2 Executive Board report

We start the Executive Board report by discussing the Yarden takeover, with Yarden Holding BV becoming a subsidiary of DELA on 2 August.

Yarden had been in financial difficulties for some time due to the continued low interest rates and related low solvency, especially in relation to claims from around 390,000 package policyholders. DELA saw an opportunity to provide Yarden policyholders with continuity and realise scale benefits for DELA members. The idea behind the takeover from a solidarity perspective is that a strong collective helps a weakened one create an even stronger collective. Thanks to the takeover, DELA welcomed around one million additional policyholders and a large number of funeral centres and crematoriums, giving DELA a better coverage in the Netherlands from its own locations. It is a good example of a win-win situation: thanks to the takeover, DELA can provide financial stability and inflation protection to Yarden package policyholders while simultaneously increasing the chance of profit distribution for its own members.

The process involved a long trajectory, with various stumbling blocks on the way:

• In 2007 Yarden unilaterally converted its polices into a simplified model via a so-called en-bloc provision.
• In August 2018 it became clear that this simplification had not been realised legally so all package policies were reinstated.
• In November 2018, Yarden informed the Dutch central bank (DNB) that it could no longer meet its statutory solvency requirements.
• In July 2019 Yarden again appealed to the ‘en-bloc’ clause in the conditions of the funeral insurance policies as a way to enable financial recovery.
• In October 2019 DELA announced plans to take over insurance and funeral company Yarden.
• A large part of 2020 was spent on preparing the takeover.
• A group of 19 policyholders launched a court case against Yarden in the summer of 2019, disagreeing with the depreciation of their policy. A preliminary injunction granted by the court resulted in uncertainty regarding the legality of the in-kind polices
• In late September 2020 DELA stopped the takeover as it was important that Yarden could continue to recover while remaining independent, something which the injunction made uncertain. The recovery action was required to improve the financial position and a major condition for DELA to allow the signed agreement with Yarden to become a takeover.
• In November 2020 Yarden appealed against the court’s verdict.
• In December 2020 the court rejected the claim from the policyholders, stating that the en-bloc provision was the last resort for the policyholders and that Yarden had no other way to comply with its statutory solvency requirements.
• After the Financial Services Complaints Tribunal (Kifid) and the court determined that Yarden was allowed to unilaterally change the policy conditions of the package policies in the interest of its financial recovery, DELA and Yarden resumed takeover talks.
• In May, the Consumer Association decided to halt its preparations for proceedings against Yarden’s recovery plan. Confident that Yarden’s recovery plan would now continue the takeover became possible again for DELA.
• On 5 May the agreement was signed.
• On 2 August, Yarden Holding BV was taken over by DELA Holding NV, a subsidiary of DELA cooperative. The Yarden association is not part of the takeover and will continue autonomously with DELA’s support.

Insurer Yarden Uitvaartverzekeringen NV, the daughter of the acquired Yarden Holding BV, merged with DELA’s insurance segment DELA Natura- en levensverzekeringen NV on 4 August. This means that DELA has combined all its insurance activities in one company. The invested capital of Yarden’s insurer represented a value of €1.62 billion on the takeover date, and was taken under DELA’s management. See the ‘Our Finances’ section of this report for more about the consequences of the Yarden takeover on investments and (technical) facilities.

Our Finances > Yarden takeover

The Dutch central bank and the Netherlands Authority for Consumers and Markets (ACM) approved the takeover, which increased both the number of people insured and the number of DELA crematoriums. To prevent DELA from becoming too large in some areas in the Netherlands, ACM proposed that DELA sell seven crematoriums (including the four related funeral centres) and two separate funeral centres. DELA had already taken this into account and, in view of Yarden’s dire situation, was given the opportunity to realise the sale after the takeover. This involves Yarden crematoriums in Beuningen, Heerlen, Groningen, Schagen, Utrecht and Venlo-Blerick. In the Rotterdam region, DELA would sell its own crematorium in Spijkenisse. For the separate funeral centres, it involved the Yarden locations in Veldhoven and Venray.

The service provision of the locations to be sold continued until the moment of sale, while an independent party maintains supervision to ensure quality, price and service are kept at the same level.  

On 17 August, it was announced that the Yarden locations in Veldhoven and Venray were sold as a whole to Van der Stappen Uitvaartverzorging. Van der Stappen was already co-owner of both funeral centres (with Yarden), which meant the sale was able to proceed quickly.

The seven crematoriums including the four related funeral centres are currently in the sales stage.

DELA will not acquire any economic interest or influence on the sold crematoriums and funeral centres in the coming decade without prior written permission from ACM. After the crematoriums have been sold, the ACM conditions related to preserving a free market will have been fulfilled.

As part of its financially independent recovery, Yarden maximised the value of around 390,000 package policies in the summer of 2019. From that time the policyholders had to pay additional costs due to the increased price of the funeral. In the period 2007-2018, Yarden unjustifiably considered a package policy as money insurance. This meant that the bereaved received too little remuneration for the insured services on a package policy. DELA is actively working on refunding the bereaved in these cases in the following ways:

• Funerals from July 2019 to December 2019
  Yarden had been working on refunding the bereaved in these cases since July 2019. DELA has actively continued this process and a number of people have been refunded.
• Funerals from 2 August 2021
  For deaths after the takeover date, DELA will fully compensate extra paid costs on the insured Yarden package funeral services from up to ten years after the takeover date if DELA’s own funeral company arranges the funeral. An added fee will apply after this date, taking into account that the average value of the package policy of Yarden policyholders is expected to rise in the coming years as a result of indexation.

In the long term the takeover offers various benefits to DELA policyholders, including the fact that premiums won’t rise and insurance conditions remain the same. The addition of Yarden also creates an even stronger collective in the Netherlands with:

• National coverage with own funeral centres and crematorium.
• Synergy and cost benefits.
• Extra chance of profit distribution: the cooperative capital is expected to grow due to extra premium income and investment results. While initially involving an investment, this is expected to pay for itself over time and become a benefit.  

The takeover saw the daily management of Yarden transferred to DELA. Yarden will be fully integrated within the DELA organisation and DELA is taking its time to ensure the process goes smoothly. The Yarden brand will gradually disappear from the market for insurance and funeral services. See the ‘Our people’ section of this report for details of the integration process in 2021.

Our people > Yarden integration

In this annual report, DELA presents as many figures as possible on an integrated basis. Yarden was only active in the Netherlands so is part of DELA Netherlands. While not all figures are available and/or comparable in this year of transition, as many details as possible are provided in the tables.

The integration strategy can be summarised in the following points:

• Member and customer interests are leading;
• The DELA model is leading;
• 'Best practices’ from Yarden are taken on board and will be rolled out DELA-wide where possible;
• The head office is located in Eindhoven. The Almere location will be closed (in time);
• Personnel consequences for management/holding are inevitable. The Yarden conditions and Yarden Social Scheme apply;
• Products and prices of the funeral company will be harmonised;
• Yarden policies will be managed from DELA systems;
• We will study the options for commercial conversion from Yarden to DELA products;
• The Yarden brand will no longer be actively used and be phased out in stages.

The Netherlands: focus on ‘free market’ funerals
The funeral market is likely to grow in our core market of the Netherlands due to the expected demographical developments. In light of the scope of DELA’s current market share, it is difficult to see our share increasing further autonomously, although the Yarden takeover allowed us to make a significant leap in the year under review.

There is no reason to rest on our laurels regarding the market share in ‘free market’ funerals (funerals without related insurance). Although the first goals have been achieved, increasing a national market share takes time and restrictions due to the pandemic stilted growth. We will continue on the chosen path and increase our marketing activities in 2022.

Vergoeding Familie is a financial payment for the bereaved of a deceased person who held an in-kind policy but arrange the funeral with a party other than DELA. DELA does not offer a payment for in-kind policies as it arranges and pays for the funeral service via the premium. The premium is based on the cost price of the funeral. When families choose to employ another party than DELA to arrange the funeral, they receive a payment that is based on the cost price of the services if DELA would have provided them. Due to the procurement benefit of the collective, this is always lower than the market value. Obviously, this is a situation that DELA hopes to limit as our strategy focuses on members who explicitly choose an in-kind insurance policy, including the scale increase and sharing of fixed costs over a collective that is as large as possible. Studies show that these customers choose a local funeral business at an early stage. In the year under review, we started a study into the underlying motives and hope to learn more in 2022 in order to better inform the bereaved about our in-kind policy and what this means in practice.

Belgium: continued growth, start of cooperative
The market for funeral insurance in Belgium is still relatively young, with just 11 percent of the population currently having a policy. Maintaining growth over the years is the challenge here, as is realising synergies between insurance and funeral care – DELA is unique in Belgium as it provides both. Our insurance division  gives financial security for the funeral while our funeral services support the bereaved with funeral care, crematoriums, repatriation and after-care. Belgium has a capital insurance actively for sale. The funeral segment does not yet have national coverage.

