Delta Lloyd will use existing shares held by U.K. insurer Aviva PLC (AV.LN) for its partial initial public offering on the Amsterdam stock exchange, the Dutch financial company's chief executive told Dow Jones Newswires on Thursday.

No new shares will initially be issued for the IPO, CEO Niek Hoek said after Aviva and Delta Lloyd announced earlier in the day that they planned a partial IPO sometime in the future, depending on developments in the market.

"Aviva wants to cash in on Delta Lloyd's capital, and our capital position of EUR4 billion is strong, so we don't need to raise new capital with new shares," Hoek said, emphasizing that the IPO was a joint decision by Aviva and Delta Lloyd's board.

Aviva holds 92% of Delta Lloyd. Aviva CEO Andrew Moss said Aviva would like to retain a "residual majority" when it sells a stake in Delta Lloyd. "I don't think there's any point in doing a minority initial public offering that would, for example, be less than 25% or 30%," he said.

Analysts said it is nearly impossible at this stage to estimate how much Aviva might raise through a partial IPO, given that no exact stake amount or time frame has been discussed. One analysts said that, after a look at Delta Lloyd's earnings statement, the current full value of the company could be estimated at about EUR4 billion or slightly less.

Hoek, meanwhile, said that his company has ambitions of becoming the insurance market leader in the Netherlands and wants to become a Top 5 player in the Belgian insurance market.

"We now have the No. 8 position in Belgium and still have a long way to go to become a Top 5 player there," Hoek said.

Hoek said that Delta Lloyd is "considering all strategic options" for its German operations after a news reports this week citing insurance sources said that Aviva was looking to sell Delta Lloyd's unit in that country.

In general, Delta Lloyd will focus on core markets in the Netherlands and Belgium and will dispose minority positions in other markets, Hoek said. "You need scale to compensate for basic administrative and other costs and to be able to make money," he said.

Delta Lloyd's CEO said that the IPO should help his company "to remain independent in the Netherlands and Belgium, to help Delta Lloyd to play an active role in the consolidation process, to have access to capital markets and to better profile itself as market leader."

He refrained to say when the IPO would take place. "But we have thought about this thoroughly and decided to announce it now. Make you own conclusions," he said.

Additionally, he pointed at the strong capital position of the insurer and the solid way it has come through the economic crisis so far. "Delta Lloyd was about first to say in March that the crisis is bottoming out and that the first signs of recovery are there," he said.

Delta Lloyd's CEO also didn't want to say how his company wants to take a position in sector consolidation.

"Part of it is to be decided by the Dutch government, which has nationalized and subsidized several players in the Dutch market. For economic reasons, it would be good if the Dutch State would bring those companies back to the market soon. We hope that the current situation will not last too long, as it is disturbing competition relations," he said.

"But it is good that the government has done what it did to avoid severe financial damage for many people," Hoek added, referring to the nationalization of ABN Amro and Fortis Netherlands and financial support of ING (ING), Aegon (AEG) and SNS Reaal (SR.AE).

"In the past, in the insurance market we have seen two main sorts of consolidation: bigger companies merging with each other and smaller companies being taken over. I think this trend will continue," he said.

Hoek said that Delta Lloyd has succeeded in raising its market share to 10% from 5% in the Dutch life and damage market in the past 10 years and that his company has the ambition to raise it to 20% in the next 10 years.

He said that after an IPO, Delta Lloyd's strategy won't be ruled by short-term shareholders interests. "We have been a strong and solid insurance company for more than 200 years. We focus on long-term returns and have for instance no risky investment banking activities," Hoek said.

He said that Delta Lloyd also has no intention to become a combined bankassurer. "For many years, we have used the distribution retail banking network of ABN Amro to sell our insurance products and that concept works well," he said.

He emphasized that, in the current insurance market, margins are declining. "Customers demand more value for money. This means that we have to lower our cost base and improve efficiency. We do this by sharing IT and other sources for our different brands and products."

Aviva said late Thursday that Morgan Stanley (MS) had been hired to advise on the IPO. Delta Lloyd said that Goldman Sachs (GS) was its "home banker" in response to reports that the bank had also been hired.

- By Bart Koster; Dow Jones Newswires; +31 20 571 5201; bart.koster@dowjones.com

(Vladimir Guevarra in London contributed to this report.)