NN Group posts strong 2Q15 results
(Thomson Reuters ONE) -
Operating result significantly higher
* 2Q15 operating result ongoing business of EUR 488 million, up 90% from
2Q14, driven by improved results in all segments and supported by a private
equity dividend and technical provision releases in the Netherlands
* Net result up 56% to EUR 392 million, reflecting the higher operating result
* Expense reduction target in the Netherlands essentially achieved, with EUR
198 million cumulative costs savings compared with 2013
* Capital position remained strong despite unfavourable market movements: IGD
ratio at 306%; holding company cash capital increased to EUR 1.6 billion
* Interim dividend over the first half of 2015 of EUR 0.46 per ordinary share,
or EUR 156 million in total
* New sales (APE) EUR 278 million, down 10% from 2Q14 at constant currencies,
mainly in Netherlands Life
* AuM at Investment Management decreased from 1Q15 to EUR 184 billion due to
higher interest rates
Statement of Lard Friese, CEO
"Our second-quarter results were very strong and contributed to a good first
half of the year. Overall operating result from the ongoing business was 90%
higher, supported by several favourable items in the Netherlands, including a
large private equity dividend. Even excluding these items, we saw healthy
operating performance in all of our businesses, especially in Netherlands Life
and Insurance Europe. With cumulative expense savings of EUR 198 million, we
have essentially achieved our overall cost savings target of EUR 200 million in
the Netherlands ahead of schedule. While we are pleased with another quarter of
strong results, there is room for further improvement. We will continue to focus
on efficiency, improving the combined ratio of our Non-life business,
strengthening the capabilities of our asset manager and increasing the
profitability of our international insurance businesses.
On 2 July, we celebrated the first anniversary of NN Group's listing on the
Euronext Amsterdam stock exchange. In the first six months of this year, ING
Group gradually sold down its stake in NN Group to 37.6% of outstanding shares.
As part of ING's sell-down in May, we completed a EUR 150 million share buy-back
in line with our policy to return excess capital to our shareholders, while
preserving a robust capital position. We will distribute an interim dividend of
EUR 0.46 per ordinary share. In line with our dividend policy, we intend to pay
a full-year ordinary dividend in accordance with our medium-term financial
performance, while envisaging a pay-out ratio of 40-50% of the net operating
result from the ongoing business.
Across our businesses we continue our customer-focused strategy of providing
transparent products and services through tailored multi-access distribution,
and efficient and effective operations. In Japan, we are catering to the needs
of SME business owners with a new protection product offering death or severe
disability coverage up to the age of 90. In terms of distribution, we are making
more of our services accessible to customers anywhere and anytime. For example,
in Turkey we launched a new client portal that makes it easier for customers to
conduct transactions online also via mobile devices. In the Netherlands, we
launched our newly developed platform for our four core pension products, while
improving efficiency. Our rebranding programme also gained momentum during the
second quarter, media campaigns in various countries further raised awareness
about our brand promise 'You matter'.
Going forward, we will continue to execute our strategy in order to achieve our
financial objectives with a focus on capital generation and earnings
improvement."
NN Group key figures
In EUR million 2Q15 2Q14 Change 6M15 6M14 Change
-------------------------------------------------------------------------------
Operating result ongoing business 488 257 89.9% 792 551 43.7%
Net result 392 252 55.9% 877 37
Net operating ROE 14.9% 8.7% 11.8% 9.3%
IGD Solvency I ratio 306% 272% 306% 272%
New sales life insurance (APE) 278 305 -8.6% 776 744 4.3%
Investment Management AuM (end of period, 184 177 4.2% 184 177 4.2%
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 and whenever they want, and by maintaining effective operations that
deliver excellent customer service.
Netherlands Life
In the Netherlands Life segment, the focus is to reduce expenses and gradually
shift to higher-yielding assets. Both of these priorities continued to deliver
results in the second quarter. Another pillar of NN Life's strategy is to
benefit from its strong position in the pension market and selectively capture
growth opportunities. Pension communication and awareness are important for
customers to secure their financial future. That is the idea behind the
'Pensioen Ophelder Service' which was launched in the second quarter. This
service has been designed for people who have built up pension rights with
multiple employers and provides insight in their pension. This information can
help them decide whether transferring the money to the pension fund of a new
employer would be beneficial or not. New sales declined this quarter, mainly due
to lower group pension renewals and lower sales of pension contracts. Cost
reductions continued this quarter contributing to achieving the cumulative cost
savings target in the Netherlands.
Netherlands Non-life
Netherlands Non-life focuses on offering transparent products and services.
Ongoing management actions to improve underwriting performance resulted in a
higher operating result, especially in Motor. The product rating index Moneyview
awarded the Nationale-Nederlanden Retail Home Insurance product five stars (the
maximum) for its terms and conditions. This product includes a guarantee against
underinsurance with few restrictions or exclusions, as well as comprehensive
coverage during repairs, renovation or the construction of a home.
Insurance Europe
Insurance Europe is shifting its business mix towards protection products and
repositioning its savings and retirement products in response to the low
interest rate environment. In line with the aim to provide customers with easy
access to NN's products and services, NN Hayat ve Emeklilik in Turkey launched a
renewed client portal, as well as a new mobile branch app. NN Group has also
started an international partnership with the non-profit organisation Junior
Achievement Europe as part of our corporate citizenship programme, NN Future
Matters. NN and JA Europe have joined forces to empower youth in the area of
financial literacy, entrepreneurship and workforce readiness. In the second
quarter Junior Achievement awarded NN Romania the title of 'Investor in
Education' 2015.