In 2020 DELA made a plan to stimulate growth in the funeral segment. This involves additional acquisitions, providing extra services and improving the cost coverage and local cooperation in the areas in which DELA is active. We worked on implementing this plan in the year under review with three acquisitions of funeral companies. Considerable effort is going into expanding the number of takeovers in 2022.

Insurance is sold in Belgium via brokers, agents, partners and online. The latter channel is much smaller than in the Netherlands, responsible for less than 10 percent of policies. Limitations related to COVID-19 meant brokers were less active in 2021 than normal and DELA was not able to visit them as much. Nonetheless, DELA’s reputation remains strong. The company is top-of-mind and customers insured with DELA are convinced of its quality. The ‘saying goodbye’ theme is not as easily discussed in Belgium, however, with people living in Wallonia especially reluctant in this regard.

In late 2021, DELA entered into a partnership with insurer Ethias, which now includes the DELA funeral arrangement policy in its ‘Leven’ product range. DELA and Ethias share the same values and principles in how they deal with employees and customers. Moreover, Ethias also has a strong belief in solidarity and thinks beyond insurance alone.

Germany: plenty of room for development
DELA Germany now includes life insurance and funeral insurance policies in a market that is large and growing. A starting point for DELA is that all growth abroad must be at the service of the cooperative as a whole. Despite the realised growth, DELA Germany was not able to fulfil its own ambitions in 2021. Online sales growth was slower than expected. The web server and applications became operational later in the year than anticipated, causing a planning backlog which could not be recovered. Nonetheless, DELA Germany showed a healthy growth in 2021 and the prospects for 2022 are even better.

The size of our total portfolio, measured by the number of insured, is a major priority for DELA. We again achieved growth across all three product groups: funeral insurance, life insurance and savings plans. The increase of new policyholders occurred in all countries and contributes to the continuity of the cooperative.

Consolidated, the net growth was 1.05 million insured (2020: over 109,000). Although the Yarden takeover represented 90 percent, the portfolio also grew without the effect of the takeover; the net growth excluding Yarden was around 102,900, a little less than the previous year. In all three countries, the Netherlands, Belgium and Germany, the net growth excluding Yarden was over 30,000 insured. The strategy to increase international coverage in order to control growth at the DELA Group level was again effective in 2021.

Edzo Doeve, CEO

DELA Netherlands
The DELA funeral plan in the Netherlands saw further growth. The net growth was around 33,400 (2020: around 42,600). There was a high influx at the start of the year, which receded in the second half. DELA achieved good results in terms of customer retention.

Average funeral costs
DELA closely monitors average funeral costs in the Netherlands on an annual basis. Our policy is focused on our members, paying out insured claims and compensating for the inflation of funeral costs as far as possible.

The average funeral cost was €4,513 (2020: €4,383) a rise of €130 or 3 percent compared to the previous year (2020: a rise of €85/2 percent). By the end of 2021, the Yarden package policy represented a value of €3,340 and increased 2 percent in the year under review.

Inflation rise
The average inflation in the Netherlands, based on the consumer price index (CPI), was 2.68 percent over the 12 months of 2021. The inflation increased significantly over the year, however. In January, the inflation was at 1.56 percent compared to the year before, while in December it had increased to 5.71 percent.

DELA Belgium
Net growth of insured persons in the active insurance portfolio in Belgium was considerably higher in 2021, at around 36,400 (2020: around 28,600). Although a lockdown was still in place, DELA had relatively more opportunities to visit brokers and agents in the year under review than in 2020. We were also seeing the first effects of the broadening of the distribution.

DELA Germany
DELA introduced a funeral insurance policy in Germany in 2019 that covers funeral costs and includes a profit-distribution scheme giving policyholders the same benefits as Dutch members of the cooperative. Successful elements such as value retention and indexation are some of the other product characteristics. In 2021 we welcomed some 14,900 policyholders on balance (2020, the first full year since the introduction: around 9,700).

Net growth in life insurance policies was negative in the Netherlands: the portfolio saw a reduction of around 2,700 insured (2020: increase of around 2,500). In the year under review this score continued to be affected by the challenging housing market for first-time buyers and the ending of the compulsory life insurance for all NHG mortgages (mortgage with National Mortgage Guarantee) per 1 January 2020. This was implemented for existing NHG mortgages in early 2020 as well. Life insurance policies are mainly sold via intermediary channels. DELA is seeing an increase in competition in the Netherlands. DELA’s market share fell in 2021 at 4.7 percent (2020: 6.1 percent).

In Germany, where DELA launched its life insurance in 2018, the conditions are very different and in 2021 we welcomed around 21,700 policyholders (2020: around 28,000). While there is sufficient space in the market, the delay in automation was part of the reason we didn’t achieve our growth ambitions here. Moreover, DELA is not yet widely known in Germany, although the Dutch have a good reputation for being reliable and friendly. The idea of a cooperative is also attractive to Germans. In 2021 DELA achieved a market share of 6.5 percent with its life insurance policies, calculated based on insured capital (2020: 7.5 percent).

DELA also offers savings plans on the Dutch market, a good way for consumers to put money aside for the long term at a fixed interest rate of 2 percent. This product offers a worthwhile alternative to banks now that they offer such low interest rates. Savers deposit a periodic or one-off amount and receive a guaranteed return at the end of a term of at least 10 years. The net growth totalled around 10 percent with 4,800 policyholders (2020: around 4,700, a net growth of over 10 percent).

In the Netherlands, policyholders and co-insured individuals are members of the cooperative and therefore represent the collective 'owners' of DELA. The cooperative therefore has a total of around 3.18 million members.

Open to Belgian market
On 5 February 2022 the member council opened up the possibility of becoming a member of the cooperative in Belgium, a significant step in fully disseminating the cooperative principle in the country. The cooperative represents a system of standards and values related to how we do our work: a good balance between customer satisfaction, financial continuity, social awareness and employee satisfaction. Cooperative membership is aimed at intensifying relationships with our clients that are not limited to individual transactions.

Belgian members join the geographical division of Eindhoven and are represented in the general meeting via this division.

DELA Belgium aims to welcome some 200,000 customers in five years.

German market: build-up phase
Once the number of insured in Germany reaches a certain number – for now we are considering a cut-off point of 100,000 – we would like them to become members too. Although they are not yet members, they already benefit from a form of profit distribution (depending on the product) in the same way as the Dutch and Belgian insured.

The general meeting represents our members and is the highest organ of our cooperative. It has the final say in the policy and appoints internal supervisors and Board members. The way in which our cooperative is managed and our members’ interests safeguarded is described in the Governance section of the 'Governance & risk management' section of this report.

> Governance & risk management > Governance

The general meeting was held on four occasions in 2021.

The following items were discussed on 23 January:

• Welcoming new and saying goodbye to departing members and replacement members. A number of vacancies became available in late 2019 due to deaths. Two vacancies also became available in 2020 when members moved to an address outside of the geographical area they represented. In the general meeting, we said goodbye to Ms Ruesink (Achterhoek) and Mr Will (Rotterdam). Two replacement members became full members of their department: Mr W. ten Hooven (Achterhoek) and Ms A.L. Weijenberg (Drenthe, N.W. Overijssel). The following new replacement members were welcomed to the general meeting: Mr E. Ruesink (Achterhoek), Ms L. de Kinkelder (Noord-Limburg, Land van Cuijk) and Ms S.D.M. Duijsings-Mahangi (Rotterdam). One replacement member transferred to a different geographical department as a result of a move, namely Ms P.W.M. Zomer (from Groningen to Drenthe, N.W. Overijssel);
• The minutes of the Confidential Committee with the Executive Board and the Supervisory Board;
• DELA’s new course;
• The business plan and budget for 2021;
• Changes to the premium scheme to enable an extra increase of more than 0.75% in the case of a coverage lower than 120% plus negative interest in order to keep the cooperative’s solvency at a healthy level;
• The approval of the capital policy;
• The role of the Confidential Committee.

The proposed Yarden takeover was discussed on 3 May, including the fact that DELA had reached a new agreement with Yarden Association about the takeover of all shares of Yarden Holding NV. DELA had withdrawn from the process in 2020 due to the risk of claims. The improvement compared to the previous agreement means DELA is better protected against the legal risks of possible claims and any associated costs.

The takeover provides DELA members with access to a national funeral company with DELA’s quality of service. In addition, it offers greater security for the continuity of the larger policyholder database and the resulting cost coverage. While the financial benefits for the members will be limited in the short term, the takeover gives us a better grip on average funeral costs and will allow for a limited increase of these costs which in turn slows down the premium increase. The chances of profit distribution will improve over time. And DELA’s continuity is also better protected as we can achieve synergy benefits by maintaining a grip on the quality of our services and on funeral costs throughout the Netherlands. Extra synergy benefits will result from the merger of management departments and the development of a larger platform for digitising the insurance and funeral chain.

The following topics were discussed on 5 June:

• The DELA Group Annual Report 2020, including the financial aspects compared to the budget and the Supervisory Board report. The general meeting confirmed the financial statement and result appropriation, and discharged the members of the Executive Board for the realised policy and the Supervisory Board for its supervision;
• The confirmation of the Remuneration Report 2020;
• The decision-making process regarding the premium increase which, due to the rise in funeral costs, was 1.73 percent, and the decision-making process related to the increase in payments to the bereaved (when they choose not to use DELA’s services) to 1.1% at €2,953;
• The decision-making process for the DCP profit distribution. This was agreed at 0 percent.

