DELA Group manages risk positions using regular asset and liability management (ALM) studies as it aims to achieve long-term investment results that exceed the interest liabilities arising out of insurance contracts and deposits and to achieve the profit sharing goals as much as possible. The main investment goal in the insurance activities is to maximise the investment return within the approved risk framework.

At the end of 2025, final and unconditional agreement was reached on the sale of the shares in DELA Vastgoed B.V. in which the retail, residential, and office real estate had been placed. The valuation at year-end 2025 is based on the agreed purchase price, and the shares were transferred in financial year 2026.

Until the end of 2024, the valuation of the real estate was based in part on available market data and was performed by external valuers. The valuations were made in accordance with RICS (Royal Institution of Chartered Surveyors) valuation standards and the regulations of the Dutch Register of Property Valuers (Nederlands Register Vastgoed Taxateurs, NRVT). Both the RICS valuation standards and the NRVT regulations – and therefore the valuations – complied with International Valuation Standards. The method depends on the type of real estate. In the real estate portfolio, the GIY/NIY method (gross initial yield/net initial yield), capitalisation method, and discounted cash flow (DCF) method were used. At least once every three years, the value was determined by independent, external experts by means of a full valuation based on the private sale value in rented state. In the intervening years, the value was based on a revaluation that was also performed by external experts. Profit on sales and changes in the value of real estate measured at market value are recognised in the income statement. These changes in value via the income statement are recognised – in so far as these accumulated changes are positive (at property level) – in the revaluation reserve, taking deferred taxes into account. The original cost, with no adjustment for depreciation, is also taken into account.

The capitalisation method or DCF method was used to calculate the fair value of the retail real estate. The valuer decides which method is best suited to determine the value. The capitalisation method is mainly used for shops, and the DCF method mainly for shopping centres. The capitalisation method determines the fair value based on the gross market rental value of the lettable floor area of the buildings and/or land, less property charges and other expenses associated with the real estate, and related to a net return that is considered realistic under the current market conditions.

The DCF method was used to determine the fair value of residential real estate. This calculation assumes a return over a time horizon of ten years. The cash flows consist of rental income and any proceeds on single-unit sales, less property charges and other expenses associated with the real estate.

It is standard market practice to value offices using the income approach and the comparative method. The valuation was therefore based on a combined GIY/NIY-DCF calculation method.

Crematoriums are measured at fair value at the balance sheet date. Both the DCF method and capitalisation method are used to determine this fair value for crematoriums older than five years. The discount rates applied are in line with the market and range between 9.6 per cent and 10.6 per cent. In addition, the value is determined by independent, external experts once every five years.

In the intervening years, the fair value is determined internally. The external valuation takes place on a rotational basis over the portfolio, which means that part of the portfolio is always determined annually by independent, external experts.

Crematoriums less than five years old are measured based on the all-in building costs, as this is considered a start-up phase. In addition, an internal calculation model is used every year to test for impairment.

Due to the lack of current transactions in the market that could be used to validate the valuation process, the valuation of real estate entails a significantly heightened degree of uncertainty. In the event of sales transactions in the period in which the financial statements are prepared and when there are differences between the selling value and assessed value, valuation of the real estate is based on the actual selling value. Profit on sales and changes in the value of real estate measured at market value are recognised in the income statement. These changes in value via the income statement are recognised – in so far as these accumulated changes are positive (at property level) – in the revaluation reserve, taking deferred taxes into account. The original cost, with no adjustment for depreciation, is also taken into account.

The funeral centres owned by the insurer (or one of its participating interests) are classified as investment property. These funeral centres are measured at fair value at the balance sheet date. The capitalisation method is used to determine this fair value for funeral centres older than five years. In addition, the value is determined by independent, external experts once every five years. In the intervening years, the fair value is determined internally. The external valuation takes place on a rotational basis over the portfolio, which means that part of the portfolio is always determined annually by independent, external experts.
Funeral centres less than five years old are measured based on the all-in building costs, as this is considered a start-up phase and is therefore the best estimate of fair value.
Profit on sales and changes in the value of real estate measured at market value are recognised in the income statement. These changes in value via the income statement are recognised – in so far as these accumulated changes are positive (at property level) – in the revaluation reserve, taking deferred taxes into account. The original cost, with no adjustment for depreciation, is also taken into account.

