Dutch central bank fines Delta Lloyd €22.8m, says CFO must go, over interest rate changes

The Dutch central bank is fining insurance company Delta Lloyd €22.8m and demanding the resignation of its finance chief Emiel Roozen for allegedly using confidential information to change its interest rates.

The fine has been imposed on Delta Lloyd for lowering its interest rate risk hedges in July 2012, just days before the central bank introduced a fixed interest rate for long term liability calculations. This allowed the insurer to benefit financially, the central bank said in a short statement.

The insurance company said it believes these measures are based on ‘incorrect assumptions and considers them disproportionate.’

‘We cannot reconcile the central bank’s view with the facts as established by us,’ supervisory board chief Jan Frijns said in a statement. ‘We have no doubt that Delta Lloyd acted at all times in the interests of all stakeholders.’

Delta Lloyd is now planning to take legal action against the central bank and will ask the courts to ‘rule on the interpretation of the facts and circumstances and the associated conclusions, including the “dismissal” of the CFO, as well as the fine.’

The central bank declined to comment further on the claims.