, Amsterdam, The Netherlands            DELTA LLOYD BANK BELGIUM                                       www.deltalloyd.be
Weerdestein 206, 1083 GN, Amsterdam, The Netherlands           Sterrenkundelaan 34, 1210, Brussel, Belgium
T +31 (0)20 546 14 00, F +31 (0)20 646 24 03                   T +32 (0)2 229 76 00, F +32 (0)2 229 79 99
www.praevenio.nl                                               www.deltalloydbank.be




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                   colophon


                            The 2002 annual report of Delta Lloyd Group has been developed
                            and published under the authority of Delta Lloyd Group, Corporate
                            Communication, Amstelplein 6, 1096 BC Amsterdam, the Netherlands.

                            The annual report is specifically designed for internet and computer use;
                            it is easy to read, download or print at www.deltalloydgroep.com.

                            CONCEPT, EDITORIAL AND PRODUCTION
                            Proof Communication, Amsterdam
                            www.proof.nl

                            ART DIRECTION AND DESIGN
                            solar_initiative, Amsterdam
                            www.solar.nl

                            PAPER
                            cover – 250 grams Blanka
                            inside – 135 grams Eurobulk

                            PRINTING
                            Rijser, Purmerend

                            February 2003




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