2 Executive Board Report

Despite the restrictive measures in 2020 we saw a further improvement in customer satisfaction across almost all business units in the Netherlands and Belgium.

The overall Net Promotor Score (NPS) in the Netherlands increased to 61 (2019: 60) and in Belgium to 70 (2019: 66). Weighed by respondents, DELA scored an average of 66 (2019: 62), a progression of which we can be proud. While there was a small fall in the funeral company score in the Netherlands to 73 (2019: 76), this remans a very good result.

The funeral centres in Belgium scored the highest with an exceptional mark of 80. This high and stable score (even during the second COVID peak) is the result of a humane, respectful and experienced approach. Aftercare is stable at a high level of 79, despite the fact that meetings with bereaved relatives to arrange funerals had to take place by phone or online as home visits were not permitted.

The funeral sector is expected to grow in our core market of the Netherlands due to demographic developments. In view of DELA’s current market share, it is difficult to continue our growth. DELA’s market share will increase due to the proposed takeover of Yarden. Once the regulators agree to the takeover, the integration of the organisations will be a leading theme for DELA Netherlands in the coming years.

Belgium is DELA’s second core market. In the long term, the market for funeral insurance will double in size. Maintaining growth over the years is the main challenge here, as is realising synergies between insurance and care provision. Belgium is actively selling endowment insurance policies. The funeral business does not yet have national coverage.

Our insurance company takes care of the financial security of funerals, while our funeral services assist the bereaved with funerals, crematoriums, repatriation and bereavement services.

In 2020, DELA made a plan to increase the growth of its funeral company. This includes additional acquisitions, providing extra services, reducing costs and improving the local cooperation in zones where DELA is active.

The DELA office opened in Düsseldorf in 2018 and now offers life insurance and funeral insurance. The German market is substantial and still growing. One of DELA’s starting points is that all (non-Dutch) growth is to the benefit of the total cooperative.

Growth contributes to continuity

The size of our total portfolio, measured by the number of insured, is a major priority for DELA. Despite the shrinking market for individual life insurances, we again achieved significant growth in 2019 across all three product groups: funeral insurance, life insurance and savings plans, and in all countries in which we operate. The increase of new policyholders occurred in all countries and contributes to the continuity of the cooperative.

Consolidated, the net growth was over 109,000 (2019: approx. 75,400). The strategy to create international coverage in order to control growth at the DELA Group level was again effective in 2020.

There was strong growth for DELA’s funeral insurance plan (Uitvaartplan) in the Netherlands. A net increase of 42,600 (2019: 23,500) represented almost a doubling on the year before. This success does not just apply to the inflow; DELA also achieved good results in retaining customers.

Since 1 January 2020 the DELA funeral care plan (Uitvaartzorgplan) in Belgium has been offering extra services to bereaved relatives such as psychological support, repatriation and early return for family members. The influx of policyholders in Belgium in 2020, at 28,600, was slightly less than expected and lower than in 2019 (approx. 29,600). The influx of brokers and agents mainly lagged behind in the year under review. As a result of the pandemic, brokers were forced to close their doors for a significant period, and home visits by (sub)agents were also impossible.

DELA introduced a funeral insurance policy in Germany in 2019. It covers funeral costs and includes a profit-distribution scheme that gives 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. We welcomed over 9,700 insured in 2020 compared to around 3,100 in the introduction year.

Net growth in life insurance policies was around 2,500 in the Netherlands (2019: approx. 8,700). In the year under review this score was affected by the challenging housing market for first-time buyers. Another reason is the ending of the compulsory life insurance for all NHG mortgages (mortgage with National Mortgage Guarantee). This was implemented on 1 January 2020 for existing NHG mortgages 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 2020 at 6.1 percent (2019: 7.6 percent).

In Germany, where DELA launched its life insurance in 2018, the conditions are very different and in 2020 we welcomed some 28,000 policyholders (22,300 in 2019). DELA is not yet widely known in Germany, but the Dutch have a good reputation for being reliable and friendly. The idea of a cooperative is also attractive to Germans. In 2020 DELA achieved a market share of 7.5 percent with its life insurance policies (calculated based on insured capital).

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 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). 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 4,700 policyholders (2019: approx. 4,500).

DELA has an active marketing approach which seeks an ideal balance between commercial goals (appropriate to our objective of becoming as large as possible so we can utilise our scale benefits) and restraint (suiting our brand and products).

