Insurance group Delta Lloyd on Monday announced plans to raise up to €1bn through a new share issue.
The aim is to strengthen the company’s solvency position following the introduction of new international standards known as Solvency II in January 2016.
‘We realise this is a very substantial capital raise,’ chief executive Hans van der Noordaa said in a statement. ‘But after executing this plan, Delta Lloyd will be appropriately capitalised and well positioned for the new regulatory regime.’
The rights issue is expected to launch shortly after the publication of the 2015 full year results on February 24 2016, subject to obtaining shareholder approval.
The company’s share price fell by 4% in early trading on the Amsterdam stock exchange on Monday, following the announcement.
According to the Financieele Dagblad, the issue is smaller than had been expected by analysts, following reports about the company’s problems in meeting the stricter capital requirements. Delta Lloyd said in August it had made a first-half loss of €533m.
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