The last general meeting of 2021 was on 4 September and included the following topics:

• Update on the pandemic and its impact on DELA;
• Update on the Yarden takeover;
• Appointment of Mr Van Bree as Supervisory Board member;
• Election of the Confidential Committee with Ms Spruijt and Ms Weijenberg receiving the most votes;
• Update on the strategic course;
• The Innovation department and its approach;
• Digitisation of customer services;
• Departure of Supervisory Board member Mr De Pender, who was appointed an honorary member of the cooperative.

To properly represent member interests, we conduct research and make choices with our members on matters such as products and operations. Consulting the members is an important aspect of this work with a cooperative panel organised and run by and for our members since 2010. The panel was converted into an online platform in 2015, allowing a larger group of members to contribute ideas. In late 2021 this involved some 2,300 members. During the year we asked the cooperative panel about the need for a DELA investment product, changes to the attire of funeral care colleagues, the story about the membership of DELA cooperative, and sustainability. The results of the latest survey are included in the CSR section of this report.

> Our organisation > Corporate Social Responsibility

In the Netherlands, the Net Promotor Score (NPS) fell to 56 (2020: 61), in Belgium it stayed the same at 70.Weighed by respondents, DELA had a total NPS score of 64 (2020: 66).

DELA Nederland
The Netherlands unfortunately saw a significant drop in the score for Customer Services. This was certainly not due to our employees, who put their hearts and souls into their work. The implementation of stronger security to access the online customer environment MijnDELA via two-factor authentication led to a large number of calls from policyholders and the bereaved. Not all customers were able to find their way to Customer Services directly and phone waiting times were high in peak times. This resulted in a fall in the satisfaction score to 39 (2020: 50).

Funeral care did managed to virtually maintain its previous high score at 72 (2020: 73). DELA applied higher safety standards than our competitors that further restricted our service provision during the pandemic. Taking this into account, as well as the difficult working conditions, our score can be considered more than satisfactory.

DELA Belgium
The funeral centres in Belgium scored the highest of all parts of the organisation in 2020 and even managed to improve further in 2021 with a score of 82. According to our clients this high and stable score (even during the second COVID wave) is the result of a humane, respectful and experienced approach.

Customer Services realised a spectacular rise in satisfaction levels, with the NPS going up 15 percent to a score of 68.

DELA owes its success to a combination of insurance and funeral services. Our employees offer concrete help, supporting members and their relatives with advice and assistance.

DELA Netherlands
In 2021 there were around 171,000 deaths in the Netherlands (2020: 169,000). DELA arranged some 42,400 funerals (2020: approx. 38,100). This gave DELA a market share of 25 percent (2020: 23).

The share of free market funerals in the Dutch market was 5.1 percent in 2021, the same as in 2020. Free market funerals involve cases in which the deceased is not insured with DELA. In 2021 DELA arranged over 5,000 of these funerals (2020: 4,844). DELA had already established a new policy for serving the market for private funerals in 2020 with specialised funeral providers (free market specialists). Preparations were made during the year under review to strengthen our commercial marketing activities in this segment in 2022.

DELA Belgium
Belgium recorded some 112,000 deaths in 2021 compared to nearly 127,000 in 2020. In the reporting year, DELA arranged approximately 12,000 funerals (2020: approx. 13,400), representing a market share of 11 percent, the same as in 2020.

The funeral company in Belgium is mainly focused on funerals for non-insured people. A reason for this is that the insurance portfolio in Belgium is younger than in the Netherlands; we’ve only been active here for 30 years, compared to 85 in the Netherlands. Growth should happen autonomously and via acquisitions. In addition, DELA Belgium aims to strengthen cross-pollination with policyholders as DELA can arrange funerals upon their deaths.

DELA Netherlands
In the Netherlands DELA arranged around 32,700 cremations in 2021 (2020: 26,300). This 25 percent increase is entirely due to the takeover of the Yarden crematoriums.

DELA Belgium
In Belgium, DELA arranged around 7,700 cremations, an 18 percent fall compared to 2020 (approx. 9,300). The reduction was larger than the 12 percent fall in the number of deaths, representing a limited loss of market share. This can be explained by fewer cremations in Bruges due to the opening of a competing crematorium in Oostende, which started carrying out cremations in 2021.

Resomation is a new method that uses liquid to dissolve the body in three to four hours. Although yet to be permitted in the Netherlands, the government aims to change this with an amendment to the Dutch Burial Act. The existing options are burial, cremation or donation to science. Commissioned by the Interior Ministry, the Health Council set up an assessment framework and advised including resomation in the new Burial Act. Like most people in the Netherlands, DELA is positive about the option of resomation. Yarden had been advocating the legal use of this method for many years, and DELA has continued on this path since the takeover. The first resomator in the Netherlands is located at the Nieuw Eykenduinen funeral centre in The Hague.

The hardest time for bereaved relatives often starts after the funeral. In addition to processing grief, they have to arrange numerous practical, financial, legal and administrative tasks. A helping hand is always welcome at this time and that’s where DELA comes in. Although we cannot lessen the grief, we can arrange matters properly and help people get on with their lives. Offering practical help and tips based on individual situations, our aftercare service consultants offer support with issues such as:

• What do I need to do to properly arrange my inheritance?
• Can descendants refuse an inheritance when there are debts?
• Until when will the pension of the deceased be paid?
• Which subscriptions should be cancelled?
• Who can I talk to about processing grief?

If required and desired, we can bring in specialists such as notaries, grief counsellors and tax consultants, and inform descendants of the related costs. Support by the care desk is free of charge for insured persons.

DELA Netherlands
Aftercare is a standard element for policyholders in the Netherlands and for all funerals arranged by DELA.

Nadia Gandon-Najib, funeral director DELA Netherlands

DELA Belgium
Aftercare is a standard part of the DELA funeral care insurance in Belgium and of all funerals arranged by DELA. Some 26 aftercare consultants are available every day to help with a variety of administrative and practical issues related to the death of a loved one.

Although saying goodbye in a pleasant ambiance with friendly, involved employees doesn’t lessen the grief, it does help generate nice memories of a sad time. DELA does everything in its power to ensure a dignified farewell.

DELA Netherlands

At the start of 2021 DELA had 54 funeral centres and 22 crematoriums in the Netherlands. The latter includes a 50% stake in the La Grande Suisse crematorium in Maastricht that was opened in 2021 and is operated together with Monuta.

The Yarden takeover in 2021 initially resulted in an increase of 47 funeral centres and 24 crematoriums.

Due to the conditions for approval of the takeover imposed by ACM, DELA announced in August 2021 that it had sold two Yarden funeral centres: one in Veldhoven and the Goemans funeral centre in Venray.

On balance, DELA ended the year under review in the Netherlands with 99 funeral centres and 46 crematoriums.

The takeover approval conditions mean DELA must sell another six Yarden crematoriums and one DELA crematorium in 2022. These crematoriums also include a total of four funeral centres.

The ACM terms for the Yarden takeover will have been met once these transactions are completed. On balance, this means that the Yarden takeover still brings in an additional 41 funeral centres and 17 crematoriums. DELA can therefore offer policyholders a better national coverage in the Netherlands with its own funeral centres and crematoriums. After the transactions have been completed, DELA will have 95 funeral centres and 39 crematoriums.

Development of new crematorium: Hoentocht, Groningen
DELA is developing a crematorium in accordance with the latest sustainable insights at Hoendiep in Groningen. The crematorium will use an electric furnace instead of gas, with the entire building being constructed following a circular approach: all building materials will be reusable elsewhere in the future. The building will have a solid wooden structure and wooden roof construction. 

Crematorium Hoentocht, Groningen
 

Renovation of crematorium Den en Rust, Bilthoven
The Den en Rust crematorium in Bilthoven started large-scale renovations in 2021 and was closed for a large part of the year as a result. Other DELA locations in the area took over its tasks, and funerals at the nearby cemetery took place as normal.

The building was mainly renovated, optimised and made more sustainable inside. The entire interior was renewed while keeping the main features intact. The crematorium was designed by architect F.J.A. den Tex in 1936 and is famous for its stained-glass angel by artist Nico Schrier. It also offers visitors a wonderful view over the old beech lane and its seasonal colour changes.

The renovation brought significant improvements to the building’s sustainability, including two electric cremation furnaces, a new climate system and solar panels. More plants were added to the garden to let the building blend into the surrounding landscape, and the reception area was extended. The renovation started in late June and continued throughout the summer. The crematorium was reopened in March 2022.

DELA Belgium
DELA Belgium has 64 funeral centres at 122 locations and three crematoriums in the cities of Bruges, Mons and Charleroi. The latter involves a 30% participation. DELA also has its own repatriation centre ‘Brussels Airport Mortuary’ in Zaventem.