At the start of the COVID-19 pandemic, DELA cancelled most of our campaigns. Many third-party campaigns included the theme of solidarity, which has been an essential theme within ours for many years.

A new policy application for web and mobile phone was introduced in Belgium in early 2020 and it now only takes ten minutes to apply for insurance. If a number of questions indicate the applicant is healthy, all documents are generated automatically and sent to the customer without obligation. If the applicant provides a digital signature via text message, itsme or eID, the insurance is immediately implemented and the customer receives their policy straight away.

The new digital platform DELAconnect was introduced to brokers, sales organisations and sub-agents in Belgium back in 2019. Over 5,800 users at some 2,500 brokerages, around 900 people at six sales organisations and 91 consultants from DELA Enterprises actively use the platform, which allows intermediators to made premium calculations, tenders and policy proposals for the DELA funeral insurance scheme. The next step will be to allow brokers to use DELAconnect to manage their own insurance portfolio.

In September 2020 DELA Germany introduced a new broker’s portal that allows brokers and insurance agents to find key information such as request status, files, cancellation risks, notifications, committee data and various download options. Managers in the DELA portal such as head brokers or agents can transfer access rights to their employees and share selected information with them.

DELA owes its success to a combination of insurance and care. Our employees offer concrete help, and support our members and their relatives with advice and assistance.

The share of free market funerals in the Dutch market was 5.1 percent in 2020 (2019: 5.3).

We had hoped to increase this share but were unsuccessful as DELA stopped its brand campaign and found it inappropriate to issue commercial publications promoting the brand at during a pandemic. In 2020, DELA established a new policy for serving the market for private funerals with specialised funeral providers (free market specialists). These specialists started in November and are focusing on specific regions in the Netherlands.

The mortality rate for the Netherlands in 2020 was 10 percent higher than expected with nearly 169,000 deaths (2019: 152,000). DELA arranged some 38,100 funerals (2019: approx. 33,600). DELA’s market share was 23 percent (2019: 22).

The funeral company in Belgium is mainly focused on the free market so growth should happen autonomously and via acquisitions. In addition, DELA Belgium aims to strengthen cross-pollination with policyholders, offering to also arrange funerals when insurance policies pay out.

In the Netherlands there were some 26,300 cremations, an increase of nine percent compared to 2019. In Belgium, the number of cremations was around 9,300, an increase of 11 percent. In total, there were approximately 35,600 cremations.

In 2020 DELA took over two funeral businesses in Belgium, Uitvaartzorg Ketelaars in Kapellen and Uitvaartzorg Jaeken in Peer.

Our funeral centres and crematoriums have in general a homely, warm and colourful interior. 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 and contribute to a dignified farewell.

DELA operates 54 funeral centres and 22 crematoriums in the Netherlands. The latter involves 21 self-owned crematoriums, and one that is a joint-venture (50% interest): the new La Grande Suisse in Maastricht.

In 2020 DELA teamed up with Monuta to open La Grande Suisse in Maastricht. The crematorium is in an intimate and attractive location outside the city on an estate dating back to the first half of the 18th century. Funeral services can be held in La Grande Salle, which has a fixed theatre setup for 140 people. The smaller auditorium, La Petite Salle, has a capacity of 40 seats. The spaces are equipped with the very latest support equipment for video, sound, recording and livestreams. Another room called Le Salon has a different setup and has a homely character which is ideal for intimate goodbyes. Le Salon can also be combined with the catering facilities provided by La Grande Suisse. La Grande Suisse is owned by Monuta and DELA cooperative in equal partnership.

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.

DELA Belgium has 59 funeral centres in 117 locations, two crematoriums (plus a 30% participation in a third) and a repatriation centre, Mortuary Brussels Airport in Zaventem. The crematoriums are located in Bruges, Mons and Charleroi (joint participation).

Various renovations took place in 2020, including the addition of an extra reception room and garage for Uitvaartzorg Remans. We also completed renovations at Uitvaartzorg Timmermans and Centre Funéraire Charles Renard, and built an extra auditorium for the Crematorium of Mons and the Centre Funéraire Bottin, with accessible gardens.

DELA has its own repatriation centre near Zaventem Airport, called Mortuary Brussels Airport, where our employees help descendants repatriate to and from other countries. Thanks to our extensive network, DELA can ensure smooth repatriation 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 2020, the centre realised 713 repatriations (2019: 756).

