NN Group reports 3Q16 results
(Thomson Reuters ONE) -
Strong capital position and net result
* Operating result ongoing business of EUR 319 million compared with EUR 392
million in 3Q15, which was supported by EUR 127 million private equity
dividends versus EUR 13 million in 3Q16; excluding these, the operating
result improved by 15.5%
* Net result of EUR 436 million versus EUR 329 million in 3Q15, mainly driven
by higher capital gains and revaluations as well as a lower hedge-related
loss for Japan Closed Block VA
* Cost savings in the Netherlands of EUR 21 million in 3Q16, bringing the
expense base down to EUR 765 million
* Solvency II ratio decreased to 236% from 252% at 2Q16 primarily due to
market impacts
* Holding company cash capital increased to EUR 2.4 billion driven by
dividends from several units, partly offset by the payment of the 2016
interim dividend and share buybacks
Statement of Lard Friese, CEO
'Despite the prevailing uncertain economic conditions, we continue to deliver on
our targets to generate capital and improve earnings, while bringing our brand
promise 'You matter' to life for our customers every day. We maintain a strong
balance sheet, with a solvency ratio of 236%.
Given the market dynamics and the competitive operating environment, we believe
there is a clear and compelling logic to bring consolidation to the Dutch
insurance market. Being one of the best capitalised and less leveraged insurance
companies in Europe, NN Group is well-positioned to take a significant step in
this consolidation process. On 5 October, we announced our intention to make an
offer to acquire all issued and outstanding ordinary shares of Delta Lloyd. We
see strong merit in a combination of Delta Lloyd and the Dutch and Belgian
activities of NN Group, and remain open to a constructive and substantive
dialogue with Delta Lloyd to come to a recommended transaction. We consider this
potential transaction to be financially and strategically compelling and
beneficial to both companies' stakeholder groups.
We take a disciplined and rational approach in executing our strategy, and
regardless of the outcome of the above-mentioned process, will continue to focus
on earnings improvement and free cash generation - while maintaining a strong
balance sheet and solvency position. At the same time we are committed to
innovating our businesses in order to keep improving our services and products
to customers, and proactively respond to the trends in our sector.
Our strong customer relationships were reflected in our performance in the first
nine months. In the Netherlands, NN Bank is welcoming new customers in the
savings and mortgage market and growing its operating result. NN Life Japan
entered into a long-term collaboration with Sumitomo Life Insurance focusing on
our COLI products for small and medium-sized enterprises. New sales at Japan
Life grew more than 22% year-on-year, excluding currency effects, driven by the
launch of a critical illness COLI product. And in this quarter NN Investment
Partners was able to attract EUR 600 million of net inflows in Third-Party
assets.
NN Group has a history that stretches back more than 170 years. We have been an
active member of society, involved in the lives of our customers, and doing what
we do best - helping people secure their financial futures. We want to
contribute to the well-being of society and have the ambition to further
integrate ethical, social and environmental components into our core strategy.
We feel encouraged by the improvement of our position in the ranking of the Dow
Jones Sustainability Index to 77 points (out of 100), which places NN Group in
the top quartile of the global insurance industry.'
NN Group key figures
In EUR million 3Q16 3Q15 Change 9M16 9M15 Change
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Operating result ongoing business 319 392 -18.7% 945 1,184 -20.2%
Net result 436 329 32.6% 1,041 1,205 -13.6%
Net operating ROE 8.1% 12.2% 8.4% 12.0%
Solvency II ratio(1)) 236% 247% 236% 247%
Note: All footnotes are included on page 26
Quarterly Business Update
NN Group's strong financial position during the first nine months of 2016
reflects the resilience of its businesses in an environment which continues to
be characterised by low interest rates and market volatility. This provides a
solid foundation for executing its strategy, which is to deliver an excellent
customer experience based on transparent products and services and long-term
relationships. NN Group aims to help people secure their financial futures, and
is committed to delivering products and services that are easy to understand and
meet customers' lifetime needs.
