The investments in financial year 2024 mainly involve multiple software systems.

The impairment relates to the goodwill of Salarise BV.
The acquisition concerns the goodwill of the acquired funeral companies Aerde-Hof & Dochter BV and Begrafenis Onderneming Dordrecht en omstreken Beheer BV.

At the end of the year, a sum of €19.1 million of the goodwill position is associated with acquired Dutch and Belgian funeral activities. The valuation of this goodwill position at the end of the year strongly depends on the expected return on the one hand and the expected future operating results on the other. Any major deviation from the current estimates could potentially have a significant effect on the book value. At year-end, the goodwill position related to the acquisition of Yarden was €55.4 million. The settlement of this amount is linked to the run-off of the Yarden portfolio.

Real estate involves investments in direct properties. The balance sheet of DELA Group does not include any real estate investments from operational leasing in which DELA is the lessee. To realise a better geographical distribution of real estate investments, parts of the portfolio were sold from 2020 onwards and investments made in international real estate funds (investment category: real estate funds). The value of the properties (excl. crematoriums and funeral homes) which were still in the portfolio at the end of 2024 had fallen by approximately 17 percent during the year. The market rent of these assets rose by around 2 percent. At the end of 2024 the total value of this portfolio was 11.9 times the market rent (2023: 11.6 times).

A positive result of €3.1 million was realised over the disposals. The sales result is determined by the difference between the net sales return and the valuation on the balance sheet on the selling date.

Other real estate does not include assets that are not being used for company activities. The overview below shows a categorisation of the real estate objects.

The investments in retail mainly consist of retail properties at A-1 locations and shopping centres throughout the Netherlands.

Other real estate relates to DomusDELA and ongoing projects. The fair value of DomusDELA Real Estate and Klooster was externally appraised in 2023.

No real estate was under development on 31-12-2024.

The rental contracts of commercial real estate are drawn up based on ROZ model 2012. Around 45 percent of the contracts have a fixed term and are extended automatically if not terminated. Around 57 percent have a fixed term with an extension rule of five years, and others have various fixed terms (usually one or three years). Some 25 percent of the contracts are indefinite and can be terminated at any time with a term of notice of one year. The rental contracts do not include an option to buy.

The negative ‘Other income and costs’ are mainly the result of an unrealised decline in value in the real estate. This is part of the investment results.

DELA Group has a limited exposure to operating costs related to vacant properties.

The valuations of real estate include estimates, which means there is a level of uncertainty in the value and a bandwidth should always be taken into account. The accuracy of an appraisal of a common object should be within a bandwidth of 10 percent (+ / -) of the value. The valuation method used for each real estate category is clarified below.

• DELA Funerals Assistance 1 BVBA has a 35 percent interest in Société d'Étude et de Service pour la Crémation NV;
• DELA Holding NV has a 18.4 percent interest in Neo Joule BV, which was set up to research various cremation methods;

Voor Elkaar Holding NV has impaired its 25 percent interest in Salarise BV. A lack of success led to the decision not to invest any further in this company and a settlement plan has been initiated.

DELA Uitvaartverzorging NV sold its 25 percent stake in the funeral company Jelsumerhof BV in 2024.

The Right Meal BV was declared bankrupt in 2023 and the bankruptcy settled in 2024. At the end of 2023, this position was already devalued to € 0.

A restructuring took place within the investments of DELA Natura in February 2024. This resulted in the sale and repurchase of some shares and bonds, which is reflected in the changes in purchases and sales with respect to shares and bonds in the above movement schedule.

The unhedged currency positions have been determined based on the look-through principle, as this reflects the actual currency risk. The comparative figures have been adjusted accordingly, resulting in a €92 million lower currency risk for 2023 than previously reported in the 2023 financial statements.

Shares and bonds
All shares and bonds are listed on the stock exchange.

The modified duration formula is used to measure interest rate sensitivity. The average modified duration of the bonds and other loans is 4.7.