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 to 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 my 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. In the Netherlands, the service is a standard part of all funerals that DELA arranges. Aftercare is also a standard part of the DELA funeral care insurance in Belgium and a standard part of all funerals arranged by DELA.

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 3.14 million members.

Work on the legal structure for our policyholders in Belgium is still underway with the intention being for them to join the cooperative as well. 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. 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 in the 'Governance & risk management' chapter.

There were two general meetings in 2020, held in January and June.

The following items were discussed on 18 January:

• The proposed takeover of Yarden, including the requests submitted to external supervisors DNB and ACM and the project plan for integration;
• The proposed expansion of the general meeting with four divisions, under condition of the Yarden takeover. As the takeover did not yet go ahead this expansion did not yet come into effect;
• The business plan and budget for 2020;
• The adjustment of the premium measure;
• The capital policy;
• The remuneration of the Supervisory Board. The separation of the Audit & Risk Committee into an Audit Committee and Risk Committee entails a redistribution of funds. There will be no changes to the total remuneration.

The general meeting on 6 June was followed via livestream by members and attendees, with members having issued a proxy in advance. Due to the maximum group size of 40 persons, attendance in DOMUSDELA was limited and the social distancing rule applied. The following items were discussed during the meeting:

• Update on the COVID pandemic and its impact on DELA;
• Update on the process and events revolving around the proposed takeover of Yarden;
• The election of a member of the confidential committee. In accordance with Article 10 of the Rules of Procedure, four members were appointed. The members are appointed for a maximum period of four years and one resigns in accordance with the pre-set rotation schedule each year so that a new member joins each year. There were two candidates. After a vote, Mr G.C.A.M. van Bree was re-elected as a member;
• The 2019 annual report, including comparing the financial aspects to the budget and 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 remuneration report, which determined that the remuneration was accurate;
• The development of the average funeral costs;
• The premium adjustment of the DELA UitvaartPlan, including the determination thereof;
• The profit distribution of the DELA CoöperatiespaarPlan, including the determination thereof;
• The departure of Mr Jansen as Supervisory Board member.

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. This panel was converted into an online platform in 2015, allowing a larger group of members to contribute ideas. At the end of 2020, more than 2,300 members (2019: 2,100) were connected. In 2020, we asked the cooperative panel how they would like to commemorate people who die during the COVID-19 pandemic. We also asked for improvements on the letter about the new funeral insurance policy and how they felt about the digital services as part of the funeral insurance.

All results can be found via  https://www.dela.nl/over-dela/over-cooperatie-dela/lid-van-cooperatie-dela/cooperatiepanel/terugkoppeling-van-onderzoeksresultaten.

After deduction of the reinsurance premium, DELA received € 516.8 million in premium income (2019: € 480.2 million), an 8 percent growth on the year (2019: 7 percent). Income in the Netherlands and Belgium increased by 6 percent, and trebled 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. As this extended horizon requires a relatively offensive investment strategy, investment results can fluctuate.

There were major fluctuations over 2020 as the outbreak of COVID-19 caused stock prices on the financial markets to fall. The recovery started at the end of 2020. On balance, DELA made up its losses and ended with a result of 1.4 percent – a profit of € 74.7 million (2019: 664.2 million). The fluctuations work to our benefit in some years, such as in 2019 when the investment income was exceptionally high with a return of 12.3 percent. Despite the pandemic in 2020 and the resulting recession in large parts of the world, the high closing prices from the investments in 2019 were eventually maintained in 2020. In the circumstances this is very good news.

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.

In 2020, DELA continued to shift its asset mix of investments toward so-called real assets, which include real estate, infrastructure and agriculture & forestry. Due to the low correlation with financial assets such as shares and bonds, these are a solid addition to any properly diversified investment portfolio.

DELA also decided to scale down its tail risk hedge in 2020. The hedge protects the invested capital and is activated when the stock portfolio drops by more than 20 percent in value. Conversely, the yield is reduced when the hedge is unnecessary due to the costs of maintaining the hedge. In fact, it serves as a type of insurance and we have decided that DELA, as an insurance company, can bear this risk itself in the long term.

The operational result rose by 26 percent to € 38.6 million (2019: 30.5 million).

The insurer’s result was € 50.0 million, which is € 2.3 million, or 4 percent less than in 2019.

