Delta Lloyd CFO Resigns as Fine for Information Abuse Upheld

Updated on

Delta Lloyd NV Chief Financial Officer Emiel Roozen stepped down after a court upheld a central-bank decision fining the insurer for making trades based on confidential information.

Supervisory Board Chairman Jean Frijns will also resign on Oct. 1, the Amsterdam-based company said, adding that it will nominate a new CFO later this year.

Delta Lloyd was fined 22.8 million euros ($25 million) in December after it reduced interest-rate hedges a week before the central bank introduced a fixed rate for calculating some insurance liabilities in July 2012. The bank had sought Roozen’s dismissal for his part in gaining advantage from the information, obtained at a meeting with bank officials. The court lowered the penalty by 120,000 euros.

Delta Lloyd, which gets about two-thirds of its revenue from life insurance, said it won’t appeal the ruling as it “seeks to resolve the situation as soon as possible.” It also announced that market regulator AFM imposed a penalty of 750,000 euros for the trades.

The company, which said last year that the information it obtained was publicly available, announced the resignations even after the court said that the central bank should review its initial order demanding that Roozen leave.

Frijns said he was disappointed with the court’s decision.

“The best thing to do is to take the consequences of what happened,” he told journalists and analysts on a conference call.

The shares dropped 0.3 percent to 16.13 euros at 3:06 p.m. in Amsterdam, valuing the company at 3.6 billion euros.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE