NN Group reports strong 3Q14 results
(Thomson Reuters ONE) -
Robust capital position and improved operating result
* Operating result ongoing business of EUR 274 million, up 16.6% from 3Q13,
supported by the expense reduction programme in the Netherlands and lower
debt funding costs. Year-to-date operating result ongoing business up 20.6%
* Net result improved to EUR 354 million versus a net loss of EUR 652 million
in 3Q13, which included a loss on the divestment of ING Life Korea. Year-to-
date net result 18.4% lower, reflecting a one-off charge in 1Q14 for making
the closed defined benefit pension plan in the Netherlands financially
independent
* Robust capital position maintained; IGD ratio up at 283% and holding company
cash capital stable at EUR 1.2 billion
* Year-to-date cost reductions of EUR 108 million achieved in the Netherlands
* New sales up 17.2%, at constant currencies, supported by Japan Life and
pension renewals in Netherlands Life
* Assets under management at Investment Management increased to EUR 180
billion driven by strong market performance
Statement of Lard Friese, CEO
"NN Group delivered a set of strong results demonstrating progress towards our
medium term objectives. As part of the listing process resulting in the IPO of
NN Group on 2 July, we presented our strategic financial objectives in June this
year with a focus on capital generation and earnings improvement.
Our capital position remains strong, mainly supported by capital generation from
operating entities, a pre-IPO capital injection and favourable markets. At the
same time, we continue to reduce expenses. With the successful implementation of
the transformation programme in the Netherlands we are on track to meet our EUR
200 million expense reduction target by 2016, with realised cost reductions of
EUR 108 million this year so far.
The core of our strategy is to deliver an excellent customer experience. Our
continued strong new sales growth in all regions underscores the dedication of
our employees to keep our customers at the heart of everything we do. This is
demonstrated by the increased sales in Japan Life, Insurance Europe, NN Bank and
the pension business in the Netherlands.
Although we are still at the beginning of our journey as an independent company
we are pleased with the strong performance and the progress we have made so far
on delivering on our strategic objectives."
NN Group key figures
In EUR million 3Q14 3Q13 Change 9M14 9M13 Change
-------------------------------------------------------------------------------
Operating result ongoing business 274 235 16.6% 826 685 20.6%
Net result 354 -652 391 479 -18.4%
Net operating ROE 8.3% 8.3% 8.9% 9.4%
IGD Solvency I ratio 283% 208% 283% 208%
New sales life insurance (APE) 307 272 12.9% 1,051 935 12.4%
Investment Management AuM (End of period, 180 176 2.3% 180 176 2.3%
in EUR billion)
Strategy and business highlights
NN Group's strategy is to deliver an excellent customer experience, based on
great service and long-term relationships. We aim to achieve this by offering
transparent products and services that serve customers' lifetime needs. We do
this by making our multi-access distribution network available to customers
wherever required, and by maintaining effective operations that deliver an
excellent customer service. The strategic financial objectives are to generate
capital and improve earnings. The year-to-date results demonstrate the initial
progress made in delivering these. Improved operating results are supported by
significantly reduced expenses. The strong commercial performance is
demonstrated by sales growth across the group.
Netherlands Life
In the Netherlands Life segment, expenses are in part driven by the positive
impact of the transformation programme in the Netherlands. The investment margin
increased due to higher dividends on private equity, the shift to higher-
yielding assets and higher invested volumes. New sales (APE) continued to grow
driven by pension contract renewals. The capital position of NN Life remains
strong with a Solvency I ratio of 252%. The strong position in the pension
market has recently been recognized by Dutch business magazine Management Team.
Their annual survey among managers ranks Nationale-Nederlanden first in pensions
and second in insurance.
Netherlands Non-life
The successful reduction of expenses related to the transformation programme in
the Netherlands also contributed to an increased operating result in the
Netherlands Non-life segment. The operating result for Property & Casualty (P&C)
suffered from a negative claims development, while in Disability & Accident
(D&A) the results improved due to management actions to restore profitability
and a favourable claims development.
Insurance Europe
Insurance Europe is moving its business mix towards protection products as well
as repositioning its retirement services towards solutions that provide
customers with downside protection in the low interest rate environment. The
operations continue to increase retention and new business through an improved
customer experience. The year-to-date sales increased 10.8% (excluding currency
effects) supported by higher life sales in most countries. At the same time, the
year-to-date expenses decreased.
Japan Life
Japan Life has increased its agency productivity and diversified its
distribution channels by substantially expanding its bancassurance channel
(recruiting 10 new bank distribution partners this year). Together with the more
positive sentiment created by the steady economic recovery in Japan this
resulted in substantially higher new sales with a year-to-date increase of
21.2%, excluding currency effects.
Investment Management
Investment Management aims to grow its third party business by following a
tailored approach for each client segment. In its retail business and in its
home markets, Investment Management plans to protect and further expand its
leading positions and continues to develop a more distinct range of equity
products. Assets under management increased to EUR 180 billion this quarter
driven by favourable market performance. After a successful tender process,
Investment Management has been appointed as one of the four parties to conduct
the Asset-Backed Securities Purchase Programme of the European Central Bank.