The result of the funeral business increased by approximately € 9.3 million to some € 1.5 million in the plus due to the rise in the fixed cost coverage caused by the higher number of funerals. The goal for the funeral company to achieve positive results was therefore realised unexpectedly quickly, despite a reduction of approx. € 5.0 million in catering turnover due to the lockdown and the additional expense of buying PPE. 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.

Digitisation affects the entire organisation within DELA. The line organisation and IT work closely together to build a strong foundation for the personal service provision around which everything revolves. This considerable shift in digitisation requires DELA to invest in systems and processes as well as in our people. To increase our room for manoeuvre it is important to reduce our basic costs, set priorities and make clear choices. This will also make space for extra investments in digitisation in the coming years, including robotisation and artificial intelligence.

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 € 4,383 (2019: 4,298) a rise of € 85 or 2.0 percent(2019: € 110 or 2.6 percent).

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.

In January 2020, the general meeting changed the coverage as part of the profit distribution retroactively from 1 January 2019. We now apply a single coverage for all profitable products in the Netherlands, Belgium and Germany. In addition, investment costs, insofar as they are higher than those of a passive investment as defined by us, are no longer included in the coverage.

The coverage was 151 percent at the start of the year under review and 116 percent by the end. The overview below explains this reduction, with the main factor being the reduced interest. In 2020, the 20-year interest was reduced from 0.61 percent in January to 0.00 in December, which had a dampening effect on the coverage of 31 percentage points. The investment results also led to a reduction over the year but the stock market recovery neutralised the investment impact. An update of the insurance assumptions resulted in a 9 percentage point drop, especially as a result of the adjustment of the mortality table of the Koninklijk Actuarieel Genootschap. Other developments gave a 5 percentage point increase.

The average coverage over 2020 was 122 percent (2019: 156 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. 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.

We limit premium increases for our members as much as possible by means of 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. Because DELA must always remain financially solid for its members, there are certain limitations to the extent to which profit distribution can be used. One of these limitations is 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.

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. Member interests always come first – the issue is whether to address these in the short or long term.

A profit distribution of € 43 million was proposed in 2020, virtually the same level as in 2019 (€ 42 million).

The profit distribution in 2021 will be lower. The average coverage over 2020 of 122% is just above the standard of 120% so there is no need for a premium measure. The profit distribution over 2021 will be determined in the general meeting (see also Our future).

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 dropped from 296 percent to 270 percent at the end of the year.

The adjustment of the premium measure (as indicated in this chapter under Profit distribution) created an increase in the solvency ratio of 68 percentage points. Due to the development of the economic parameters, and especially the interest reduction, there was a drop of 53 percentage points, while an improvement in the economic model reduced the ratio by 23 percentage points. The phasing out of the tail risk hedge resulted in an 18 percentage point drop. Other developments had, on balance, a neutral 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 4.5% over the past decade. For the coming years, we expect an average result of 3.9%. 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 interest was approximately 1.5%; by the end of 2020 it was at a historic low of 0.00 percent. DELA is therefore experiencing a major 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 choice between a higher or lower premium increase is always made in the interest of our members and customers, and is a consequence of realising the policy determined by member representatives in the general meeting. The choice of premium increase is one between long- and short-term member interests. DELA members share the burdens so they can receive extra benefits that more than make up for these burdens in the long term. And therein lies the strength of our cooperative.

People working in the Dutch funeral business are now considered key workers. This may seem obvious but wasn’t the case at the start of the pandemic. The clarity only came in the spring of 2020, after meetings of the steering group with the National Operational Coordination Centre (LOCC). Thankfully this soon led to all people working in funeral services, funeral care and on the care desk to be considered as key workers. This also allowed them to (continue to) make use of day care services for their children.

This latter point does not unfortunately apply in Belgium. On the plus side, the Government Gazette of October 2020 did include funeral companies and insurers on the key worker list, which meant that the facilities could stay open.

To gauge our people’s opinions and see where we stand in relation to similarly sized companies, DELA participates in the Great Place to Work (GPtW) survey every year. GPtW focuses on trust, pride and camaraderie as key elements of being a good employer. The score for our operations in both the Netherlands and Belgium was mostly at the same level in 2020 as the previous year. We again had a trust index of 88 points in the Netherlands and in Belgium the score was 87 points. There has been a significant improvement over recent years, and in the year under review, the high levels were preserved. No GPtW survey has been taken in Germany to date.

DELA Netherlands was again awarded first prize and can call itself the best employer in the Netherlands in 2020. The fact that this result has been attained three years in a row is exceptional and reflects how much staff value DELA as an employer. It is a performance that has been achieved together. We firmly believe that happy people at work translates into better services. This conviction is by no means new but it has again been reconfirmed.  