Political and economic turbulence in Greece continues. NN Group is present in
Greece through NN Hellas, which offers life and health insurance products. Given
the situation, NN Hellas has been closely managing operations with a focus on
continuing its service to customers. NN Group's direct exposure to Greek assets
is limited in the context of the overall size of the Group.
Japan Life
Japan Life continued to execute its business diversification strategy in the
second quarter of 2015. A new product called Smart Term, was added to the COLI
protection product range. It provides death or severe disability cover for SME
owners up to the age of 90. We also successfully expanded our bancassurance
network, with six new banks distributing our COLI products.
Investment Management
Assets under Management decreased to EUR 184 billion, mainly due to negative
market performance as a result of higher interest rates in the second quarter
of 2015. Investment Management aims to grow its third-party business by
following a tailored approach for each client segment. In target markets,
Investment Management plans to protect and further expand its leading position
and continues to develop a more distinct range of products, among which its
sustainable product offering. Assets under Management in its sustainable equity
and fixed income products stood at EUR 4.2 billion at the end of the second
quarter of 2015. Furthermore, Investment Management announced the launch of a
sustainable emerging market loan fund in cooperation with Dutch development bank
FMO.
NN Bank
NN Bank continued to expand its mortgage and customer savings activities. In
line with its strategy, NN Bank's mortgage portfolio increased to EUR 9.5
billion from EUR 8.6 billion at the end of the first quarter. Customer deposits
(internet savings and bank annuities) grew to EUR 8.0 billion at the end of the
second quarter. NN Bank's phased-in Common Equity Tier 1 ratio increased to
14.2% at the end of the second quarter from 13.8% at the end of the first
quarter. This increase reflects a capital injection of EUR 57 million by NN
Group in NN Bank using the proceeds of a capital injection from ING Group to
fulfill a commitment to the European Commission.
Solvency II
NN Group has applied for the usage of a Partial Internal Model for NN Group and
the insurance entities in the Netherlands. The Solvency II capital ratio remains
subject to significant uncertainties, including the final interpretations of the
Solvency II regulations and the regulatory approval process.
Interim dividend
Effective from 2015, NN Group intends to pay interim dividends calculated at
approximately 40% of the prior year's full year dividend, barring unforeseen
circumstances. NN Group will pay a 2015 interim dividend of EUR 0.46 per
ordinary share, or EUR 156 million in total based on the current number of
outstanding shares (net of treasury shares). The 2015 interim dividend will be
paid either in cash or ordinary shares from the share premium reserve at the
election of the shareholder. To neutralise the dilutive effect of the newly
issued shares for the stock dividend on earnings per ordinary share, NN Group
will repurchase ordinary shares from ING Group equal to the number of shares
that NN Group will issue as stock dividend at a price similar to the price used
to calculate the stock fraction for the stock dividend. The NN Group ordinary
shares will be quoted ex-dividend on 10 August 2015. The record date for the
dividend will be 11 August 2015. The election period will run from 10 August up
to and including 31 August 2015. The stock fraction for the stock dividend will
be based on the volume weighted average price of NN Group ordinary shares on
Euronext Amsterdam for the five trading days from 25 August through
31 August 2015. The dividend will be payable on 7 September 2015.
In line with its dividend policy, NN Group intends to pay an ordinary dividend
in line with its medium term financial performance and envisages an ordinary
dividend pay-out ratio of 40-50% of the net operating result from ongoing
business.
NN Group Profile
NN Group is an international insurance and investment management company, active
in more than 18 countries, with a strong presence in a number of European
countries and Japan. 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, NN (formerly known as ING Insurance)
and NN Investment Partners (formerly known as ING Investment Management). NN
Group is listed on Euronext Amsterdam (NN).
Investor conference call and webcast
Lard Friese and Delfin Rueda will host an analyst and investor conference call
to discuss the 2Q15 results at 10:30am CET on Wednesday 5 August 2015. Members
of the investment community can join the conference call at +31 20 531 5865
(NL), +44 203 365 3210 (UK), +1 866 349 6093 (US) or follow the webcast on
www.nn-group.com.
Press call and webcast
Lard Friese and Delfin Rueda will host a press call to discuss the 2Q15 results
at 12.30pm. CET on Wednesday 5 August 2015. Journalists can join the press call
via + 31 20 531 5863 or follow the webcast on www.nn-group.com.
Financial calendar
* Publication 3Q15 results: Wednesday 4 November 2015 (provisional)
* Capital Markets Event: Thursday 19 November 2015 (provisional)
Contact information
------------------------------ ----------------------------------
Press enquiries Investor enquiries
Ward Snijders Investor Relations
+31 6 4685 0950 +31 88 663 5464
ward.snijders(at)nn-group.com investor.relations(at)nn-group.com
------------------------------ ----------------------------------
Additional information on www.nn-group.com
* NN Group 2Q15 Financial Supplement, NN Group 2Q15 Analyst Presentation and
NN Group 2Q15 Press Presentation
* Photos of NN Group executives, buildings and events are available for
download at Flickr
Important legal information
NN Group's consolidated annual accounts are prepared in accordance with
International Financial Reporting Standards as adopted by the European Union
("IFRS-EU") and with Part 9 of Book 2 on the Dutch Civil Code.
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 2015.
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 contained in recent public disclosures made by NN Group
and/or related to NN Group.
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.
NN Group 2Q2015 Press Release:
http://hugin.info/160538/R/1943706/703955.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
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#1943706]
Unternehmensinformation / Kurzprofil:
Datum: 05.08.2015 - 07:08 Uhr
Sprache: Deutsch
News-ID 411548
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contact information:
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