- Einhorn cuts stake in Delta Lloyd almost 2 percentage points
- Insurer's shares down more than 51 percent for the year
Delta Lloyd NV dropped to the lowest since its initial public offering in 2009 after money manager David Einhorn, one of the insurer’s largest shareholders, reduced his stake.
The stock dropped 2.6 percent to 8.88 euros ($10) at 12:01 p.m. in Amsterdam, taking losses for the year to more than 51 percent. Einhorn, who runs investment firm Greenlight Capital, cut his interest to 2.98 percent from 4.84 percent.
”Einhorn has invested in the company since the IPO,” said Matthias de Wit, an analyst at KBC Securities in Brussels. “Him cutting the stake can be viewed as a negative signal.”
Delta Lloyd reported a surprise first-half loss totaling 533 million euros last month after interest-rate hedges backfired and bonds declined. The company’s finances weakened just as Chief Executive Officer Hans van der Noordaa is seeking to bolster capital before the introduction of stricter international rules next year.
Chief Financial Officer Emiel Roozen and supervisory board Chairman Jean Frijns stepped down last month because of the firms mis-use of central bank information for trading purposes in 2012.