Stad Hasselt takes over DELA crematorium
The council of the Belgian city Hasselt took over DELA’s crematorium there in 2021, the result of a mediation trajectory that the two parties completed in the year under review. The takeover marked an end to a legal battle that had been ongoing since 2013 and both parties were relieved to reach an agreement. The future of the crematorium is now secure which is important to the residents of Hasselt and Limburg. DELA employees are included in the takeover and can therefore safeguard the continuity of the services provided.

By decree dated 16 January 2004 the management of a crematorium in Belgium is exclusively the task of a municipality or inter-municipal partnership. This is also the case in Hasselt. The cremation activities were performed by the city services, while the crematorium itself was owned by DELA. In 2013 the former city council decided to take the cremation part from DELA. As no agreement was reached, the legal procedures soon started stacking up.

The city of Hasselt is now the full owner of the crematorium and will operate it in its entirety. The agreement is based on a takeover sum of €11.4 million.

Company takeover
In 2021 DELA took over three funeral companies in Belgium. We are proud to announce the addition of Vanoppen-Moors in Opglabbeek, Bossut Dumont in Comblain-la-Tour and Luyts in Essen.

Brussels Airport mortuary
DELA has its own repatriation centre near Zaventem Airport, called Brussels Airport Mortuary, where our employees help the bereaved with repatriation to and from other countries. Thanks to our extensive network, DELA can ensure a smooth process with respect for religion, customs and rituals of the deceased and their families. DELA guarantees a personal, humane approach. The location has its own viewing room and auditorium for farewell ceremonies. In 2021, the centre realised 711 repatriations (2020: 713).

Flooding and evacuation
The services at some places in Belgium were suddenly interrupted by major floods in July. Five funeral centres were evacuated and closed as water entered the buildings after the Meuse river overflowed. The second head office of DELA in Liège was also evacuated and employees continued their work from nearby DELA locations. The start of a major repair operation followed. The employees are currently still working from other locations while the buildings dry before the renovations can be completed.

DELA Germany
DELA has been active as insurer in Germany from its Dutch company since 2018. From the office in Düsseldorf we are realising substantial growth in the German market. DELA Germany provides various types of insurance via brokers, and directly via its online channel.

DELA carries out structural reputation research in order to understand how we are perceived by society. Our reputation is determined by all the things we show, say and do together. It is our daily behaviour that inspires confidence. A good reputation is of vital importance to us as DELA's raison d’être both as an insurer and funeral service provider revolves around trust. We measure the development of our reputation periodically.

We are proud that DELA has built up a great reputation over the decades and also enjoys excellent brand familiarity.

DELA Netherlands
In the Netherlands we measure our reputation using the RepTrak methodology, a survey developed by the Erasmus University in Rotterdam and the Reputation Institute and used all over the world.

Our reputation in the Netherlands improved even further during the year under review with our score among the general public rising to 76 (2020: 74). Our reputation among members rose to 84 (2020: 82). The fact that we are still managing to increase our already high scores is a source of pride. Our reputation among non-members increased to an annual average of 71 (2020: 69). Part of the challenging goal we set ourselves until 2020 was to achieve a monthly score of 70 among non-members at any time throughout the year. We realised this several times in 2020 and over the entire year in 2021.

DELA Belgium
DELA’s reputation also increased in Belgium, where it is measured as the prompted awareness generated by the question “‘Do you consider DELA to be the leading funeral specialist?”.

An already high score of 70 percent in 2020 increased to 73 percent in the year under review.

DELA was established based on a deep-rooted social engagement which is still part of the company today. This is why the DELA Fund supports social initiatives in the Netherlands and Belgium: by doing something good for other people together, we aim to make life more meaningful.

DELA has been connecting generations and helping people share memories, experiences and values for 85 years

With the DELA Fund and the new ‘Connecting Generations’ theme we aim to actively bring generations together, learn from each other and make use of each other's knowledge. As a cooperative, we wish to contribute to an inclusive society in which everyone matters and can participate. The fund organises and supports initiatives between different generations that might not otherwise arise spontaneously in everyday life. This will be defined as any activities where at least two generations are brought together. These unique encounters will contribute to the feeling of interconnectedness and help people share with each other.

DELA has been the main sponsor of the Roparun, a relay race of over 500 kilometres from Paris, Bremen and Almelo to Rotterdam since 2020. Teams of participants run the race to collect funds for people suffering from cancer. Due to COVID, the latest edition on 2 and 3 October had a different setup with the route going via Limburg and North Brabant. Some 175 teams took part, ranging from neighbourhood associations and groups of friends and colleagues to employees from DELA Netherlands and DELA Belgium. All runners collected funds in their own circle and Roparun 2021 raised over €2 million for organisations and projects involved in palliative care.

To understand the opinions of our people and see where we stand compared to companies of a similar scope, DELA performs an annual employee survey focused on how satisfied the personnel is with DELA as an employer.

Until 2020 this survey was performed annually by Great Place to Work (GPtW). After DELA had been named 'Best Workplace' in the Netherlands for three consecutive years, and improved its score in Belgium four years in a row up to a third place in 2021, it was time to switch to something new.

Starting in 2021 our employee survey is carried out by Effectory.

We began in the first quarter with a test among 85 employees from seven departments. The survey focused on various sub-aspects with the employer Net Promotor Score (eNPS) as the main indicator.

The results of the test were positive and DELA decided to perform the survey throughout the Netherlands and Belgium. The response in the organisation was good at 79 percent in the Netherlands and 83 percent in Belgium, and significantly higher compared to the other participating companies (the Effectory index).

Over 2021 DELA scored an eNPS of 51 in the Netherlands and of 54 in Belgium. These are high scores of which we can be proud.

A surprising element was the fact that the top sources of pride and points for improvement were identical in both countries. Employees are most proud of – in this order – their co-workers, the customer focus and cooperation. The top three improvement points are reducing work pressure, improving communication and improving the assessment process and remuneration.

DELA Netherlands
The Dutch employees gave DELA as an employer 8.4 for enthusiasm, 8.0 for social security, and 7.7 for employership.

DELA Belgium
The Belgian employees scored DELA 8.2 for enthusiasm, 7.8 for employership and 7.3 for change management.

DELA clearly scored above average in the Effectory survey, although has yet to feature among the top three companies with the best score. DELA’s enthusiasm score was in the top three. While we scored above the benchmark for each category, various new ways in which we can improve were indicated – and that’s what the survey is all about for DELA.

DELA Belgium did participate in the GPtW Best Workplaces in 2021, ending in third place (2020: fourth). We are very proud of this achievement, a token of appreciation that shows our employees feel heard.

The pandemic affected us during different periods and in various ways and levels of intensity. The extra work pressure due to the higher mortality rates, the consequences for customer contact, the strict regulations for funeral services, the absence of staff; the film from 2020 replayed itself. We saw the same things happen and it took a lot of energy to scale-up again and comply with the preventive measures. But – as is our duty – we gave it everything we had.

Employees had to continuously adapt and make difficult choices. Many staff with young children had to combine their work with child care and home schooling. It was hard for our employees, who often felt they were not performing to the best of their abilities in all these aspects. DELA tried to provide space, expressed the need for us to accept this was a phase where we couldn’t deliver as much as we wanted to, and emphasised the importance of making room for ourselves and our loved ones. Managers were open to discuss the issues and put a strong focus on the wellbeing of team members. Understanding the situation of each individual was a priority and made it impossible to always maintain unilateral rules or regulations. Flexibility, creativity and solidarity were required.

We received many questions from our staff about vaccinations. A major one was whether people in the funeral sector would receive priority in the vaccination process, which was unfortunately not the case. Many colleagues also asked about the quality of the vaccinations and other medical issues. DELA chose to see the vaccination as voluntary, not compulsory.

It was essential that the people working from home had a proper and healthy environment. Recognising that their posture, work place and surroundings impacted their vitality in the short and long term, DELA facilitated office furniture for people at home.

Despite all the measures taken, the ongoing pandemic had a direct and indirect impact on the absence due to illness in our organisation, even more so than in 2020.

One of DELA’s goals is to help every employee stay physically and mentally healthy and capable of quality work, now and in the future.

Absenteeism is relatively high among staff in the funeral sector, not least because of the challenging nature of the work. Our employees are confronted with a lot of grief every day and this can be emotionally draining. In addition, working hours are irregular and a certain degree of flexibility is required, risking physical fatigue. With this in mind we have developed an attendance and reintegration policy, a tool to help prevent employee absenteeism as much as possible. It is also a guideline for our managers, whom we encourage to keep in touch with employees that stay at home.

DELA applied the ‘take control’ model to absence through illness. This model was introduced two years ago in the conviction that, while everyone can become ill, being absent is a choice that should always be made in consultation. The essence of a behavioural approach to the issue is that managers and employees discuss absenteeism and what option is most suitable. This approach appeals to employees’ own responsibility, increasing their enjoyment in their work.

Unfortunately, we saw an increase in absence due to illness across all countries during 2021. A relatively high number of employees suffered from stress due to the continued uncertainty caused by the pandemic. Covid among our staff and the need to quarantine also increased the absence figures. Yarden was in financially dire straits before the takeover and already experienced above average absence due to illness. The reorganisation as a result of the integration also probably played a role in this once the takeover was announced.