Derivatives
The valuation of the derivatives (forward exchange contracts) is made based on the ‘mark-to-model’ approach. The average remaining term of these contracts is 10 weeks. There were also derivatives in place on 31 December 2024,  but as their value was negative they were classified as short-term liabilities on the liabilities side.

Mortgage loans
The mortgage loans involve direct investments in mortgages, all provided with NHG accreditation. The fair value of the mortgage loans is €138.7 million. The fair value of the collateral for the mortgage loans at the end of 2024 was €352.4 million.

Other loans
In 2024, Voor Elkaar Holding NV (VEH) provided an additional convertible loan to Prikkl amounting to €1 million. The interest on the loan is a fixed rate of 6 percent and runs until 2027. VEH has the option to convert the loan into an equity stake in 2027. The agreement also includes two call options on shares. As the value of the conversion right and call options cannot be reliably determined, these have been valued at €0.

Real estate funds
The real estate funds are non-listed and their valuation based on fair value using the discounted cash flow method. This valuation is adopted from the fund managers and represents the valuation method commonly used when trading ownership interests, generally following the INREV valuation. The valuation complies with generally accepted valuation methods and is conducted by an external appraiser/valuer. Most funds provide an ISAE3402 Type II report or an equivalent thereof. 

For all real estate funds, an audit opinion from the external auditor on the valuation or financial statements is obtained, or an audit statement is received before the financial statements of DELA Group are finalised. This ensures we can have sufficient confidence in the reliability of the valuations reported by the fund managers. A limited level of estimation uncertainty inherently present in the investments held by the fund remains.

Infrastructure funds and agricultural & forestry funds
The infrastructure funds and agriculture & forestry funds are non-listed. The valuation of these funds is based on fair value and adopted from the fund managers. The discounted cash flow method is used for the valuation of these funds. Generally, a valuation basis equivalent to the INREV module is applied. It has been determined that these standards differ only marginally. The valuation is performed by an external appraiser/valuer. Most funds provide an ISAE3402 Type II report or equivalent. The audit opinion from the external auditor regarding the valuation or financial statements of the funds or the audit statement is only received for some funds after the DELA Group financial statements have been finalised. An analysis has shown that there is sufficient assurance regarding the reliability of the valuations reported by the fund managers. A limited level of estimation uncertainty inherently present in the investments held by the fund remains.

Mortgage funds
The mortgage fund is non-listed and consists of investments in non-NHG (national mortgage guarantee) mortgages. The valuation of the mortgage fund is based on fair value and adopted from the fund managers. The discounted cash flow method is used for the valuation of the mortgage fund. The fund applies local accounting standards, which are evaluated by DELA for applicability within its own valuation principles. The valuation is performed internally and reviewed by the fund’s external auditor. An ISAE3402 Type II report is received for this process. The audit opinion from the external auditor regarding the fund’s financial statements is obtained before the DELA Group financial statements are finalised. This provides sufficient assurance about the reliability of the reported valuations. A limited level of estimation uncertainty inherently present in the investments held by the fund remains.

On the balance sheet date, the loan-to-value is 64.6 percent (2023: 70.1 percent).

Investments in cash and cash equivalents
Investments in cash and cash equivalents relate to receivables and debts directly linked to the investment portfolios with a mandate issued to the asset manager.

Other financial investments

The amounts included under this section relate to the art collection, interests in non-listed private equity companies, and a loan fund. The art collection is valued at cost price or lower market value: €4.3 million (2023: €4.1 million) at the end of 2024. The value of the loan fund amounted to €73.3 million at the end of 2024 (2023: €13.2 million). The market value of private equity companies is based on the discounted cash flow method. 

The loan fund is non-listed and consists of investments in company loans. The valuation of the loan fund is based on fair value provided by the fund managers. The fair valuation of the loan fund applies standards aligned with IFRS and US GAAP. DELA has established that these standards differ only marginally from DELA's own principles. The valuation is conducted by an external assessor. DELA receives an ISAE3402 Type II report from the fund. Before the DELA Group financial statements are finalised, DELA receives at least an audit opinion or an audit statement from the auditor providing sufficient assurance regarding the reliability of the reported valuations. A limited level of estimation uncertainty inherently present in the investments held by the fund remains.

