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6. Notes to the income statement

6.1 Revenue

Revenue, specification
Amounts x €1,000     2025   2024
           
Premium income          
Premium income, Netherlands   510,458   492,148  
Premium income, Belgium   181,501   173,130  
Premium income, Germany   82,545   78,663  
      774,504   743,941
Revenue from funeral business          
Revenue from funeral business, Netherlands   353,425   342,902  
Revenue from funeral business, Belgium   74,942   74,634  
    428,367   417,536  
Internal revenue   -241,971   -226,454  
      186,396   191,082
           
Gross investment result     548,307   593,147
           
Other revenue     16,546   714
           
Total     1,525,753   1,528,884

Of the total premium income in 2025, €7.5 million consists of single premiums (2024: €6.7 million). The internal revenue concerns funerals insured with DELA that are provided by our funeral business.

From 2025, the other revenue includes revenue from the installation, construction, and maintenance of cremators following the acquisition of DFW Holding B.V.

6.2 Investment result

The investment result comprises the gross investment result less investment administration expenses.

Direct and indirect net investment result, specification 2025
Amounts x €1,000 Direct Indirect Total
       
Real estate (a) -10,513 7,190 -3,323
       
Participating interests (b) - - -
       
Other financial investments (c):      
- Shares and other variable-yield securities 45,667 235,616 281,283
- Bonds and other fixed-income securities 91,501 -90,305 1,196
- Derivatives - 231,156 231,156
- Mortgage loans 3,720 - 3,720
- Other loans 14,684 -5,685 8,999
- Real estate funds 51,097 -76,377 -25,280
- Infrastructure funds 38,018 -25,888 12,130
- Agricultural and forestry funds 3,351 -5,202 -1,851
- Mortgage funds 12,206 -10,254 1,952
- Other financial investments -501 6,923 6,422
  259,743 259,984 519,727
       
Net investment result (a) + (b) + (c) 249,230 267,174 516,404
Direct and indirect net investment result, specification 2024
Amounts x €1,000 Direct Indirect Totaal
       
Real estate (a) -11,641 -21,249 -32,890
       
Participating interests (b) -657 - -657
       
Other financial investments (c):      
- Shares and other variable-yield securities 46,002 317,696 363,698
- Bonds and other fixed-income securities 78,976 65,120 144,096
- Derivatives -42 -138,769 -138,811
- Mortgage loans 4,058 - 4,058
- Other loans 20,302 9,567 29,869
- Real estate funds 48,070 22,326 70,396
- Infrastructure funds 34,586 36,283 70,869
- Agricultural and forestry funds 2,323 18,260 20,583
- Mortgage funds 9,107 13,869 22,976
- Other financial investments -4,453 4,766 313
  238,929 349,118 588,047
       
Net investment result (a) + (b) + (c) 226,631 327,869 554,500

The direct investment result includes all received interest, rental and dividend income less all investment costs. All results – both realised and unrealised – from market value changes are allocated to the indirect investment results.

6.3 Underwriting expenses

Underwriting expenses, specification
Amounts x €1,000   2025 2024
       
Death benefits paid   62,973 62,517
Funeral costs   181,897 170,712
Expiry   40,102 27,753
Pension insurance benefits paid   11 11
Capital benefits paid   88,834 81,840
Lapses   536 541
Surrenders   38,897 51,659
Allocation to technical provision   292,566 286,828
Insurer's intercompany payouts to funeral business   -241,971 -226,454
       
Total   463,845 455,407

6.4 Acquisition costs

Acquisition costs, specification
Amounts x €1,000   2025 2024
       
Direct acquisition costs   29,870 30,932
Allocated acquisition costs   -26,620 -27,685
Amortisation of acquisition costs   19,425 17,270
       
Total   22,675 20,517

Acquisition costs consist of commissions paid to third parties.

6.5 Cost of sales

The cost of sales comprises €156.7 million (2024: €157.3 million) for the cost of the funeral business and €8.2 million (2024: €0) for the installation, construction, and maintenance of cremators.

6.6 Staff costs

Staff costs, specification
Amounts x €1,000   2025 2024
       
Salaries   172,915 153,324
Social security contributions   33,482 30,715
Pension costs   21,576 19,664
Outsourced work   54,480 53,516
Other staff costs   14,563 15,748
       
Total   297,016 272,967

6.7 Amortisation and depreciation

Amortisation and depreciation of fixed assets, specification
Amounts x €1,000   2025 2024
       
Amortisation of intangible fixed assets   18,591 14,443
Depreciation of tangible fixed assets   9,229 9,941
       
Total   27,820 24,384

6.8 Other operating costs

Other operating costs, specification
Amounts x €1,000   2025 2024
       
Building and equipment   28,416 28,387
Vehicle costs   11,330 10,274
IT costs   41,041 40,729
Advertising costs   24,501 24,421
Third-party services   29,146 29,064
Office costs   11,910 12,330
Non-recurring income   -5,593 -4,602
Non-recurring expenses   5,223 4,912
Donation to Stichting DELA Fonds   500 500
Other costs   629 2,097
       
Less: Capitalisation of software systems   -14,348 -16,043
       
Total   132,755 132,069

The non-recurring income in 2025 and 2024 mainly concerns the final calculation of the 'pro-rata VAT rate'.