All shares and bonds are listed.

The modified duration formula is used to measure interest rate sensitivity. The average modified duration of the bonds and other loans is 4.7 (2024: 4.7).

The valuation of the derivatives (forward exchange contracts) is based on the mark-to-model approach. At year-end 2025, the average remaining term of these contracts is 67 days.

At year-end 2024, the derivatives had a negative value of €95.5 million; these were shown in the balance sheet under the current liabilities and accruals and deferred income.

The mortgage loans concern direct investments in mortgages, all of which are covered by the National Mortgage Guarantee (Nationale Hypotheek Garantie, NHG). The fair value of the mortgage loans is € 125.1 million. The fair value of the collateral for the mortgage loans at year-end 2025 is € 356.7 million.

The real estate funds are unlisted. The real estate funds are measured at their fair value based on the DCF method. This value is provided by the fund managers and represents the valuation method that is also used when trading properties, which is generally the same as the INREV valuation. Valuation is in accordance with generally accepted valuation methods.
It is performed by an external valuer/valuator. We receive an ISAE3402 Type II report or equivalent for most funds.

For all real estate funds, the independant auditor's report on the valuation or the financial statements – or a status update on the audit combined with backtesting if the report is not yet available – is received before the financial statements of DELA Group are adopted. This provides sufficient confidence in the reliability of the valuations reported by the fund managers. A limited level of estimation uncertainty is inherent in the investments held by the fund.

The infrastructure funds and agricultural and forestry funds are unlisted. The valuation of the funds is based on the fair value provided by the fund managers. The value of the funds is determined using the DCF method. A technique equivalent to the INREV method is generally used in measuring the value of the funds. We have determined that there are only marginal differences between them. The valuation is performed by an external valuer/valuator. We receive an ISAE3402 Type II report or equivalent for most funds.
The independant auditor's report on the valuation or the financial statements of some of the funds – or a status update on the audit combined with backtesting if the report is not yet available – is not received until after the financial statements of DELA Group have been adopted.
Analysis has provided sufficient certainty about the reliability of the values reported by the fund managers, but there remains a limited degree of estimation uncertainty that is inherent in the investments held by the fund.

The mortgage fund is unlisted and consists of investments in non-NHG accredited mortgages. Their valuation is based on the fair value provided by the fund managers. The DCF 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 accounting policies. The valuation is performed internally and reviewed by the fund's indepandant auditor. We receive an ISAE3402 Type II report on this valuation. The independent auditor's report on the fund's financial statements is received before the financial statements of DELA Group are adopted. This provides sufficient certainty about the reliability of reported values, but there remains a limited degree of estimation uncertainty that is inherent in the investments held by the fund.

Investments in cash and cash equivalents concern amounts receivable and payable directly related to the investment portfolios with a mandate issued to the asset manager.

The amounts included in 'Other financial investments' relate to the art collection, interests in unlisted private equity companies, and a loan fund. The value of the art collection is measured at the lower of cost and market value. At year-end 2025, this was €4.6 million (2024: €4.3 million). At year-end 2025, the loan fund was valued at €150.1 million (2024: 73.3 million). The market value of the private equity companies is based on the DCF method.

The loan fund is unlisted and consists of investments in business loans. The valuation of the loan fund is based on the fair value provided by the fund managers. Standards aligned with IFRS are applied in the valuation of the loan fund. DELA has established that these standards differ only marginally from DELA's own accounting policies. The valuation is performed by an external valuer. We receive an ISAE3402 Type II report from the fund. Before the financial statements of DELA Group are adopted, DELA receives at least an independent auditor's report, or audit statement, providing sufficient certainty about the reliability of the reported values, but there remains a limited degree of estimation uncertainty that is inherent in the investments held by the fund.

