The DELA cooperative plans to take over Yarden Funeral Organization. This concerns the insurer, the funeral company and all underlying organizations and participations. Despite last summer's recovery plan, Yarden sought a structural solution for a suitable, strong party that could take over its activities. DELA is such a strong party.
Today the directors of Yarden and DELA signed the agreement for the takeover. In the new situation, the Yarden members can count on financial stability and there is room for more inflation protection and profit sharing for members. Thanks to this takeover, the DELA cooperative will acquire a large number of funeral centers and crematoriums that are complementary to those of DELA.
If the regulators approve the intended takeover, Yarden will be an official part of DELA from the beginning of 2020. DELA takes ample time for the merger and integration: DELA wants to be ready by 2022 at the latest. The personnel consequences in the short and long term cannot yet be specified in detail.
“We expect jobs to disappear at Yarden's head office in Almere. It concerns staff positions and jobs in the insurance business. This is less likely in funeral services because our facilities and locations are largely complementary to each other. In any case, the employees can count on a neat social plan, drawn up in close consultation with the works councils, ”says managing director DELA, Edzo Doeve.
Best solution for all Yarden policyholders
Yarden had been in financial difficulties for some time due to the persistently low interest rates and the financial obligation for 390.000 parcel policies. The Yarden management has taken measures to turn the tide and this has been successful in the short term. For a structural solution for the 1 million members, Yarden looked for a suitable, strong party that can take over its activities.
"We are convinced that we are a good match and that an acquisition by DELA offers the best prospects for all Yarden policyholders," said Derck van der Vegte, chairman of the board of the Yarden Association.
For Yarden members, nothing will change for the time being: the policy will continue as normal, and members or their next of kin can continue to count on the usual services.
The recovery action that Yarden had to implement for the package policies this summer remains in force. DELA does meet Yarden's package policy holders. In the event of death in the next ten years, surviving relatives do not have to pay anything with regard to parcel coverage. In addition, a substantial capital injection and extra reservations will create much more room for future inflation protection for all Yarden members.
The Yarden Association continues independently
Yarden has a strong volunteer organization that helps with grief and breaks taboos around death. This association - which celebrated its 100th anniversary in December - will now stand on its own two feet with the help of DELA. This continues the ideas of Yarden's legal predecessors AVVL and NUVA .:
“In addition to the Yarden members, DELA members will also be able to benefit from this wealth of knowledge and help. Our ambition is that the Yarden Association will eventually reach the entire Dutch population, ”says Van der Vegte.
Stronger collective positive for everyone
The DELA cooperative is not for profit, it must protect the interests of its members in the short and long term. Due to a larger and stronger collective, DELA members will eventually also have more room for profit sharing and inflation protection. Due to the aforementioned reservations and capital injection to accommodate Yarden policyholders, DELA's solvency ratio falls from 373% (end 2018) to 269%.
“The takeover requires an investment in the short term. Our solvency is declining, but nevertheless remains strong. The fact that the collective is growing is positive for everyone. By merging both funeral services, we will soon be offering our members even better national coverage of our own funeral homes and crematoria. Thanks to synergy benefits, solvency will increase again in the long term, as will the scope for profit sharing. Both DELA members and Yarden members benefit from this. ”, Says Edzo Doeve.
Also read: Funeral expenses for transport are not always fully covered in policy