In the Netherlands (excluding Yarden) 32 accidents were reported to the Arbo health & safety service (2020: 13) in 2021. They can be divided into two categories: occupational accidents and regressions. Occupational accidents take place at the workplace, regressions involve accidents caused by third parties (often in traffic). During 2021 23 occupational accidents (2020: 11) and 9 regressions (2020: 2) were reported.

In Belgium, an occupational accident is deemed to involve an event that leads to at least one day of absence. An incident indicates that something has occurred which does not lead to absenteeism. Both are monitored closely and in 2021 there were 10 occupational accidents (2020: 6) and 6 incidents (2020: 9).

A great deal of energy was needed for the Yarden integration trajectory in 2021 and this will not change in the coming period. We appointed 13 workflows and workflow leaders for the sectors and staff departments. The main topics in meetings are the integration plan and the setup and guidelines from the various main flows (HR, IT, Communication and Finance).

Yarden employees have been given access to any open vacancies since the takeover. The internal publication term is seven days and staff from DELA and Yarden have priority of application. Applications from Yarden colleagues are considered internal applications so, when suitable, have priority over external candidates. If no internal applications are submitted by the time the internal publication term has passed, DELA publishes the vacancy externally via the website (werkenbijdela.nl). People who do not currently work for DELA are then welcome to apply.

We also made some new formation plans in 2021:

• The integration of Funeral Care and Funeral Services was a major operation. The merger of Yarden Uitvaartfaciliteiten BV and Yarden Uitvaartzorg BV with DELA's Funeral Care and Funeral Services resulted in a formation of 393 FTEs, including externals in Funeral Care and 599 FTEs including externals in Funeral Services (both figures rounded off).
• The integration of P&O Yarden in Almere with HR DELA in Eindhoven resulted in the formation of 28 FTEs (rounded off).
• The integration of Finance & Control Yarden in Almere with Finance, Data & Control DELA in Eindhoven resulted in the formation of 39 FTEs (rounded).
• The integration of Yarden’s Real estate & Facility Management department with Dela Facility Services resulted in the formation of 25 FTEs (rounded  off).
• The integration of Yarden’s IT departments with the DELA IT departments in Eindhoven resulted in the formation of 205 FTEs, of which 157 internal (rounded  off).
• The integration of Yarden’s Commercial Affairs, Sales & Support, Online Sales and Marketing Communication departments within DELA’s Cooperative & Insurance sector in Eindhoven, comprising Indirect Advice & Service, Marketing and Knowledge Centre, resulted in the formation of 61 FTEs (rounded off).
• The integration of the Yarden Contact Centrum (YCC) with DELA’s Customer Contact Centre in Eindhoven resulted in the formation of 170 FTEs, of which 106 were internal (rounded off).

The aforementioned integrations were discussed with the works council which gave a positive advice. The formation plans of the Corporate Communication, Internal Accountants Service, Legal Affairs, Risk Management, Tax and Financial Risk Management & Actuarial departments did not require their advice because these activities were either not carried out, were carried out by Yarden employees with whom we have already discussed their departure, or were performed by externals.

DELA finds it crucial that our employees reflect the full diversity of the society in which we operate. There is a relatively high proportion of women working at DELA – some 66% of all DELA Group employees are female. In leadership positions, the 30% minimum rule for women and men is respected everywhere except the Executive Board. There were no changes in 2021 and the diversity goals will be taken into account when future changes are made. We also consider it self-evident that DELA as an employer promotes other types of diversity, including hiring employees who have trouble finding suitable work.

The policy we apply is to exclude no one. Everyone is welcome at DELA, regardless of rank or status. Most job openings are posted via the websites www.werkenbij.dela.nl and www.delajobs.be , with partners sometimes being employed for the acquisition of specialist functions. In all cases, our core values take priority: whether people fit in with the company is more important than whether they are able to do something well – because we can teach people how to do something but not who to be.

Around 3,350 candidates applied to DELA in 2021 (2020: around 2,600). DELA Belgium welcomed some 1,300 candidates (2020: around 1,200).

Over the course of 2021 it became increasingly clear that the scarcity in the labour market is increasing, with vacancies in IT particularly hard to fill. Acquisition and labour market communication is now more important than ever.

Employees serve as the driving force of our cooperative. Their shared quality is that they are intrinsically motivated to do the right thing. Engaged, honest and entrepreneurial – this philosophy forms the foundation from which DELA approaches every challenge, including in the development of working conditions for employees.

DELA Netherlands
Changes were implemented to the working conditions package of DELA Netherlands as per 1 January 2022. DELA aims to conform to the market with regard to working conditions at all levels in the organisation, and to be unique where we can do so responsibly. The following changes were made:

Individual Choice Budget
The Individual Choice Budget enables employees to align their working conditions to their personal wishes and needs. Instead of fixed reward components, employees receive a budget that can be spent as they wish. The part of the budget that has not been used by the end of the calendar year is paid out as a gross amount. The holiday allowance, 13th month, the value of six non-statutory days off and the contribution to health care costs make up for 19.2 percent of the salary, and can be used for cash payment, the purchase of extra leave days or the payment of an e-bike or trade union contribution. This means employees don’t have to wait until May to receive their holiday allowance.

Individual Vitality Budget
DELA believes it is important that employees feel healthy and fit, continue to develop themselves and take responsibility for their own long-term employability. To stimulate this, every employee receives an Individual Vitality Budget of €750 gross a year, regardless of the part-time factor. This can be spent on items or activities to benefit health and development such as gym memberships or yoga courses. Any part of the budget not paid out by the end of the year expires.

Variable pay
With the implementation of a new Learning and Performance Management System on 1 January 2022, we decided to scale down the variable pay scheme in its current form. DELA presumes its employees perform well and continue to develop themselves. Another trajectory will be taken if that’s not the case.

Leave
DELA applies various types of leave in the Netherlands, such as care and maternity leave. Changes have been made to various schemes and from 1 January 2022 employees can take a sabbatical to contribute to a healthy work/life balance. The scheme allows employees after their first five years of employment to take a partially paid sabbatical of at least two and at most six months every seven years. In the first and second month of their leave they receive 50% of their salary.

Vitality of older employees
To prevent absence due to illness or reduced working capacity of employees five years prior to their retirement, DELA has a new durable policy: working 80 percent of their current working hours at 85 percent of the current salary and with a 100 percent build-up over the current salary. This is a good working condition in view of the long-term employability of older employees.

New pension scheme
Employees joining the work force as of 1 January 2022 are subject to a new pension scheme. A regular premium contribution of 22% is made, regardless of age (so the age scale no longer applies). DELA pays 16% of the premium as employer while employees contribute 6%.

DELA Netherlands started a cultural enrichment trajectory in 2021.

DELA formulated a new strategy and a new challenging goal for the 2021-2025 period that starts from the customer experience. Recognising that culture is mainly decisive for the success of an organisation, research was carried out into whether our culture supports the new strategy. Employees were asked to complete surveys and the Executive Board, all managers and a large number of employees took part in a culture workshop in the first half of the year. The workshops provided insights into the results of the research by pointing out behavioural characteristics of the current and desired culture. Participants valued the workshops as they learned more about culture and saw that it was recognisable throughout the organisation. It also made them think about their own behaviour, how they could maintain certain aspects of the culture, and what is necessary to enrich our culture in order to realise the challenging goal.

The main findings from the cultural research were as follows:

• DELA has a family culture, characterised by the concept of ‘doing things together’. We are proud of our people-focused culture and passionate about our field. There is a strong sense of loyalty and tradition is seen as important. Everyone is welcome to provide input.
• Having a strong family culture also has its downsides. Everyone being able to provide input means it can sometimes be difficult to make decisions. We don’t always feel the openness and confidence to give feedback or express what we really feel because maintaining a good atmosphere seems more important.
• The control culture is also fairly strong, characterised by ‘doing things correctly’. We are meticulous and therefore sometimes avoid risks. When in doubt we tend not to act because we are afraid to make mistakes, preferring to ask about the policy or regulations. People are therefore less curious and may not use enough of their knowledge and strength to guide, learn and improve.

All things considered, we find it necessary to shift to an external culture while retaining the good aspects of this family culture. An external culture involves ‘doing new things and doing things in a purposeful way’. We will take the wishes of our clients as the starting point rather than our own vision or expertise. We believe this is necessary to stay meaningful to customers in a rapidly changing world.

Roos Fleuren, HR director DELA Nederland

DELA Netherlands and DELA Belgium each have their own works council (OR).