DELA Belgium also did very well and was awarded fourth place (2019: sixth) among Best Workplaces in 2020. We are very proud of this recognition, which is a huge sign of appreciation and confirms that our colleagues feel heard. We work hard to achieve this together every day.

The ranking of Best Workplaces consists of two components: the annual employee survey (two thirds) and feedback from the culture audit (one third).

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. This attention to health is bearing fruit in terms of reducing absence due to illness and has allowed us to maintain our good health results in an extremely challenging year. Various programmes, mainly focused on preventing the negative effects of the COVID situation, are being implemented and developed to prevent absence due to illness and promote health.

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 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 has applied the ‘take control’ model to absence through illness since 2019 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.

In 2020 we held a Health & Safety survey among managers of DELA Netherlands about the take control’ model. Of the approximately 75% who responded, almost all indicated that the role of case manager belongs to the managerial position. While a significant majority said they had sufficient tools and skills to deal with absenteeism, the figures were lower when it came to prevention. While the conclusions of the survey are that the model is considered positive, there is a need for more support from Health & Safety or the company doctor in cases of long-term or complex absence. DELA aims to manage absenteeism in a more data-driven way in the future, provide more opportunities to learn, increase the focus on prevention and improve the software tool used.

Over 2020, we see a clear fall in absenteeism within the funeral business and the client contact centre, leading to improvements in the figures in both the Netherlands and Belgium. In the Netherlands, the result is 5.2 percent (2019: 6.1), while in Belgium it was 4.3 percent (2019: 4.5). There was a rise in absenteeism in Germany among a relatively small team of 23 employees to 3.8 percent (2019: 3.3) which is still a better result than in the other two countries. Although DELA does not publish total figures for absenteeism due to the difference in how this is defined in each country, we can conclude that there was an improvement, despite the COVID pandemic.

COVID: impact on funeral staff
Remembrance in times of COVID, with only a few people able to attend funerals and no physical comfort or contact allowed – the situation was difficult. DELA Belgium explored the impact of this on funeral employees together with the Mental Health and Wellbeing group of Vrije Universiteit Brussel. The research showed that employees felt a heavy load during the crisis and identified a clear risk of burnout, despite the fact that employees still got a great deal of fulfilment from their work.

Uncertain times bring tension and employees have to be constantly attentive and alert. Some colleagues have been affected by what they’ve seen and experienced. Recognising the importance of talking about this, managers facilitated opportunities within their teams. Various other tools were used to address the issue, including a 24/7 helpline, team sessions to share experiences (online and occasionally on site), individual coaching, working on mental and physical resilience in small groups, dealing with aggression, happiness workshops and mindfulness, to name just a few. Focused on the role of both managers and employees, all the tools led to positive experiences. We also shared frontline stories from colleagues and tips for working at home via DELA Vitaal. The latter mainly involved exercise. In the same way that we believe satisfied employees are the foundation for customer satisfaction, we are convinced that the growth of our staff is the main driver behind the growth of our organisation. These challenging times also had a mildly positive effect in offering new experiences, a fresh dimension in terms of cooperation and an opportunity to grow in a new field.

Now that many of the staff work from home, a good workplace and physical comfort is of the essence. This is often easier in the office where the required tools are readily available. DELA Netherlands provided an e-learning programme to make employees aware mad share information. Despite the unparalleled amount of work people faced, nearly 100 colleagues found time to access the e-learning programme.

DELA Netherlands is working to simplify its job categorisation with two goals in mind. Job profiles have not always been properly aligned in the elaborate categorisation system so the project is creating a more controllable and manageable way that supports the influx and flow-through of staff. DELA also wants the categorisation system to conform with the market. The new system works with job families and the more department-specific tasks and responsibilities are no longer described. If the job level is lower, employees will maintain the perspective of their current position under the new system with no negative consequences on the working conditions for the current job titles.

Thirteen accidents were reported to Health & Safety in the Netherlands in 2020 (2019: 16), divided into two categories: occupational and third-party. Occupational accidents occur at the work place, while third-party cases are caused by others (often in traffic). Throughout 2020, there were 11 occupational accidents (2019: 14) and 2 third-party cases (2019: 2). The most prevalent in 2020 was the stabbing incident (4x). In the previous year it was slipping, for which measures were taken such as instructing staff to immediately mop up any spills. There were no more incidents in this category in 2020.

