NN Group delivers continued solid performance in 3Q15
(Thomson Reuters ONE) -
Operating result increased and strong capital position
* 3Q15 operating result ongoing business of EUR 392 million, up 43% from
3Q14, supported by a private equity dividend, partly offset by an
unfavourable claims experience in Property & Casualty in the Netherlands
* Net result down 7% to EUR 329 million, due to lower non-operating items and
negative hedge results in Japan Closed Block VA
* Capital position remained strong with IGD ratio at 322%
* Holding company cash capital stable at EUR 1.6 billion, reflecting EUR 332
million dividends from subsidiaries and the payment of the 2015 interim
dividend of EUR 156 million and EUR 150 million share buy-back
* Free cash flow to the holding for the first nine months of 2015 was EUR
1,031 million driven by dividends from all segments
* Cumulative cost savings in the Netherlands of EUR 201 million compared with
2013
* New sales (APE) EUR 261 million, down 15% from 3Q14 at constant currencies
* AuM at Asset Management down 2% to EUR 180 billion compared with 2Q15,
mainly due to net outflows
Statement of Lard Friese, CEO
"Overall, our business continued to show a solid performance in the third
quarter of 2015 despite volatile financial markets. The strong increase in the
Group's operating result compared with the third quarter of 2014 was mainly
driven by Netherlands Life, supported by a large private equity dividend.
Insurance Europe also contributed to the increased result and continues to make
progress in shifting its product mix towards protection products. In Japan, our
focus on the SME segment is bearing fruit, as COLI protection sales are showing
double-digit growth. Overall sales for the Group were down, as we focus on
profitable growth in the low interest rate environment. We recognise that there
is more work to do to increase the net inflows of our asset management business
and to improve the combined ratio of the Dutch Non-life company.
Our solvency ratios remain solid, reflecting the strong capital generation of
our businesses. We were therefore able to complete another EUR 150 million share
buy-back in September in line with our policy to return excess capital to our
shareholders. This buy-back was part of ING's sell-down of another tranche of NN
Group shares, reducing its remaining holding to 25.8% of outstanding shares.
To deliver on our medium-term and long-term strategic objectives, we will
continue our focus on disciplined execution and innovation in our business
operations. Since 2013, we have reduced our cost base in the Netherlands by a
total of EUR 201 million. While this means that we have already achieved our
original cost-reduction target for the Group, further efficiency improvements
will remain a focus area, especially in the Netherlands. In helping to secure
the financial futures of our customers, we are innovating our products and
services. This year we have implemented several initiatives that employ new
technologies to digitally engage with our customers. By doing so, we aim to
continually improve their experience with us.
While we are pleased with another set of good results, we will further optimise
our businesses to deliver on our financial and non-financial objectives and
continue to create value for all our stakeholders - our customers, our
shareholders, our employees and society at large."
NN Group key figures
In EUR million 3Q15 3Q14 Change 9M15 9M14 Change
-------------------------------------------------------------------------------
Operating result ongoing business 392 274 43.0% 1,184 826 43.5%
Net result 329 354 -7.2% 1,205 391 208.5%
Net operating ROE 12.2% 8.3% 12.0% 8.9%
IGD Solvency I ratio 322% 283% 322% 283%
New sales life insurance (APE) 261 307 -15.0% 1,037 1,051 -1.3%
Asset Management AuM (end of period, in 180 180 -0.2% 180 180 -0.2%
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 our 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
Netherlands Life aims to benefit from its strong position in the pension market
and selectively capture growth opportunities in the Dutch market, driven by the
shift from defined benefit (DB) to defined contribution (DC) pension schemes, as
well as selectively pursuing buy-out opportunities. In preparation for the
expected changes in regulations, AZL, NN Life's pension administrator, and NN
Investment Partners are joining forces to establish a General Pension Fund
(Algemeen Pensioenfonds or 'APF'). NN's strong position in the pension market
was recently recognised, for the second year in a row, by the Dutch business
magazine Management Team. Their annual survey among managers ranks Nationale-
Nederlanden as best pension provider. Furthermore Netherlands Life focusses on
reducing expenses and gradually shift to higher-yielding assets, such as
mortgages and loans, in order to offset the negative impact of lower interest
rates on the investment margin. In the third quarter we further invested in
mortgages with an attractive yield.
Netherlands Non-life
Netherlands Non-life aims to improve underwriting performance and to expand in
specific market segments where there are clear opportunities for profitable
growth. The continued focus on exceeding customers' expectations and transparent
customer communication resulted in winning the Dutch Insurance Communication
Award, granted by AM, a leading insurance magazine, and GfK, provider of market
and consumer information. Another example of delivering excellent customer care
is our improved Net Promotor Score for the Claims Manager at Home
('Schademanager Thuis') service. Furthermore, a new awareness campaign called
the 'Nationale Inbrekersindex' was launched to help prevent burglary.