In 2021, the works council provided advice on the following subjects:

• The commissioning of employee surveys by Effectory starting on 1 October 2021 and stopping the use of Great Place to Work (GPtW).
• The implementation of the Individual Choice Budget.
• Halting the attendance premium and replacing it with an Individual Vitality Budget.
• Changes to the various types of leave.
• The vitality policy for older employees.
• A new pension scheme for employees hired from 1 January 2022.
• Halting the variable pay scheme and increasing the fixed salary by 4.2% for employees in function group 1 and 2.8% for function group 2.
• Changing the opening hours and therefore working hours for the DELA Digital Dialogue Team at weekends from 09.00 to 17.30.
• Specific changes to the absence due to illness policy.
• Changing the policy for employees of 60 years and over to a policy for employees who, at the starting date, have an age that is up to 7 years younger than the applicable retirement (AOW) age.
• Halting the social framework for people with (long-term) invalidity. Underlying reason is that it is in fact the same as the provisions in the Dutch Eligibility for Permanent Invalidity Benefit (Restrictions) Act when it comes to the first and second track.
• Specific change to paid days off and the value thereof when employees don’t work on a holiday that falls on a weekday.
• The new Performance Management System.
• Outsourcing the vaccination process to a third party.

The works council provided advice on the following matters in 2021:

• Taking over 100% of the shares in Yarden (holding, insurance company and other subsidiaries) and fully integrating them within 1.5 years.
• Legal merger of Yarden Verzekeringen NV (acquired company) directly after closing with DELA Natura- en levensverzekeringen NV (acquiring company).
• Providing job security for DELA employees via a social framework.
• Additional provisions that guarantee similar working conditions.
• The formation plan for Funeral Care/Funeral Services and the integration of Yarden P&O in Almere into DELA HR in Eindhoven, of Yarden Finance & Control in Almere into DELA Finance, Data & Control in Eindhoven, of the Yarden Real Estate & Facility Management department into DELA Facility Services, of the Yarden IT department into the DELA IT departments in Eindhoven, of the Yarden Commercial Affairs, Sales & Support, Online Sales and Marketing Communication departments of into DELA’s Cooperative & Insurance sector in Eindhoven, and of the Yarden Contact Centrum (YCC) into DELA’s Customer Contact Centre in Eindhoven; all integrations based on the formations indicated in the Our people > Yarden Integration of this report.
• Engineering and technical measures for the head office.
• Cancelling the concept function for Facility Services employees and immediately offering those involved the suitable function of Concierge.
• Transferring the knowledge bank coordinator to the Support team on 1 July 2021.
• Splitting the Bergen op Zoom and Roosendaal funeral centres from those in Breda, Oosterhout and Raamsdonkveer, and bringing them under the management of an already active and established part-time interim manager.
• Temporary placement of part of the employees from Tribe Business 1 under the management of the Business Change Team so the line manager can also take on the programme management of Dolfijn.
• Placing part of the employees of Tribe Business 2 under a new temporary external manager.
• Temporary placement of the Service Desk under the project manager from Staff Funeral Services this year.
• Stopping the use of the thanatopraxy technique and the consequences for the embalmers.
• Partially changing the distribution of tasks and management in HR.
• The proposed decision related to acquiring shares in and alignment with Salarise BV to allow DELA employees to convert any current credit into an attractive redeemable loan.

The works council approved the following in 2021:

• Reappointment of the auditor for DELA Enterprises, DELA Investment Belgium and DELA Real Estate Belgium.

DELA is in the midst of a large-scale, multi-year change programme to replace our core systems and implement new automation. The starting point is that DELA does not want to become a digital insurer or funeral services provider: the digital, technological developments are to benefit our members, customers and employees so that we can provide more personal quality and customised solutions. To further increase our flexibility, we must reduce costs, prioritise and make clear choices.

The extent in which we successfully implement the digital transition is called our ‘digital mastery’. It involves the way in which we develop, deploy and benefit from our people, tools and systems to realise a successful and controlled digital change.

DELA has various IT change programmes, two of which are described below: the largest project and one that was discontinued in 2021.

Dolfijn
The Dolfijn programme is initially intended to replace the now outdated insurance systems with new technology over the coming two to three years to make DELA ready for the digital future. Key benefits Dolfijn should help us achieve include improving data quality and supporting a more automated processing.

Dolfijn was temporarily halted in 2020 after a second opinion advised us to restructure the programme and reduce its complexity. After completing many preconditional systems and making various improvements, Dolfijn was restarted around the end of the year.

The first functions went live in June 2021 and the new target architecture, which forms the basis for the insurance chain and will also be relevant for the funeral business, proved effective. We also made important steps in making our planning more reliable, and quality control was improved. We are still working on resolving various performance issues, as a result of which we postponed the migration of the Deposito module to 2022.

The IT change calendar was reprioritised in 2021 too. The goals from a broader context are:

1. Replacing and moving away from the older IT environment to ensure no resources are lost on its maintenance.
2. Enhancing our operations in several specific points.
3. Implementing the move towards future Total Cost of Ownership (TCO).
4. Digitising the insurance chain.
5. Preparing the conversion of Yarden to the DELA Netherlands systems.
6. Preparing the implementation of specific IT solutions for DELA Germany and Belgium.

In broadening the goals we reconsidered in 2021 how we could make the cooperation in the programme as successful as possible. It was clear that the previous setup was not in line with a broader change task. The new focal point in the new setup is a more intensive cooperation between business and IT. A team of quartermasters set to work on further developing and implementing the new setup. Made up of people from both business and IT, the team offers more competences and focal areas than was previously the case. Business will indicate which functionalities are needed, and in which order. It will also steer towards attaining value by prioritising between management and change. IT will provide advice, accept and guide the development and implementation. The setup of the programme applies the SAFe® framework, designed to implement an Agile work method on a larger scale.

Olifant
As a result of our reprioritisation, the decision was taken in 2021 to discontinue the Olifant programme.

Our ambition is to continue to be the largest and best funeral business in the Netherlands. Project Olifant was therefore considering the following question: “How will people in the future arrange a funeral?” We are seeing major shifts in society toward a digital society. By anticipating this, we can ensure we are future-proof and can support our customers in the way they prefer. DELA offers members and policyholders the opportunity to record their wishes, arrange a funeral (or part thereof) and be remembered by their loved ones. The Olifant programme was aimed at detailing these wishes and translating them into processes.

The programme was stopped as the scope of the change calendar was too great and the consequences of the Yarden takeover, which were an extra addition, required too many resources. Continuation was not considered smart at this stage. While the wishes and solutions we came up with will remain focal points in future automation, the development of a specific application for the funeral company was halted. The total activated costs for the funeral administration system of €6.1 million were therefore depreciated and fully charged to the result.

There is a dilemma with change management. On the one hand we wish to help members and policyholders quickly and, preferably, via the desired channel and at the desired time. At the same time, we have to work cost-efficiently in order to benefit these same members and customers. Providing basic processes online enables employees to perform tasks with more added value.

In 2021 we decided to stop including the phone number on letters to policyholders. We made significant investments in the ‘MijnDELA’ site, where customers can find information themselves and make various changes. After a relatively high number of complaints was received an external bureau was asked to investigate the matter.

The research showed that not everyone was able to easily find the customer services phone number on the website. The two-factor authentication, an added and required extra security measure for logging into the website, generated more questions. The increase in activities due to the pandemic and the lower occupancy in customer services (also due to COVID) resulted in a stagnation of the services at the wrong time.

The balance between visibility of the phone number and guiding customers to the right place to find answers or arrange matters themselves looks to be fine on the DELA website. There are ways we could better meet customer expectations, however, and we are currently working on improving these.

The conclusion is that DELA is taking major steps in online self-service, was well reachable in the past three years, and significantly increased its response time. A large part of our members use and appreciate MijnDELA. In the meantime, members are also increasingly using the chatbot. Some members, however, still prefer communication on paper and simply referring them to our service and contact page results in a less positive experience for this group in particular.

DELA will continue to develop MijnDELA and new types of technology to meet customer expectations. At the same time, we are watchful and curious about customer experiences. Structural attaining the optimal balance of digital progress, customer friendliness and reachability are very important to us.

Cyberattacks have become increasingly common in the countries in which DELA operates with companies being affected by ransomware or other hacks on a daily basis. Cybersecurity is a vital focal point for DELA and we don’t want to provide too much information about our measures. We can, however, share that Board members and information owners played 'Game of Threats' in two teams. Some examples of issues raised in this strategic game were 'How does an attack work?', ‘Which cyber threats does DELA face and how can we protect ourselves against them?', and ' What strategic choices can we make to increase our cyber resilience and counter attacks?'. The game is aimed to increase awareness of and insight into the complexity of cyberattacks and both teams had to make quick decisions based on minimal information. These were then evaluated to give participants an insight into the consequences of their choices.

While DELA has achieved success in offering insurance and arranging funerals, the ambitions of our cooperative extend beyond that. How could we use the power of solidarity to make other positive contributions to society?

DELA Cooperative is looking for new initiatives that resolve social issues by connecting people and organisations based on equality and solidarity. This means that everyone is part of a greater entity to which they can turn when needed. DELA hopes to increase the interconnectedness in society and give power back to the people. Our exploration showed that the power of solidarity can be a major connector for social challenges in which social connections are increasingly rare. In concrete terms we worked on two propositions in 2021.

