Niek Hoek,
CEO of Delta Lloyd Group, gave his New Year's speech on Monday, 16 January. Speaking to a gathering of customers and business partners of Delta Lloyd Group in the Amsterdam Concertgebouw, he looked back at 2011 and forward to 2012.
Niek Hoek said that 2011 had been a year with many highlights for Delta Lloyd Group, including new alliances, strong recognition of the Group's improved focus on customer interest and commercial successes: over 1 billion euros of large pension contracts, the launch of the first premium pension institution BeFrank, and growth in technical general insurance and mortgage sales. Its robust capital position enabled Delta Lloyd Group to continue selling these products. "That is also good for our customers who can continue to count on a reliable party that has stood its ground amidst all the turmoil of the past decade". Trust and security thus constitute the essence of the focus on customer interest.
The euro crisis is the third successive crisis in which Delta Lloyd Group has retained its solid position. Hoek emphasised the need for courage and vision to overcome the current period of financial uncertainty. "Not just from businesses, politicians and regulators, but from all of us."
Niek Hoek therefore made a plea for a different approach to risks and interest rates. The interest rates on government bonds are no longer risk-free and are often not realistic either. The effects of discounting provisions at ultra low interest rates undermine the trust in financial stability. And this is unnecessary: "It is fairly easy to restore trust. Namely by switching over to more realistic interest rates. Interest rates that take account of a certain liquidity premium, in line with Solvency II." The positive effects of this approach will help to reduce the uncertainty and reverse the negative spiral, said Niek Hoek.
Courage is also needed to give the euro our unconditional backing. Saving the euro is key. "We must accept the consequences of a single currency. We need greater political unity, a common fiscal policy, and the transfer of financial powers to a single euro authority." Political leaders should be given sufficient room to take the action required to save the currency. Hoek stressed that there was no alternative. Without the euro, Europe will be plunged into a recession lasting many years.
Finally, Niek Hoek championed the need to think about the future, sustainable solutions and opportunities instead of seeking to preserve what we have.
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New year speech
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