Netherlands Non-life has also broadened its experience in Usage-Based Car
Insurance with the launch of a third initiative called 'Voorop'. This is a new
usage-based proposition for the Dutch Retail market that registers driving
behaviour. Pay How You Drive, as the insurance technique is also referred to,
was introduced in pilot form (under the name of 'Fairzekering') in the
Netherlands last year. It won several innovation awards.
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. The Polish business, which was rebranded to
Nationale-Nederlanden Poland in July, launched a new campaign reinforcing the
importance of protection and offering customers clarity and guidance on how to
lead a healthy lifestyle and secure their financial futures. In August, an
awareness campaign was launched that features teenagers asking their parents
about their health, and about their financial futures. The main message of the
commercials is that parents should remain healthy to support their children, now
and in the future. Campaigns like these reinforce Nationale-Nederlanden Poland's
reputation as a knowledgeable partner that truly cares about its customers. NN
Slovakia recently launched a new life insurance option for children's
hospitalisation coverage, responding to customer and distributor demand for this
product. This demonstrates the active dialogue and the ongoing engagement NN
Slovakia has with its customers. This new option offers a daily allowance - paid
from the first day - when a child has to stay in hospital.
Japan Life
In the third quarter of 2015, Japan Life continued to diversify its product and
distribution. COLI protection sales increased by 26% at constant currencies
compared with the third quarter in 2014, partly driven by the launch of a new
term product addressing death and severe disability needs of SME owners up to
age 90. Bancassurance COLI sales increased by 21% year-on-year, excluding
currency effects, driven by higher bank activation and the continuing expansion
of the bank distribution network. In September, Japan Life's call center
received a Service & Hospitality Award for its excellent customer care. This
award programme was established in 2014 by the Japan Institute of Information
Technology.
Asset Management(1))
Assets under Management decreased to EUR 180 billion, reflecting net outflows as
well as negative market performance. In target markets, Asset Management plans
to protect and further expand its leading position and continues to develop a
more distinct range of products, including its sustainable product offering. The
NN Global Sustainable Equity strategy and the NN European Sustainable Equity
strategy reached a 15 and 10-year track record, respectively, in July and have
also been granted the ESG label from LuxFLAG. Both strategies have performed
well against their benchmarks and have seen strong client interest, driving
assets under management in sustainable equity strategies to EUR 2.2 billion.
Furthermore the European Central Bank recognised the expertise of NN Investment
Partners by extending the contract for the Asset-Backed Securities Programme.
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 10.0 billion from EUR 9.5 billion at the end of the second quarter. Customer
deposits (internet savings and bank annuities) grew to EUR 8.1 billion at the
end of the third quarter. NN Bank improved the accessibility of its products and
services by introducing the NN app. To further enhance its customer service NN
Bank has started sending a personal video message to customers who have taken
out a mortgage loan. This video addresses many practical questions about the
customer's mortgage, for example about installments, how to submit bills for a
construction depot or about the variable interest rate.
1) The segment Investment Management was renamed to Asset Management in the
third quarter of 2015
NN Group Profile
NN Group is an international insurance and asset management company, active in
more than 18 countries, with a strong presence in a number of European countries
and Japan. With around 11,500 employees the group offers retirement services,
insurance, investments and banking to more than 15 million customers. NN Group
includes Nationale-Nederlanden, NN and NN Investment Partners. NN Group is
listed on Euronext Amsterdam (NN).
Press call
Lard Friese and Delfin Rueda will host a press call to discuss the 3Q15 results
at 10.00 am CET on Wednesday 4 November 2015. Journalists can join the press
call via + 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 3Q15 results at 12.00 pm CET on Wednesday 4 November 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.
Financial calendar
* Capital Markets Event: 19 November * Annual General Meeting: 2 June
2015 2016
* Publication 4Q15 results: 25 * Publication 2Q16 results: 18
February 2016 August 2016
* Publication 1Q16 results: 26 May * Publication 3Q16 results: 17
2016 November 2016
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 3Q15 Financial Supplement and NN Group 3Q15 Analyst 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_Press_Release_3Q2015:
http://hugin.info/160538/R/1963928/716727.pdf
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originality of the information contained therein.
Source: NN Group NV via GlobeNewswire
[HUG#1963928]
Unternehmensinformation / Kurzprofil:
Datum: 04.11.2015 - 07:01 Uhr
Sprache: Deutsch
News-ID 431761
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