Delta Lloyd cancels sale of German insurer to Nomura
AMSTERDAM (Reuters) - Dutch insurer Delta Lloyd (DLL.AS) has canceled the sale of its German operations to Nomura Holdings (8604.T) because of worsened economic circumstances and difficulty in gaining approval from German regulator BaFin.
Delta Lloyd announced the sale in September last year and expected to make a book profit of 65 million euros ($83.75 million) on the deal, including tax benefits and a foreseen deterioration of the property portfolio.
"The discussions with BaFin, which looks at the insurance obligations, were postponed continuously. That was more difficult than we expected. The economic conditions also remained bad," a Delta Lloyd spokesman said on Friday.
The Dutch company had the option to cancel the deal if a certain minimum price was not reached, and it decided to use that option, the spokesman said. He declined to give a price.
Delta Lloyd made the decision in 2010 to stop selling insurance products in Germany and let the business run-off until maturity.
When it announced the sale in 2011, it did no state a sale price. It said the price would be dependent on financial markets developments, principally interest rate and spread changes and the property portfolio. ($1 = 0.7761 euros)
(Reporting by Gilbert Kreijger; Editing by David Goodman) (This story was refiled to fix typo, "sales" to "sale", in headline)
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