Delta Lloyd challenges Dutch central bank demand to fire CFO
Dutch life insurer Delta Lloyd Levensverzekering NV has confirmed a legal challenge to a central bank order to dismiss its CFO Emiel Roozen as of 1 January 2016 and pay a fine of €22.8m.
The Dutch central bank (DNB) has announced its intention to fine Delta Lloyd due to alleged improper gains made as a result of its decision to lower interest rate risk hedges in 2012. According to DNB, Delta Lloyd’s decision to lower the interest rate risk hedges just days before the DNB introduced a change of rules for calculating long-term insurance liabilities led to improper gains.
“The investigation was prompted by Delta Lloyd carrying out transactions based on confidential information resulting in financial gain” DNB stated. Consequently, Delta Lloyd has been fined with €1.2m in addition to the €21.6m of alleged financial gains, amounting to a total fine of €22.8m.
Delta Lloyd challenged the decision, highlighting that its actions did not violate Dutch law, were in line with internal risk management procedures and complied with the standards of the firms supervisory board.
Jean Frijns, chair of Delta Lloyd’s supervisory board comments: “We fail to match the perspective put forward by the DNB with the facts we detected, we have no doubt that Delta Lloyd as acted in the interests of all stakeholders at all times. This is why we have decided to take legal measures against the DNB decision, this is the only way of obtaining an independent assessment of our difference in opinion.”
Upon publication of the news, Delta Lloyd shares dropped by -4.5%.