Salarise
DELA acquired shares in and is working with the peer-2-peer platform Salarise, which helps employees become financially healthy by trading in expensive loans and debts for loans at lower interest rates. Participants then pay off their loans and start with a clean slate at the end of their payment term. Salarise is not a bank – it is a company that facilitates investors to invest in making healthy loans more accessible.

www.salarise.nl

Fello
Fello connects organisations and their care professionals to support the important task of caregivers in society. It is available to everyone caring for a loved one who could use some support, offering one-on-one coaching to all employees who also act as caregivers.

www.fello.nl

Sanne Geurtsen, Manager Dela Innovation Lab

DELA was established based on the strength of the collective. We take care of each other and that also means contributing to a better world. With this in mind we make responsible choices that help us leave our planet as clean and fair as possible to future generations.

In 2021 a CSR policy was established for DELA Cooperative at the group level. Our goal for 2030 is to:

• Make a positive impact on people and the environment with our products, services and operations.
• Ensure that this positive impact is seen by our members and society as a whole.

The CSR programme was developed in line with this ambition and focuses on the following five pillars.

1. We aim to reduce the CO₂ emissions of our operations and services as this greenhouse gas makes a major contribution to global warming. The Dutch National Climate Agreement states that the Netherlands will produce 50% less CO₂ in 2030 compared to 1990. DELA is ambitious and aims to reduce its CO₂ footprint even faster, namely by 100% come 2030. Our goal is to have all our operational activities be climate-neural by 2030. This will allow us to comply with the Paris Agreement and the Climate Agreement, and contribute to Sustainable Development Goal (SDG) 13 on climate action.

DELA is increasing the sustainability of its investment portfolio in line with the European climate agreement. We are reducing CO₂ emissions related to our investments and keeping ESG factors in mind. Our ambition is to reduce the net emission of greenhouse gases (CO₂ equivalent) by 50 percent by 2030 compared to the net emissions in 2019. DELA reduces negative impacts and enhances the positive impact of its investment portfolio on the world. In doing so we contribute to the Paris Agreement, the Dutch Climate Agreement, the UN principles for Responsible Investment, SDG 7 (Affordable and clean energy) and SDG 13 (Climate action).

We strive to use finite resources in a smart way and are studying how best to minimise our material consumption. One way in which this is achieved is by using biobased and recycled materials, which also reduces the amount of waste we produce. Little by little, we are ensuring that our materials cause less harm and may even have a positive impact. Our ambition is to only use sustainable materials and resources by 2030, helping prevent the exhaustion of scarce resources and contributing to SDG 12 (Responsible consumption and production).

We find it important that people from different backgrounds, levels and ages feel welcome in our organisation and have the opportunity to contribute their own talents. It is this mix of talents that allows us to provide better services which are unique to every individual. DELA asks its suppliers and partners to apply the same approach. Our ambition is that everyone, regardless of age, gender, invalidity, race, ethnicity, origin, religion or status (economic or other) feels welcome at DELA in our role as employer and service provider. We research this aspect on a structural basis using employee and customer surveys. All this and more allows DELA to contribute to SDG 8 (Decent work and economic growth) and SDG 10 (Reducing inequalities).

Every funeral DELA arranges is unique, personal and of a high quality. At the same time we want to ensure we work with sustainable products and maintain partnerships with the right suppliers. We are a catalyst and innovator in the sector with regard to eco-friendly funerals, and can have a major impact as a significant market player. By 2030 we aim to be the leader and driving force in the field of sustainable funerals and be seen as such. This enables us to contribute to increasing the sustainability of the sector and SDGs 8 (Decent work and economic growth), 12 (Responsible consumption and production) and 13 (Climate action).

Frank Eizinga, Chief Investment Officer, DELA Group

How important is sustainability for DELA as a cooperative to our members? And how interested are they in the sustainability of our service provision? DELA asked these questions to our cooperative panel in 2021 and found that while members value the fact that DELA operates in a sustainable way they are insufficiently aware of what we are already doing in this framework. On the overall subject of the environment members find it most important that DELA contributes to the preservation of biodiversity.

Companies often see sustainability as a balance between People, Planet and Profit but in our survey we made the distinction between ‘People & Society’, ‘Environment’ and ‘Economy’. The largest proportion (86%) of the people who completed the survey most valued DELA’s contribution to People & Society, followed by Environment (84%) and then Economy (80%). What themes did the respondents consider most important?

• People & Society
  • Good employership (96%).
  • Social added value (90%).
  • Diversity and inclusivity (88%).
• Environment
  • Biodiversity on our premises (92%).
  • Waste (92%).
  • Energy (89%).
• Economy
  • Investing with exclusion criteria (87%).
  • Investing in companies that increase the sustainability of the funeral sector (82%).

In 2020, DELA implemented a new model for calculating its CO₂ footprint which is in line with the Greenhouse Gas (GHG) protocol, the world’s most widely used benchmark for calculating emissions. The method applies three scopes:

• Scope 1: direct CO₂ emissions from sources within the organisation. This involves emissions produced by buildings, transport and production-related activities.
• Scope 2: indirect CO₂ emissions via the generation of purchased and consumed electricity or heating.
• Scope 3: indirect CO₂ emissions caused by the activities of another company. This involves emissions from sources not owned by the organisation and over which it has no direct impact.

According to the Greenhouse Gas Protocol – and this is most commonly used by most companies in practice – an organisation should at the very least take responsibility for CO₂ emissions caused by scope 1 and 2.

The applied model involves a top-down approach and therefore gives a more complete, integrated and realistic image. It was implemented at the level of the cooperative in 2021 and the footprint was also determined for DELA Belgium and DELA Germany.

The emissions for each scope are indicated in the table below.

In accordance with the protocol, investments are also part of DELA’s CO₂ footprint. This category is being monitored but has not been included in the table below as they are less within DELA’s sphere of influence. Nonetheless, the aspect is included in DELA’s corporate social investment policy.

The average CO2 emissions per funeral further declined from 496 kg in 2020 to 440 kg in 2021.

The degree of involvement and influence DELA has in the companies in which we invest is described as our engagement. DELA has its own voting policy. We cast our vote at as many shareholder meetings of the companies in our investment portfolio as possible. An active voting policy is part of the dialogue we conduct with the companies concerned. We also talk to other major investors in companies where we wish to see improvements in the areas of good corporate governance, social issues or the environment.

DELA addressed a total of 413 companies in its equity portfolio on engagement topics in 2021 (2019: 309) and this had an effect on 208 occasions (2019: 191). A dialogue was sought with 126 companies (2020: 123) within the corporate bond portfolio, which led to 77 positive changes (2020: 64). See table below for more details.

Ilse van de Voort, CSR Manager

Here we give a broad outline of the financial consequences of the Yarden takeover.

The acquisition price comprised a symbolic purchasing price of €2 for all shares.

DELA agreed that in case of the death of a Yarden in-kind package policyholder in the period between the takeover date and ten years later, all services from the package will be provided without extra cost, under the condition that our funeral company is used. DELA reserved €22.6 million for this purpose.

DELA also agreed that the part of the indexation which had been frozen by Yarden in 2019 when it implemented an en-bloc clause on the in-kind package policies would be compensated. A nominal amount of €62.4 million (actual value: €57.8 million at the end of 2021) was set aside.

Moreover, DELA will pay €1.5 million to the Yarden Association in three annual terms, allowing this volunteer organisation – that wasn’t included in the takeover – to continue independently. DELA members can also benefit from the services of the association.

DELA has acquired an insurance company with approximately one million customers and a funeral company with 47 funeral centres and 24 crematoriums.

To obtain approval from the Netherlands Authority for Consumers and Markets (ACM), DELA had to sell two funeral centres and seven crematoriums in which four funeral centres are accommodated.

The invested capital acquired from Yarden represented a value of €1.62 billion on the takeover date. This was included under DELA’s management and partly transferred into DELA’s investment mix.

Although it involves an investment in the short term, solidarity here does not mean that DELA members are looking to resolve the problems of Yarden members by making a donation. To understand the win/win situation, it is important to realise that insurers with a strong solvency ratio such as DELA have plenty of space to set up their investment mix in line with the type of long-term obligations involved in funeral insurance. This involves a broad spread of investments, with an expected higher risk in the short term as well as an expected higher yield in the long term. On the other hand, insurers with a weak solvency ratio, such as Yarden before the takeover, cannot bear these risks in the short term. This compelled Yarden to take a risk-avoidance approach to capital investment, which gave an insufficient yield to fulfil its insurance obligations. This in turn further reduced the solvency and the risk the company was allowed to take, placing Yarden in a negative spiral. The sum of DELA and Yarden paints a different picture. Together with DELA, the solvency is more than sufficient to invest for the long term, with expected higher yields. This is why Yarden’s invested capital was partially transferred to a more offensive investment strategy. In the long term, DELA expects a positive cycle, in which DELA’s members will benefit via profit distribution.

While the takeover does require a capital injection in the short term, this has only a limited impact on the capital and solvency of DELA, and will not lead to any extra premium increases.

Thanks to the takeover, DELA has gained around one million policyholders, as well as a large number of funeral centres and crematoriums. This results in an even large scale and gives DELA national coverage in the Netherlands of its own locations.

