- Meticulous preparation of Lifetri for the EUR 1,800 billion Dutch pension system transition has resulted in a strong presence in the Dutch market for pension guarantees. A continued commitment to support Dutch pension funds has led to a healthy development of a pipeline with tailormade solutions.
- Improved capital generation following higher investment returns because of a revised strategic asset allocation and disciplined sourcing activities. Dividend and interest income increased with EUR 15 million to EUR 27 million, slightly ahead of plan.
- Solvency II ratio of 184% well above target level. The solvency ratio is in line with expectations but remains sensitive to market circumstances.
- Net result declined by EUR 33 million to a loss of EUR 71 million in 2021, due to UFR reduction, decrease of the volatility adjustment and increase in risk-free interest rates. Future capital generation and earnings increased following lower impact of Solvency II long-term guarantee measures on the liabilities.
- Reduced cost of capital following the successful issue of a listed EUR 80 million subordinated loan. The loan is eligible as Tier 2 capital for solvency purposes.
Philippe Wits, CEO of Lifetri comments
“I am proud of the significant progress that Lifetri made in 2021 in the execution of its strategy and like to thank all my colleagues who made this possible.
Our endeavours to be prepared for the expected market growth in long term guarantees really paid off. With a healthy and increased pipeline of potential closed pension books, the availability of the capital backing these transactions and a strong and scalable set up of the organization with established partners, Lifetri is well prepared to further grow its balance sheet in the years to come.
We attracted well known and experienced staff in the pension industry. On numerous occasions in 2021 we demonstrated our thought leadership in terms of pension knowledge and solution structuring capabilities to pension fund boards and important stakeholders. It is my strong conviction that Lifetri is going to play a pivotal role in the upcoming pension reform and the expected increased demand for guarantees resulting from that.
At the same time Lifetri diligently improved its capital generation by determining a revised strategic asset allocation and a successful strategy to source the assets and consequently increase investment returns. With a Solvency II ratio well above the necessary operating levels and a dedicated and committed shareholder, the guarantees towards our policy holders, are safe.
The positive underlying strategic and financial developments do not immediately translate into favourable developments of Lifetri’s net earnings. The net result decreased to a loss of EUR 79 million in 2021 from a loss of EUR 39 million in 2020. Lifetri’s accounting principles are largely in line with the Solvency II regulatory reporting whereas the company is managed on an economic basis. The adverse developments of the ultimate forward rate, the volatility adjustment and interest rates directly impacted the net result. However, as a consequence, the impact of the long-term guarantee measures on the liabilities decreased with EUR 686 million, which will result in higher capital generation and earnings going forward.
On 24 February, the world was shocked by the invasion of Ukraine. As a result of this act of war, many western countries imposed sanctions on Russia. Lifetri’s total exposure to Russian bonds was limited to EUR 5 million. The exposure to Ukrainiane bonds was EUR 2 million. All these bonds were held through investments in Exchange Traded Funds.
Looking ahead to 2022, we will continue to work on our presence in the market and structurally improve our capital generation. In 2022, important further details and decisions are expected regarding the new pension reform. We are convinced that this will further accelerate market demand for guarantees and conversion rates in the pipeline.”
Kees Jongsma, SPJ Financial & Corporate Communication
email@example.com, +31 654 798 253
Menno Harkema, CFRO Lifetri
The Lifetri Groep includes life insurance and funeral insurance, servicing approximately 550,000 customers. Lifetri is backed by Sixth Street, a shareholder which manages over USD 60 billion in assets. Sixth Street is firmly committed to the life insurance and pension markets, and alongside Lifetri also has made investments in Clara Pensions (a UK pensions consolidation platform), and Talcott Resolution (a US life and pension platform with a balance sheet of over USD 140 billion).
Sixth Street is firmly committed to the life insurance and pension markets globally, and with its own investor base being largely pension funds, is a strong partner for Lifetri’s strategy. Originating from the renowned insurers Nuvema and Klaverblad Leven, Lifetri continues to grow steadily. From 2020, Lifetri continues the guaranteed pension entitlements for the participants of pension funds, including Pensioenfonds Allianz Nederland and the Klaverblad pension scheme.
Approximately 70 employees work from the office in Maarssen. All activities are supervised by De Nederlandsche Bank. Lifetri’s ambition is to grow in the Dutch market by offering long-term security and guarantees, whether it concerns reinsurance, collective value transfer or the (partial) takeover of pension and life insurance portfolios.
This press release is released by Lifetri Groep B.V. and contains information that qualified or may qualify as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR).
This press release exclusively contains factual information and must not be interpreted as an opinion or recommendation with regard to the purchase or sale of securities issued by Lifetri Groep B.V.. This press release does not contain any value judgements or predictions with regard to the financial results of Lifetri Groep B.V. and/or its subsidiaries.
This press release contains summary information only and does not purport to be comprehensive and is not intended to be (and should not be used as) the sole basis of any analysis or other evaluation and should be read in combination with the annual report 2021 of Lifetri Groep B.V.