Delta Lloyd Drops Plan to Sell Belgian Bank Unit

Dutch insurer Delta Lloyd NV abandoned plans to sell its Belgian bank, saying talks with a would-be buyer fell through on terms including the price.

The bank, which is profitable, will now stay part of Delta Lloyd and remain a channel for distributing life insurance and pension products in Belgium, the Amsterdam-based company said in a statement today.

Delta Lloyd, the second-biggest provider of group pensions in the Netherlands, put the Belgian unit up for sale a year ago to help boost its solvency and free up capital for investment. Moelis & Co. was hired to advise on the disposal, it said at the time.

In August the insurer said it was in talks with a party and that it expected an outcome before the end of the year. It has not identified the potential buyer.

Delta Lloyd Bank Belgium, which traces its roots to a wealth management firm founded in 1747, had 6.74 billion euros ($8.59 billion) in assets and reported a profit of 15.8 million euros last year, according to its annual report.