The Yarden takeover did have consequences on the premiums received by DELA in 2021.

After deduction of the reinsurance premium, DELA received €592.5 million in premium income (2020: €516.8 million), a rise compared to the previous year of 15 percent (2020: 8 percent). The income increased in all countries. In the Netherlands nearly half of the increase was caused by the Yarden takeover: €29.7 million of the €57 million increase. This involves the premium from the takeover date in early August 2021. DELA doubled its premium income in Germany.

DELA has a robust business model. The diversified investment of insurance premiums makes a structural contribution to our cooperative and its members in the long term. The nature of the insurance policies – in most cases paid out in the event of death – leads to long-term obligations. Investment results can fluctuate as this extended horizon requires a more offensive strategy.

Over 2021 we saw substantial recovery. A year earlier, with the start of the pandemic in early 2020, share prices fell on almost all financial markets worldwide. Recovery started in late 2020. The investment result in 2021 was €646.4 million compared to €74.4 million in the previous year. The yield was 9.3 percent (2020: 1.4 percent).

The volatility of the value of our investments is a direct consequence of our strategic investment choices. These are aimed at achieving the solid long-term returns on which the premium is based as well as to offset any inflation in funeral costs. By accepting a calculated risk in our investment strategy, we expect to achieve better overall results over the years. A consequence of this policy is that there are sometimes significant fluctuations in the value of our investment portfolio. This is why the investment result cannot be compared over the years without taking into account issues such as variations in financial markets.

The effects of the Yarden takeover on the investment portfolio were significant. The Yarden balance had different characteristics than DELA’s, as a result of which strict limitations applied to Yarden with regard to the portfolio composition. For the invested capital of Yarden, now merged with DELA’s invested capital, we largely implemented the criteria and composition of DELA’s investment portfolio in 2021.

The vision related to the allocation of the share portfolio was reformulated in 2021. We began by looking for a neutral composition based on international benchmarks. This matter was also discussed with external consultants. We then made a number of changes based on choices, including in the field of sustainable investments. Other choices made were related to the diversification between regions, the efficiency of markets and the cost of hedges.

DELA composed a good mix of active and passive investment portfolios both for the shares and the fixed-interest investments. The active fund managers will supply added value in the medium term and be paid by DELA for their reasonably consistent outperformance. The passive portfolios deliver results in accordance with the chosen benchmarks, as they should.

The operational result rose by 41 percent to €54.5 million (2020: €38.6 million).

The insurer’s result was €66.7 million, which is €15.1 million or 29 percent higher than in 2020. The result of the funeral company almost trebled to €3.9 million. This can be attributed to the increasing coverage of the fixed costs and cost savings, partially due to the Yarden takeover. The funeral company aims to increase its market share among non-members (in the free market) with the goal of achieving cost reductions via increases in scale.

The costs not assigned to the insurer and funeral companies increased by 8 percent to €14.0 million.

The coverage represents the market value of the investments in percentages of the market value of the guaranteed liabilities and depends on factors such as interest, mortality and cost developments. The average coverage in a year (partly) determines the profit distribution scheme for the following year for all profit distributing products in the Netherlands, Belgium and Germany.

The average coverage (13-month average) at the start of the year under review was 116 percent, and ended at 135 percent. The factors behind this increase are explained below.

The 20-year interest rate rose from 0.00 percent in early January 2021 to 0.55 percent by the end of December, leading to a 12%-point rise of the coverage. The good investment results caused a 13 %-point increase. The growing inflation caused a 9%-point drop, however. Other developments led to an increase of 3%-point, while the Yarden takeover had hardly any impact on the 2021 coverage.

The average coverage over 2021 was 129 percent (2020: 122 percent), a figure which forms the basis for the profit distribution in the following year.

DELA aims to ensure members a stable pay-out for funerals. The profit distribution is one of the unique characteristics of the cooperative.

Funeral costs rise over time due to inflation. Premiums are also increasing due both to inflation as well as back-service costs. When funeral costs increase during the term of the funeral insurance, the amount paid in over the underlying years is based on an insurance value that was too low. This difference must be made up for in the future, a correction called back-service. In principle, therefore, an increase in funeral costs leads to a higher percentage increase in the premium which DELA aims to limit using profit distribution. The amount being shared depends on inflation: the higher the inflation, the higher the back-service and the greater profit we aim to share in principle.

As DELA must always remain financially solid for its members, there are certain limitations to the extent to which profit distribution can be used in a year. One of these limitations is determined by the average coverage over the past 12 months. If the average coverage is 210 percent or higher, the profit will be distributed. A coverage of between 120 percent and 210 percent leads to a partial distribution of profit. Under 120 percent no profit is distributed. If the 20-year interest drops below 1 percent and the coverage is lower than 120 percent, a premium measure (additional premium increase) will be applied.

Low interest rates have an impact on DELA’s solvency and the premium measure was changed in this framework during 2021. DELA prefers not to apply this measure, but will do so if really necessary as it is in the interest of the cooperative and our members to maintain our solvency level and ensure our business model is safeguarded. What changes did we make? A coverage lower than 120 percent and an interest of 0 percent involves an extra premium increase of 0.75 percent. For 2021, DELA assumed that the extra premium increase would be no more than this 0.75 percent, even if the interest rate were to go below zero percent. A longer negative interest rate will however require more space for an extra premium increase in order to preserve the solvency. The premium measure was changed in this regard. The maximum extra premium increase is now 1.5 percent and will be triggered at an interest rate of -1 percent. Thankfully the negative interest trend seems to be disappearing, which means that the change will not be required in practice for the time being.

What is best for the members is determined annually based on scenarios: in the long term the goal is to ensure the cooperative remains financially solid and in the short term the aim is to limit an increase in premiums.

A profit distribution of €5.9 million (2020: €43 million) was proposed for 2021. The lower figure was due to the average coverage over 2020 of 122 percent being only just above the standard of 120 percent. Although a premium measure was not required, this did limit the distribution of profit.

Profit distribution is expected to be higher in 2022 as the average coverage in 2021 was higher compared to the 120 percent standard.

The premium increase for the funeral plan in the Netherlands on 1 January 2022 was 3.46 percent and based on three factors: 

• Increase related to the inflation of funeral costs. This component of the premium change is determined annually by the general meeting. The expected inflation for the following year determines the proposal for the premium increase as of 1 January. As the expected inflation over 2022 was 1.73 percent, the same percentage was proposed to the general meeting as component for the premium adjustment per 1 January 2022. The meeting accepted the proposal.

•  Increase related to not fully awarding the profit distribution for the coverage of the back-service. A 1.76 percent premium increase was required for the back-service as per 1-1-2022: just 0.03 percent was financed by profit distribution, which meant that 1.73 percent needed to be covered by policyholders.

• Increase related to the premium measure as a result of a structurally low interest rate and low coverage. A premium measure didn’t apply because the 12-month average coverage was above 120 percent in 2021.

DELA determines its solvency in accordance with the Solvency II capital regime, hence the name Solvency-II ratio. This involves a European formula in which the risks included in the balance of the insurer are taken into account in determining the solvency. The Solvency-II regulation demands sufficient solvency as a precondition for profit distribution. DELA aims for an optimal balance between its investment policy, profit distribution and solvency ratio.

The solvency ratio decreased from 270 percent to 266 percent at the end of the year.

The development of interest rates, inflation and other economic parameters resulted in a 41%-point fall in the solvency ratio. The updating of the starting points reduced the ratio by 18%-points mainly due to a cost increase in the Belgian portfolio. Investment results added 76%-points to the solvency ratio. Various other developments, such as the increase in mortality rates caused by COVID-19, new productionand a refinement of the indexation policy for the Belgian in-kind product resulted in a drop of 21%-points. The Yarden takeover had very little effect on the solvency ratio.

The solvency ratio takes into account the market value of our investments and obligations to policyholders: in insurance terms, the technical provisions. Our obligations should be discounted using the actual interest. Our investments had an average result of 5.3 percent over the past decade. For the coming years, we expect an average result of 3.8%. This should not be calculated into our obligations, however; the current interest will remain the basis. At the time Solvency-II was introduced in 2016 the 20-year interest was approximately 1.5 percent by the end of 2021 it was just 0.55 percent. DELA is therefore experiencing a dampening effect of the interest on the solvency ratio.

The results indicated in this segment underline the fact that DELA has a unique and very robust business model.

The lower profit distribution in 2021 does not change this fact – in fact it proves the resilience of our cooperative. The solidarity of our cooperative is partly based on members and policyholders sharing a limited risk. In exceptional market conditions, the premium can be further increased to a small extent. This helps keep the premium lower in normal market conditions as it is easier to maintain the solvency level of the collective.

The choice between a higher or lower premium increase is a consequence of a policy tool determined by the member representatives themselves in the general meeting. The choice of premium increase is one between long- and short-term member interests, with those interests always taking priority. Some other insurers share profits – including the calculated risk premiums – with shareholders, while shortfalls are compensated for by premium increases. At DELA Cooperative, the member collective is the shareholder. We share both the benefits and the burdens… And that is the strength of our cooperative.