Transparent products and services
NN Life Japan launched a new Corporate-Owned Life Insurance (COLI) critical
illness product in July, driving significant growth of new sales in the third
quarter. Our Dutch Non-life business launched a marketing campaign in Belgium in
the third quarter to promote its new Home and Family insurance product covering
Building and Contents, as well as legal aid and liability. The product involves
a fast online subscription process and initial results are encouraging.
NN Hellas, our insurance company in Greece, was the first to introduce the
Growing Guarantee product in July 2016. This product is less capital intensive
and provides a guarantee for customers with upward potential. In the fourth
quarter of 2016, this product will also be made available through NN Hellas'
bancassurance partner Piraeus Bank.
Capturing growth
The fundamental need of people to protect themselves against uncertainties will
continue to drive growth in the insurance industry over the long-term. NN Group
continues to adapt its businesses to optimally capture this growth potential.
For example, in Hungary, NN launched a special programme for clients with
maturing policies, offering them tailored advice from financial advisors. This
way, NN is fostering customer relationships by recognising and rewarding long-
term loyalty.
NN Hayat ve Emeklilik, our business in Turkey, is developing a new pension
product to meet both customers' needs and regulatory requirements following a
new auto-enrollment pension law passed in August. Under this law, which will be
effective as of 1 January 2017, all employees under the age of 45 will be
enrolled in the new compulsory pension system while their employers can select a
pension company. In the Netherlands, NN Bank welcomed over 7,000 new customers
during the third quarter, as well as another 13,600 insurance customers through
cross-selling efforts. And in this quarter NN Investment Partners was able to
attract net inflows from third parties.
Multi-access distribution
NN Group serves its customers through multiple channels, comprising tied agents,
bancassurance partners, brokers and direct channels. It is our aim to achieve
profitable growth through multi-access distribution. In line with this strategy,
NN Life Japan recently announced that it has entered into a long-term
collaboration with Sumitomo Life Insurance. Sumitomo Life Insurance will sell NN
Life Japan's COLI products to Small and Medium-sized Enterprises (SMEs) through
its nationwide tied agency network. The agreement also provides a framework for
collaboration on potential future product initiatives.
Effective and efficient operations
NN Group aims to make its processes as efficient and effective as possible
across all segments, and is sharpening its client focus tailored by type and
country, increasing organisational agility. In the Netherlands, the strategy is
centred around providing digital, personal and relevant services with the aim of
enhancing the customer experience. As part of this strategy, Nationale-
Nederlanden continues to expand its digital outreach to customers via its 'My
NN' web portal. In the third quarter, it introduced My Mortgage Application,
which makes it possible to track and trace the status of applications, and also
made available online Consumer Credit and Revolving Credit applications. As a
result of these digital expansions, the number of visitors on My NN has
increased to 200,000 visitors on average each month.
In November 2016, our general pension fund 'De Nationale APF', which was set up
by AZL, NN Life's pension administrator, and NN Investment Partners received its
license from DNB. De Nationale APF is an independent entity which provides an
attractive solution for pension funds and employers to comply with increasingly
complex pension regulations and to benefit from economies of scale.
The international business continues to focus on protection products via
bancassurance channels and tied agents. In addition, sales channels are being
digitalised, leading to more efficient operations. The implementation of digital
solutions in the international businesses is progressing well. Following the
example from Spain, Poland, the Czech Republic and Slovakia also launched
paperless sales processes. This quarter, NN Hungary introduced an online client
portal, NN Direkt, which is the first online client portal in the market with an
audited electronic signature. NN Direkt increases the means of communication
with customers, while simultaneously reducing costs.
Innovation
In July, the Dutch Non-life business launched a pilot for a new customer service
called 'prevention scan', which provides for an independent Prevention Coach to
perform a comprehensive check on a client's house. The safety assessment by the
coach is accompanied by tailor-made advice on how to improve fire safety,
prevent burglary and avoid water damage. NN Non-life also offers assistance to
implement these safety improvements.