This mandate is a recognition of the expertise of Investment Management in
Asset-Backed Securities trading.
NN Bank
NN Bank's mortgage portfolio increased to EUR 7.4 billion from EUR 6.2 billion
at the beginning of this year in line with its strategy. This increase is the
result of new production and the transfer of ING Bank mortgages, partly offset
by the sale of mortgages to NN Life. NN Bank continues to build its product
offering in the Netherlands with the introduction of a consumer lending product
in February of this year and a credit card in October. As part of our corporate
citizenship programme that focuses on improving people's financial well-being,
NN Bank donates 10 eurocent for each credit card transaction to the Linda
Foundation, a charity that helps (single-parent) families in financial distress.
Consumer savings continued to grow by offering competitive rates and attractive
products, leading to total customer deposits of EUR 6.6 billion at the end of
the third quarter.
NN Group Profile
NN Group is an insurance and investment management company with a strong,
predominantly European presence in more than 18 countries. With around 12,000
employees the group offers retirement services, insurance, investments and
banking to more than 15 million customers. NN Group includes Nationale-
Nederlanden, ING Insurance Europe, ING Investment Management and ING Life Japan,
and is listed on Euronext Amsterdam
(ticker: NN).
Media conference call
Lard Friese and Delfin Rueda will host a media conference call to discuss the
3Q14 results at 9.30 a.m. CET on Wednesday 5 November 2014. Journalists can join
the conference call at + 31 20 531 5863.
Investor conference call and webcast
Lard Friese and Delfin Rueda will host an analyst and investor conference call
to discuss the 3Q14 results at 10:30 a.m. CET on Wednesday 5 November 2014.
Members of the investment community can join the conference call at
+31 20 531 5865 (NL), +44 203 365 3210 (UK) or +1 866 349 6093 (US) and via live
audio webcast at www.nn-group.com.
Financial calendar
* Publication 4Q14 results: Wednesday, 11 February 2015 (provisional)
* Publication 1Q15 results: Thursday, 7 May 2015 (provisional)
* Annual General Meeting: Thursday, 28 May 2015
Contact information
------------------------------- ----------------------------------
Press enquiries Investor enquiries
Ingeborg Klunder Investor Relations
+31 20 541 6526 +31 20 541 5464
mediarelations(at)nn-group.com investor.relations(at)nn-group.com
------------------------------- ----------------------------------
Additional information on nn-group.com
* NN Group 3Q14 Financial Supplement
* NN Group 3Q14 Analyst Presentation
* Photos of NN Group executives, buildings and events are available for
download at Flickr
Important legal information
NN Group's Annual Accounts are prepared in accordance with International
Financial Reporting Standards as adopted by the European Union ("IFRS-EU").
In preparing the financial information in this document, the same accounting
principles are applied as in the NN Group N.V. condensed consolidated interim
financial information for the period ended 30 June 2014. All figures in this
document are unaudited. Small differences are possible in the tables due to
rounding.
Certain of the statements contained herein are not historical facts, including,
without limitation, certain statements made of future expectations and other
forward-looking statements that are based on management's current views and
assumptions and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially from those
expressed or implied in such statements. Actual results, performance or events
may differ materially from those in such statements due to, without limitation:
(1) changes in general economic conditions, in particular economic conditions in
NN Group's core markets, (2) changes in performance of financial markets,
including developing markets, (3) consequences of a potential (partial) break-up
of the euro, (4) the implementation of the EC Restructuring Plan, (5) changes in
the availability of, and costs associated with, sources of liquidity as well as
conditions in the credit markets generally, (6) the frequency and severity of
insured loss events, (7) changes affecting mortality and morbidity levels and
trends, (8) changes affecting persistency levels, (9) changes affecting interest
rate levels, (10) changes affecting currency exchange rates, (11) changes in
investor, customer and policyholder behaviour, (12) changes in general
competitive factors, (13) changes in laws and regulations, (14) changes in the
policies of governments and/or regulatory authorities, (15) conclusions with
regard to accounting assumptions and methodologies, (16) changes in ownership
that could affect the future availability to us of net operating loss, net
capital and built-in loss carry forwards, (17) changes in credit and financial
strength ratings, (18) NN Group's ability to achieve projected operational
synergies and (19) the other risks and uncertainties detailed in the Risk
Factors section contained in recent public disclosures made by NN Group and/or
related to NN Group (such as the most recent annual report of ING Groep N.V.).
Any forward-looking statements made by or on behalf of NN Group speak only as of
the date they are made, and, NN Group assumes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new information
or for any other reason. This document does not constitute an offer to sell, or
a solicitation of an offer to buy, any securities.
Download press release:
http://hugin.info/160538/R/1868538/656814.pdf
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other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: NN Group NV via GlobeNewswire
[HUG#1868538]
Unternehmensinformation / Kurzprofil:
Datum: 05.11.2014 - 07:07 Uhr
Sprache: Deutsch
News-ID 349741
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