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 from which no absenteeism results. The accidents and incidents are monitored closely. In 2020 there were 6 occupational accidents (2019: 9) and 9 incidents (2019: 11). Six incidents were related to a fall. In addition, there were three car accidents and three stabbing incidents.

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 64% 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, as there were hardly any changes in 2020. 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 their 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 you fit in with the company is more important than whether you are able to do something well – because we can teach you how to do something but not who to be. DELA Netherlands had almost as many applicants in 2020 as in 2019, namely some 2,600. DELA Belgium received interest from around 1,850 candidates compared to 1,180 in 2019.

At the start of 2020 the Netherlands implemented the Balanced Labour Market Act (Wab) which contains a number of measures aimed at reducing the difference between permanent and flexible employment. The bill makes it more attractive for employers to offer employees permanent contracts, while flexible employment will continue to be available where necessary. The concept behind this act suits DELA. We like to connect people and give employees our trust from the moment they start working with us – a permanent contract is in line with this notion. At the same time, our work also demands a degree of flexibility – for example in IT, where we currently have several major projects ongoing. The funeral company also requires flexible employees during peak periods.

DELA Netherlands and DELA Belgium each have their own works council and their reports on 2020 can be found below.

In 2020, the works council provided advice on the following subjects:

• To implement, without changes, the proposal that regional managers no longer answer to the Funeral Care director, expanding the Management Team with one member and returning to four clusters.
• To implement, without changes, the proposal for DELA to stop giving direct advice as a cooperative.
• To implement, without changes, the proposal to establish a test team with longer opening hours that fully focuses on digital customer contact via social media (webcare) and on complaints about DELA via online sources.
• To implement, without changes, the proposal to add all DELA business analysts and the ‘Business Analysis’ line to the ‘Richten’ department of IT.
• To implement, without changes, the proposal to terminate the cooperation with Myosotis and take care of funerals in this region (Amsterdam, Almere, Het Gooi) ourselves as of 1 June 2021.
• To implement, without changes, the proposal to organise in a product-oriented way from the functionally established Tribe IT team, after assuring that the preferred tole of the employee will be taken into account as much as possible and giving them time to get used to the situation.

The works council gave approval for:

• The proposal to allow Customer Care Centre employees to answer emails and chats to this department on Saturdays and Sundays on a voluntary basis. The works council recommended integrating an extra planning check to prevent these employees from performing activities for DELA more than 10 days in a row. It also pointed out the risk of social pressure within teams to work at weekends. Management indicated they would do whatever necessary to prevent this social pressure.
• The proposal to appoint Sanne Vervoort as a prevention employee at DELA;
• The proposal to align DELA’s wage scales to the policy scales seen in the general market.
• The proposal to optimise the DELA job categorisation system by implementing job families.

The works council also submitted an initiative proposal regarding the lease scheme. The initiative to align the maximum CO2 emissions for each lease category to 110 grams per kilometre was adopted by the Board. The works council submitted the initiative in the belief that the job level should not decide how much staff can limit their environmental impact (the lease categories are based on job levels). The alignment of CO2 emissions to 110 grams per kilometre in every lease category also allows DELA to obtain the GreenLeave standard and gives DELA staff in the lowest lease category more options when selecting an (electric) car.

In 2020, the works council gave approval for:

• Exemption of publication of a sub-consolidation over 2019 at the level of the Belgian DELA Holding group and Belgian companies (as reporting takes place at the DELA Group level).
• The proposal for communication about group insurance related to the premium composition.
• The composition of the polling station team.
• Time-saving insurance in the framework of the collective labour agreement, including option to transfer maximum of 10 days paid leave in 2020 and 10 days in 2021 to time saving.

Other topics discussed by the works council include the latest COVID developments, key figures, quarterly results, and personnel developments (including the number of staff who joined/left, suspensions, absenteeism and outsourcing).

A new CSR policy was developed for DELA Netherlands in 2020. Below is an overview of its four goals and the achieved results:

Specialist in sustainable funerals
DELA Cooperative aims to be the knowledge specialist and market leader in the field of sustainable funerals by 2030. In the year under review, we developed DELA Duurzame Uitvaart; a package of three accessible choices with a relatively high impact, including:

1. A casket with GreenLeave certification;
2. Removing the need for a hearse by having the funeral take place at a single location or using one that meets specific sustainability requirements;
3. Digital death notices or announcements printed on sustainable paper.