6.9 Remuneration of Executive and Supervisory Board members

The remuneration of the members of the Executive Board consists solely of a fixed component and is fully paid in cash. Members of the Executive Board do not receive a representation allowance, nor do they receive shares or options. Up to the end of 2023, the remuneration of the members of the Executive Board also included a variable component. Payment of this variable remuneration (maximum of 20 per cent) was 60 per cent unconditional and 40 per cent conditional. The retention period for the conditional portion is three years, which means that payment of the conditional portion will continue until the end of 2027. This portion is also fully paid in cash.

The remuneration of the members of the Executive Board in the financial year comprised fixed remuneration of €882,000 (2024: €1,361,000), variable remuneration of €10,000 (2024: €162,000) and a pension contribution of €173,000 (2024: €259,000). The remuneration of members of the Executive Board consists of remuneration of current as well as former members.

The remuneration of the members of the Supervisory Board (of DELA Coöperatie, DELA Holding N.V., and DELA Natura- en levensverzekeringen N.V. together) in the financial year amounted to €276,000 (2024: €225,000).

The remuneration complies with the Dutch Remuneration Policy (Financial Enterprises) Act (Wet beloningsbeleid financiële ondernemingen).

6.10 Audit fees

The fee for auditing the financial statements concerns the total fees for the financial year to which the financial statements pertain regardless of whether the activities were performed by the independant auditor during the financial year. The audit fees for financial year 2024 have been adjusted to reflect the final invoice.

In this and the previous financial year, the following audit fees were charged to the profit:

Audit fees for 2025
Amounts x €1,000 PWC NL PWC international Total PWC
       
Audit of the financial statements 977 369 1,346
Other audit work 54 - 54
       
Total 1,031 369 1,400
Audit fees for 2024
Amounts x €1,000 Deloitte NL Deloitte international Total Deloitte
       
Audit of the financial statements 1,438 305 1,743
Other audit work 134 - 134
       
Total 1,572 305 1,877

The aforementioned fees concern the activities performed at DELA Group by audit firms and independent external auditors as referred to in Section 1(1) of the Audit Firms (Supervision) Act (Wet toezicht accountantsorganisaties, WTA) and the fees charged by the audit firm's entire network. The other auditing work concerns the audit of the annual quantitative statements for the regulator. The amounts are exclusive of turnover tax.

6.11 Taxes

The tax on the €117.0 million in profit before tax can be presented as follows:

Tax on profit, specification
Amounts x €1,000   2025 2024
       
Corporation tax due in reporting year   29,171 4,835
Previous years   345 -5,134
Current corporation tax   29,516 -299
       
Deferred corporation tax   4,374 -1,684
Effect of tax rate adjustment   - -37
       
Corporation tax   33,890 -2,020
       
Pillar 2 taks, current year   - 1,269
Pillar 2 tax, previous years   -788 -
       
Pillar 2 tax   -788 1,269
       
Total   33,102 -751

The nominal tax rate in the Netherlands in 2025 was 25.8 per cent (2024: 25.8 per cent), in Belgium 25 per cent (2024: 25 per cent), and for Germany the applicable nominal rate of 30 per cent (2024: 30 per cent) was taken into account. As only a limited taxable profit is determined in Germany, this results in a minimal difference between the applicable rate and the effective tax burden.

Corporation tax, notes
Amounts x €1,000   2025 2024
       
Profit on ordinary activities before tax   117,048 144,937
Nominal tax rate   25.8% 25.8%
       
Nominal tax amount   30,198 37,394
Impact of substantial-holding exemption   504 -23,837
Corporation tax, previous years   345 -5,134
Tax differences   2,843 -10,443
       
Total   33,890 -2,020

The effective tax burden varies from the nominal rate. Substantial-holding exemptions apply due to holdings of over 5 per cent in investment funds. The tax differences mainly relate to the amortisation of goodwill and mixed expenses that do not count towards the profit for tax purposes. In addition, the differences in the nominal rate due to the basic rate and different rates in Belgium and Germany have been recognised in the tax differences. The effective tax rate over 2025 is 29.0 per cent (2024: -1.5 per cent).

As at 1 January 2025, the technical provision of the insurance portfolio in Belgium was transferred for tax purposes from Belgium to the Netherlands. The reason for this is that the decision-making on this portfolio had passed to the Netherlands.

Pillar 2

DELA Group has used the mandatory exception based on RJ statement 2023-14 regarding the treatment of deferred tax assets and liabilities related to Pillar 2 income taxes.

The legislation on Pillar 2 income taxes came into effect 1 January 2024. This legislation requires the parent company to pay an additional tax in the Netherlands or abroad if the effective tax rate in a country is less than 15 per cent. DELA Group's main jurisdictions where exposures to this tax may exist are the Netherlands, Belgium, and Germany. No Pillar 2 tax is due for 2025. The position recognised in 2025 concerns an adjustment to the previous financial year.