Dutch insurer Delta Lloyd has announced the launch of a rights issue in order to raise up to €1bn, in a bid to strengthen its solvency position ahead of the introduction of Solvency II.
The rights issue is expected to launch shortly after the publication of the 2015 full year results on 24 February 2016, subject to obtaining shareholder approval at an Extraordinary General Meeting (EGM) which is to be held prior to launch.
Hans van der Noordaa, chairman of the Executive Board commented on the move: “We realise this is a very substantial capital raise. But after executing this plan, Delta Lloyd will be appropriately capitalised and well positioned for the new regulatory regime. We believe these measures will then allow us to create value for our stakeholders going forward, while allowing shareholders to benefit from the long term potential of our strong franchise.”
The Dutch stock market responded with scepticism to the announcement, as of 12:20 CET, shares traded on Amsterdam stock exchange had fallen by more than 7%, according to Bloomberg data.