Reduce CO2 emissions to zero by 2030
DELA had previously commissioned the development of an electric cremation furnace, the first of which was is located in Geleen (NL). Another was placed and taken into use in Maastricht in 2020 and the new crematorium in Groningen will also have one, as will the renovated crematorium in Bilthoven. Although the gas normally consumed has been made sustainable and is no longer included in our CO2 footprint, we aim to switch to energy that is sustainable from the source wherever possible.

We are also trying to reduce our CO2 footprint in our investment portfolio. We realised a 50% reduction in emissions by rearranging the portfolio for North America and Asia-Pacific, for example.

We use sustainably produced materials. Waste is given an eco-friendly destination wherever possible
Materials are finite so we strive to be smart about our use of raw materials and minimise overall material use. Three aspects are monitored for each product and/or service:

1. the amount of natural resources required to make it;
2. the social conditions under which it is made, processed and transported;
3. the CO2 emissions produced in making it.

Little by little, we are ensuring that our materials cause less damage, and we may even have a positive impact. Various successes in this regard include replacing our basic casket made from plywood with one made from sustainable wood in 2019. De Spar massief – as the casket is known – was used over 18,200 times in 2020. DELA also offers various other sustainable alternatives such as a charger board or a cast made of willow or Dutch wood. In 2020, we also found a social workshop that was willing to make casket crosses from waste wood. Another goal is to develop new uniforms that meet strict sustainability requirements – we are currently taking this into account while selecting a supplier. We are also meeting with partners who can increase the sustainability of our catering range.

DELA strives for a society in which everyone matters and can participate
We find it important that people from various backgrounds, levelsand ages feel welcome in our organisation and have the opportunity to contribute their own talents. We ask that our suppliers and partners apply the same approach. In addition, DELA as an organisation isa  part of society and organises social activities via the DELA Fund and the different regions.

DELA’s purchasing department in the Netherlands has started a range of projects to contribute to the cooperative’s sustainability objectives. Issues related to people, planet and profit have been explicitly stated in the new procurement policy. DELA imposes sustainability requirements on our suppliers and the products and services they provide. We are also working with suppliers in a range of areas to realise new sustainable products.

Our Dutch crematoria, funeral homes and head office are powered by Dutch solar and wind energy, which we currently consider the best option for green electricity. We have also installed solar panels on several of our buildings. Gas consumption is compensated for at the highest possible level: the WNF Gold Standard. All these measures represent a big step towards a climate-neutral DELA.

In 2020, DELA implemented a new model for calculating its CO2 footprint which is in line with the Greenhouse Gas (GHG) protocol. The new calculation method takes a top-down approach and therefore gives a more comprehensive, integrated and realistic insight.

The model was used to calculated DELA Netherlands results for 2020 and 2019. The emissions by category are shown in the table below, which shows  that funeral transport is our largest contributor with 90 percent involving transporting visitors to and from funerals. The emissions of the funeral transport (approximately 10.1 kilotonnes in CO2 emissions) was significantly reduced compared to 2019 (23.3 kilotonnes). This reduction is expected to be temporary as it is directly related to restrictions resulting from the COVID pandemic.

The second largest source of CO2 emissions involves our products and services, such as the funeral care products, caskets, headstones and catering. The achieved reduction to 7.5 kilotonnes in CO2 emissions in 2020 (2019: 10.2 kilotonnes) is also related to the COVID pandemic.

The cremation furnace, crematoriums and funeral centres do not generate CO2 emissions as DELA consumes green electricity and gas.

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. A first indication of the CO2 footprint of our investments is 626 kilotonnes in 2020. In 2021 we will refine the model to give a more accurate determination.

Although DELA arranged more funerals in the Netherlands in 2020 (38,144 in 2020 vs. 33,645 in 2019) the total footprint of our Dutch activities was less. In addition to the CO2 saving measures we took such as the further electrification of our fleet, the reduction was mainly caused by the COVID-related restrictions. The CO2 emissions per funeral declined from 0.5 tonnes (2019: 1.05). Emissions related to investments were not included when determining the CO2 emissions per funeral.