Other events
Further strengthening our corporate brand, a new multi-media campaign was
launched in the Netherlands during the third quarter, adopting the theme 'There
is only one like you' ('Er is maar een Nederlander zoals jij'). The campaign
features a variety of unique individuals with their own circumstances, wishes
and goals. Nationale-Nederlanden recognises this uniqueness of their customers,
and knows that every person deserves personal services that suit their
individual lives. After a period of two weeks the first two products were added
to the campaign; Managed investments ('Beheerd Beleggen') and Your future income
('Jouw inkomen later'). These new products exemplify our goal of offering
services that fit each individual customer's needs.
It is our ambition to make a positive impact on society through integrating
sustainability aspects into our core activities. NN Group improved its position
in the ranking of the Dow Jones Sustainability Index (DJSI). NN Group scored 77
points (out of 100), an increase of 9 points compared with 2015 mainly driven by
improved scores on Tax strategy, Customer Relationship Management and Financial
Inclusion. The average for the insurance sector is 50 points. The research
executed by RobecoSAM helps us gain insight on areas for further improvement.
In the Netherlands, Nationale-Nederlanden signed up to a 'green deal' to promote
car sharing, and will modify its policy terms and conditions to extend insurance
coverage for car sharing initiatives. Green deals are partnerships between the
Dutch government and third parties to achieve sustainability targets. The aim is
to achieve 100,000 shareable cars in the Netherlands by the end of 2018.
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).
Investor conference call and webcast
Lard Friese and Delfin Rueda will host an analyst and investor conference call
to discuss the 3Q16 results at 09.30 am CET on Thursday 17 November 2016.
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
Lard Friese and Delfin Rueda will host a press call to discuss the 3Q16 results,
which will be held at 11.30 am CET on Thursday 17 November 2016. Journalists can
join the press call at +31 (0)20 531 5863.
Financial calendar
* Publication 4Q16 results: 16 * Publication 2Q17 results: 17
February 2017 August 2017
* Publication 1Q17 results: 18 May * Publication 3Q17 results: 16
2017 November 2017
* Annual General Meeting: 1 June
2017
Contact information
---------------------------------- ----------------------------------
Press enquiries Investor enquiries
Saskia Kranendonk Investor Relations
+31 62 568 3835 +31 88 663 5464
saskia.kranendonk(at)nn-group.com investor.relations(at)nn-group.com
---------------------------------- ----------------------------------
Additional information on www.nn-group.com
* NN Group 3Q16 Financial Supplement, NN Group 3Q16 Analyst Presentation and
NN Group 3Q16 Condensed consolidated interim financial information
* 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
accounts for the period ended 30 September 2016.
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) changes in the
availability of, and costs associated with, sources of liquidity as well as
conditions in the credit markets generally, (5) the frequency and severity of
insured loss events, (6) changes affecting mortality and morbidity levels and
trends, (7) changes affecting persistency levels, (8) changes affecting interest
rate levels, (9) changes affecting currency exchange rates, (10) changes in
investor, customer and policyholder behaviour, (11) changes in general
competitive factors, (12) changes in laws and regulations, (13) changes in the
policies of governments and/or regulatory authorities, (14) conclusions with
regard to accounting assumptions and methodologies, (15) changes in ownership
that could affect the future availability to us of net operating loss, net
capital and built-in loss carry forwards, (16) changes in credit and financial
strength ratings, (17) NN Group's ability to achieve projected operational
synergies and (18) the other risks and uncertainties detailed in the Risk
Factors section contained in recent public disclosures made by 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_3Q2016:
http://hugin.info/160538/R/2057585/770989.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: NN Group NV via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 17.11.2016 - 07:01 Uhr
Sprache: Deutsch
News-ID 507648
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