NETHERLANDS - The €1.4bn pension fund of insurer Delta Lloyd Group has granted its participants full indexation for 2009.

The scheme's pensioners will receive a 2.53% on their investments to compensate for inflation, while 3% - based on the salary index - will be added to the pension claims of its active members, according to a statement.

Officials attributed the result to both the scheme's risk management, which allowed for a cover ratio of 119%, as well as the agreement with employer Delta Lloyd Services to contribute sufficiently for full indexation until 1 January 2011.

Delta Lloyd Pensioenfonds split its assets last year into a liabilities-matching portfolio, consisting of over 90% of its assets, while the remaining assets were placed in a return portfolio - aimed at meeting indexation - invested in equity and real estate.

According to Arie Kool, the scheme's chief executive, the interest risk of the liabilities has been gradually hedged up to almost 100% through swaps.

The Delta Lloyd scheme has almost 5,000 active participants, 4,500 deferred members and 2,800 pensioners.

Its administration is largely carried out by Delta Lloyd Life Insurance, while its asset management has been outsourced to Delta Lloyd Asset Management through an investment mandate.

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