An important component of our business model is the diversified long-term investment of insurance premiums. This goal was redefined in 2020 to: “DELA increases the sustainability of its investment portfolio in line with the European climate agreement. DELA reduces negative impacts and enhances the positive impact of its investment portfolio on the world.” With this in mind we are placing a considerable focus on corporate social responsibility (CSR). Our CSR policy contains all the guidelines and frameworks with which DELA aims to comply as a responsible investor and is available on our website.  The underlying ambition is robust and will be rolled out over the entire portfolio in order to realise our goals. DELA has set itself the goal of being among VBDO’s top 10 sustainable insurers benchmark. The benchmark was not performed in 2020; in 2019 DELA came sixth.

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 309 companies in its equity portfolio on engagement topics in 2020 (2019: 408) and this had an effect on 191 occasions (2019: 212). A dialogue was sought with 123 companies within the corporate bond portfolio, which led to 64 positive changes.

DELA was established based on a deep-rooted social engagement which is still part of the company today. This is why the DELA charity funds in the Netherlands and Belgium support social initiatives: 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 almost 85 years.

With the DELA Fund and the new Connecting Generations theme introduced in the Netherlands in 2019, 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 will organise and support any 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.

Boven de Wolken (Above the Clouds) is a volunteer organisation in which professional photographers capture subtle images of deceased children free of charge to create lasting memories for their parents. These photos can play an important role in the processing of grief. The DELA Belgium charity fund felt that everyone in Belgium should have the right to this unique initiative and expanded it to Wallonia under the name ‘Au-delà des nuages’. The organisation made portraits of 639 children in Flanders and 184 in Wallonia in 2020.

DELA carries out structural reputation research in order to understand how we are perceived by society. The results show how the cooperative has built up a good reputation in recent decades and that DELA has widespread name recognition. 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 periodically measure changes in our reputation. In the Netherlands we use 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 remained stable in 2020, with the general public score rising to 74 (2019: 72). The reputation among members increased to 82 (2019: 80). The fact that we managed to further enhance our reputation from an already very high score is something of which we can be very proud. Among non-members, our reputation rose to an annual average score of 69 (2019: 67). Part of the ambitious goal until 2020 was to achieve a monthly score of 70 among non-members: as this was realised several times in 2020, our goal was attained.

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 foremost funeral specialist?”. The score rose from 67 in 2019 to 70.

We believe we can continue the current speed of growth in members and policyholders in the Netherlands, Belgium and Germany. Expanding our market shares in the funeral companies in the Netherlands and Belgium based on our own strength is still somewhat of a puzzle. We will profile ourselves even more as the national player with a local face, offering depth and quality to ensure that every funeral is special.

The growth of our operational activities in the Netherlands could be boosted further by the Yarden takeover. Although we initially announced that this would take place in 2020, we now expect it to take shape in 2021. The significant legal risks that compelled us to pause developments in 2020 have now been mitigated, allowing us to continue the takeover with a passion. We genuinely believe that the merger will be a good thing for all stakeholders, DELA and Yarden members alike. Together, the two collectives will stand stronger.

For now, we have to assume that interest rates will remain very low. This increases the importance of managing costs in general and those of funeral care in particular. The takeover should help rein in funeral cost inflation over the coming two years and, in doing so, offer our members the first fruits of the merger of the two organisations. In the long term, the cost savings will rely on managing personnel costs and IT-driven service provision. We are putting a strong focus on the digital transition. In 2020 we took major steps to simplify our processes and organise them in a more efficient way. In 2021 we aim to force a breakthrough in the insurance chain to realise a new start for an entirely new platform for all the group’s insurance activities.

While the continuing low interest rates are a significant burden for life insurers, our unique cooperative business model ensures us a robust solvency and we have complete confidence in the future. That said, the low interest leaves less room for profit distribution to our members. By managing inflation in funeral costs on the one hand and strengthening all cooperative services on the other, we aim to still play an important role for our members and clients and show society that solidarity works.

The Board thanks all stakeholders for their involvement. Together, with our colleagues in the funeral services on the frontline, we did a lot of good work and fulfilled our social responsibilities well. These efforts earned us considerable appreciation and many messages of support for which we are very grateful.

Eindhoven, 7 May 2021
DELA Cooperative

The Executive Board

Edzo Doeve, MAIA
Jack van der Putten, MMO
Jon van Dijk, RA

In accordance with part 9, book 2 of the Dutch Civil Code, the information presented in the section ‘In brief’, ‘Governance & risk management’, ‘Annexes’ and ‘Definition & abbreviations’ is considered part of the section ‘Executive Board report'. For reasons of presentation, this information is not repeated in this section.