Securities lending
DELA Group lends shares and bonds. To limit the risk for DELA Group, borrowers must provide collateral for the loans. Cash collaterals are not allowed and the lending parties must comply with strict requirements. To further limit the risk, the following additional restrictions are applied:

• counterparties must have a S&P rating of at least A-;
• collateral may only involve government bonds from OECD countries with a S&P rating of at least AA- in accordance with S&P;
• the market value of the collateral should be at least 102 percent of the market value of the loaned securities;
• shares on our engagement list are not eligible for lending. Engagement is the process by which active rights as shareholder are being used.

The market value of the loaned securities on 31-12-2024 was €182.3 million (2023: € 408.4 million). The value of the collateral is €188.4 million (2023: €421.8 million).

The other receivables have a term of less than one year, except for the deferred tax assets. 

The deferred tax positions are subjected to offsetting (where possible). The table below shows a specification of the various deferred positions that are presented jointly on the asset side of the balance sheet, which also include negative amounts due to the offsetting applied.

In the valuation of the deferred tax asset loss, the recoverability of the item is assessed through projections of future taxable profits. These future projections involve estimation risks, primarily related to the forecasts of future investment results and future profit sharing. The deferred tax asset relating to loss set-off has decreased due to corrections in the tax returns of previous years.

The disposals resulted in a book loss of €33,000 (2023: €232,000).

No book result was realised on the divestments (2023: book profit of €17,000).

The total result over the financial year amounts to € 145,395,000

Although the Solvency II ratio went down, it is still considered robust. For the progress of the solvency ratio in 2024, refer to the ‘Our Finances’ section.

For further clarification of how the solvency ratios are determined, refer to the SFCR report (solvency and financial condition) provided on the DELA website.

The provisions are mainly of a long-term nature.

Offsetting is applied to the deferred tax positions. The table below provides a specification of the various deferred positions that are collectively presented on the liabilities side of the balance sheet, including negative amounts as a result of offsetting. This relates to the deferred tax position with the Belgian tax authorities.

Almost the entire technical provision can be considered long-term. The modified duration is 35.2.

The share of reinsurers in the technical provision and the payments to which DELA Group is liable as a result of its reinsurance contracts are deducted from the gross technical provision.

The provisions for life risk are initially based on base tariffs, which are usually mortality rates, a fixed actuarial interest and cost parameters for initial and ongoing costs.

The increase in the annual premium and the insured capital is mainly due to the acquisition by DELA Group of a German insurance portfolio.

The allocation of acquisition costs relates to paid provisions in Belgium and Germany.

The total of the technical provisions shows a surplus of €2.1 billion at current value in the adequacy test performed at the end of 2024, which is slightly lower than the previous year. The results of the adequacy test were conducted at the level of DELA Natura (including the Belgian and German branches).

A reinsurance contract related to an inactive portfolio was redeemed in 2023. The associated deposit was refunded.

The interest rate over the deposit fund is based annually on the ECB deposit interest rate on 31 December of the relevant year plus 0.75 percent, with a minimum of 2.5 percent to 6.0 percent a year depending on the starting date and deposited amount.

The interest rate for the deposit funds which were formerly part of (the acquired) Yarden deposits in 2024 was 3.58 percent (2023: 0.44 percent).

Of the monetary loans, €0.2 million has a term of less than one year, €1.7 million between 1 and 5 years, and €6.3 million a term of more than 5 years.

Grave maintenance (included in the item ‘Other debts and accrued liabilities’ above)
The accrued item (amounting to €6.4 million) is determined based on revenues received in advance under maintenance agreements for the upkeep of grave monuments. Older contracts are depreciated on a straight-line basis over a period of 15 years. New contracts are depreciated in accordance with the term of the contract.