Highlights
- Successfully continued building the platform with partners bringing together capital, key resources and expertise. Enabling Lifetri to further write Dutch pension risk transfer business for defined benefit arrangements.
- Ongoing development of tailor-made solutions for pension funds and further strengthening of relationships with the boards of pension funds, in preparation of the Dutch pension system transition.
- Entered into a long-term strategic relationship with Legal & General. Through this relationship, which remains subject to regulatory review, Lifetri will benefit from Legal & General’s deep expertise in global PRT markets and reinsurance capabilities.
- Invested in a scalable and legacy-free pension platform, enabling Lifetri to smoothly absorb insurance back-books.
- Improved capital generation driven by higher investment returns following further implementation of strategic asset allocation. Investment income increased by 32% compared to 2021, achieving the ambitious target for 2022.
- Solvency II ratio of 146%, and pro forma to 154%, above norm solvency of 135%. The decrease in solvency ratio is in line with anticipated sensitivities and a result of the deliberate choice to manage the balance sheet on an economic basis. The pro forma solvency II ratio per year-end is due to shareholder injection of € 10 million. This reaffirms their long term commitment to Lifetri.
- Net result improved by € 23 million to a loss of € 81 million in 2022, due to UFR step down, interest and spread movements and further investments in Lifetri’s pension platform. The net result does not reflect the positive development of a significant reduced impact of the Ultimate Forward Rate on the technical provisions of € 1.1 billion.
Philippe Wits, CEO of Lifetri
“2022 was an unprecedented year and Lifetri has proven to be resilient during these times of turmoil. We have continued to invest steadily with higher returns. Further, despite shortages on the labour market, we have been able to hire and retain talent while continuing to build on the scalability of the organisation. Lifetri also set Environment Social Governance ambitions and continued to make progress on the execution of its Responsible Investing policy. And most importantly, we’ve been able to keep delivering on our promise to offer guarantees to all our customers and furthermore maintaining the best service possible.
We have worked hard on our product offering aimed at providing guaranteed solutions for pension funds and strengthened our relationships with the boards of pension funds. We also continued to build on our fully scalable and legacy free platform. These efforts make Lifetri well positioned for the upcoming pension transition. We see a strong demand in the market, also driven by the new pension law, calling for a higher demand in guarantees and different and innovative solutions.
We recently announced a long-term relationship with Legal & General, which remains subject to regulatory review. We will jointly approach the market to support the transition of the Dutch pension system. I am proud that such a reputable market leader in pension transfers has chosen Lifetri to work with.”
Our continuation to invest steadily in our strategic asset mix led to higher investment returns and helped improving our capital generation and underlying financial performance. These positive developments do not immediately translate into a higher reported net result and Solvency II ratio. 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 and Solvency II ratio. As a consequence, the impact of the long-term guarantee measures on the liabilities decreased with € 1.0 billion, which will result in higher capital generation and earnings going forward.
We are very pleased with the continued support from our shareholder and partner, Sixth Street. They share our long-term view of creating value for both the customers, as well as Lifetri, and are just as dedicated and committed to safeguard the guarantees towards our customers as we are. Their support also allows us to manage our balance sheet on an economic basis.
Further, we would not have been able to continue to build on the solid foundation which will allow us to benefit from the upcoming pension reform without our employees without whom we can’t serve our customers, our bondholders who gave us their confidence, all our partners, and the boards of pension funds that were open to discussing the future of pensions and, like us, want to ensure that we provide pensioners the retirement they deserve.”
Annual Reports
Today, Lifetri Groep B.V. also published its Annual Report 2022, as well as the Annual Reports 2022 of Lifetri Verzekeringen N.V. and Lifetri Uitvaartverzekeringen N.V.
About Lifetri
Media contacts
Kees Jongsma, SPJ Financiële & Corporate Communicatie
cjongsma@spj.nl / +31 654 798 253
Lifetri Groep
Lifetri Groep (Lifetri) is a Dutch insurance company with a history that goes back seventy years. The name Lifetri was chosen in 2018 as a reference to the growth ambitions of the company and also refers to Lifetri’s roots in Dutch society.
Lifetri is located in the Netherlands and under supervision of the Dutch regulator, De Nederlandsche Bank. Lifetri focusses on guaranteed pensions, term life and funeral insurance in the Netherlands, servicing approximately 550,000 customers.
Lifetri currently provides pension guarantees to (former) employees of Allianz Nederland, a Dutch insurance company, and to (former) employees of Klaverblad cooperation, a Dutch cooperative insurance company.
Lifetri’s principal shareholder is Sixth Street, a leading global investment firm with approximately US$65 billion in assets under management and committed capital. Sixth Street pursues investments, such as Lifetri, and strategic partnerships in the insurance and reinsurance industry through its Sixth Street TAO platform with current investor breakdown showing long-term investors, such as pension funds and sovereign wealth funds accounting for ~80%. In addition to Lifetri, the Sixth Street TAO platform holds other dedicated pension and insurance affiliates, including Talcott Financial Group in the US and Clara Pensions in the UK.
Disclaimer
This press release is released by Lifetri Groep B.V. and contains information that qualifies 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 2022 of Lifetri Groep B.V.