UPDATE: DELTA LLOYD

DL NA -21.3%. TAKING OUR MEDICINE AND CLOSING POST NUMBERS

Company reported 1H losses in the amount of 533 million EUR.

Loss occurred b/c of poor interest rate hedging.

We got this trade very wrong and the capital generation story never materialised.

Time to move on.

 

DONE VERY TIGHTLY. WAS ALL COVERED IN 2.5 HOURS APPARENTLY

Tuesday • 17 March 2015 • 15:51

Solvency II ratio has been a big overhang for them…this may will be seen as the removal of the overhang and people to look at the capital return story finally

They generate 10-15% of mkt cap in cash currently and only pay a 5% divided. Belgium bank disposal to come and ultimately higher payouts on the way

 

DELTA LLOYD TO SELL BELGIUM BANKING BUSINESS FOR EU219 MLN

Tuesday • 16 December 2014 • 07:46

Will have an estimated positive effect of around 10 percentage points on IGD group solvency

Was a decent part of our bull case to get them over the self imposed 200% solvency and increase the capital return story. Generates 10-15% of mkt cap in cash

May take a while to come through in this mkt but higher divi is on the way. Currently +6.8%

 

INVESTOR DAY TOMORROW

Thursday • 20 November 2014 • 13:47

DL is holding an investor day tomorrow in Amsterdam

We continue to like DL on its capital return story and value vs the sector

Dividend messaging will be key as they aim to remove the scrip component with solvency over 200%(Self imposed level)

Another catalyst will be commentary on the disposal of the Belgium bank which will add another 15% to solvency and lead to an increased payout

They generate 10-15% of mkt cap in cash currently and only pay a 5% dividend. Higher payout on its way if they deliver tomorrow

 

REITERATION: BUY MORE

Wednesday • 18 June 2014 • 10:19

DL is misunderstood and just too cheap. This is the value in the sector.

Looking to real capital generation which has been our bull case and one we feel the market does not appreciate at all.

Subordinated note last Friday moved them over the 200% (self imposed) solvency level which is key to future dividend policy. This will lead to a reduction in the scrip divi which is 4% dilutive to share count every year and a potential increase in the dividend.

Underlying trends are strong as they continue to take mkt share and dominate the pensions market which is another potential positive catalyst.

Costs been smashed since 2008 and they are not finished. This will lead to increases in operating leverage.

Disposal of Belgium bank to come in the next 2 months I am hearing which will add another 15% to solvency.

Generate 10-15% of mkt cap in cash currently and pays a 5% dividend. Higher payout and share price on the way.

Stay long/Add for the disposal of Belgium bank and capital returns.

 

DELTA LLOYD: 200DMA BOUNCEOLA

Monday • 02 June 2014 • 15:01

Cheap relative to the sector and market.

However it has had a tough time recently and is unloved.

It has a lot of positives RoEs are expected to increase to a very healthy 17.2% in ’15, and offering a divi yield of around 5.3%.

As a name the big story is capital generation which is under appreciated we feel.

This is a name we like MT and feel this is a good entry point if it holds the 200 mda.

It has bounced of this level repeatedly in the past and moved on.