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

• Counterparties must have an S&P rating of at least A-. 
• Collateral may only be government bonds from OECD countries with an S&P rating of at least AA-. 
• The market value of the collateral must be at least 102 per cent of the market value of the securities lent.
• Shares on our engagement list are not eligible for lending. Engagement is the process by which shareholders actively exercise their rights.

The market value of the securities lent as at 31 December 2025 was €190.7 million (2024: €182.3 million). The value of the collateral is €198.2 million (2024: €188.4 million). The income from the securities lent was €0.5 million (2024: €0.4 million).

DELA Group determines its solvency on the basis of Solvency II. This European calculation framework takes into account the risks recognised in the balance sheet of the insurer when determining solvency. DELA Group used the Solvency II standard model for its calculations. This is based on the interest rate term structure (including Ultimate Forward Rate) at year-end 2025 as determined by European regulator EIOPA. Based on the volatility of the solvency ratio, the minimum solvency ratio deemed necessary has been set internally at 150 per cent.

The liability adequacy test shows whether the technical provision is sufficient to provide a high degree of certainty regarding future amounts payable to policyholders. In the test, the balance sheet provision is reduced by the related allocated acquisition costs and VOBA (Value of Business Acquired) and compared to a provision that takes current estimates of all future cash flows and developments into account. These cash flows include the expected future profit share and premium action. The current estimates take into account the uncertainty margins prescribed in Guideline 605 of the Dutch Accounting Standards Board (Raad voor de Jaarverslaggeving).

Should the current estimate be lower than the available technical provision, it can be assumed that the available balance sheet provision is able to fulfil future amounts payable to policyholders.

The liability adequacy test is performed on the total portfolio of insurance liabilities every year. Any deficit is charged directly to the income statement, initially by charging it to the future profit margins in acquired portfolios, followed – if necessary – by charging it to the allocated acquisition costs and, finally, by establishing an additional provision if required. Charges to allocated acquisition costs or future profit margins in acquired portfolios due to this test are not reversed in later years. There were no charges in previous years.

This concerns deposits by customers for future funeral services that are paid out at the time of death. This item is therefore mainly of a long-term nature.

This concerns loans taken out by subsidiaries. The applicable interest rates range from 1 per cent to 4 per cent.

DELA Coöperatie has issued a liability statement for most of the consolidated subsidiaries as referred to in DCC Article 2:403. These subsidiaries are included in section 1.2.

Coverage under the group insurance from the Dutch Terrorism Claims Reinsurance Company (Nederlandse Herverzekeringsmaatschappij voor Terrorismeschaden N.V., NHT) entails a maximum €2.6 million contingent liability for terrorism clams. No terrorism claims as defined by this agreement occurred in the financial year.

A total of €1.3 million in bank guarantees have been provided within DELA Group. These were mainly issued for rental contracts with external parties.

DELA Group has a credit facility at Northern Trust with a maximum of €100 million or 10 per cent of the value of the securities deposited for safekeeping. The collateral therefore comprises the securities held in safekeeping by Northern Trust. The applicable interest rate is the ESTER interest rate plus 1.25 per cent.

In 2025, DELA Group signed a new agreement to invest €75 million and $350 million in infrastructure funds. At year-end 2025, the remaining investment commitments with various counterparties amounted to €88.2 million and $371.2 million (converted into €315.5 million as at the balance sheet date).

In 2025, DELA Group signed a new agreement to invest €50 million in real estate funds. The remaining investment commitments amounted to €50 million at year-end 2025.

In 2025, DELA Group signed a new agreement to invest €25 million in agricultural and forestry funds. At year-end 2025, the remaining investment commitments with various counterparties amounted to €60.8 million and $40.8 million (converted into €34.7 million as at the balance sheet date).

DELA Group is entitled to future rental income as a result of current rental agreements.

Group tax entities have been created within DELA Group for Dutch and Belgian corporation tax and turnover tax. Every company within the group tax entity is severally liable for the taxes due. The composition of these group tax entities is given in the table below.

On 9 January 2026, DELA Natura- en levensverzekeringen N.V. sold and transferred all its shares in DELA Vastgoed B.V.