NN Group reports 2Q17 results
(Thomson Reuters ONE) -
Strong operating and commercial performance of the combined group; Solvency II
ratio at 196%
* Operating result ongoing business was up from EUR 321 million in 2Q16 to EUR
404 million, of which Delta Lloyd contributed EUR 49 million. The operating
result excluding Delta Lloyd increased by EUR 33 million
* Net result was down 28.2% from 2Q16 to EUR 240 million, of which Delta Lloyd
contributed EUR 21 million. The net result excluding Delta Lloyd decreased
by EUR 115 million, reflecting a provision related to ING Australia Holdings
partly compensated by higher non-operating items
* Strong commercial momentum: APE was up 43.1% from 2Q16 at constant
currencies to EUR 400 million, of which Delta Lloyd contributed EUR 66
million. VNB for 6M17 was up 69.4% to EUR 170 million driven by Japan Life
and Insurance Europe
* Solvency II ratio of NN Group was 196% reflecting the acquisition of Delta
Lloyd, positive market impacts, operating return and the deduction of the
2017 interim dividend
* Holding company cash capital was EUR 1,731 million; including EUR 820
million dividends received from subsidiaries and EUR 500 million capital
injection into Delta Lloyd Life
* Interim dividend 2017 of EUR 0.62 per ordinary share or approximately EUR
209 million
Statement of Lard Friese, CEO
'Today we are reporting our first fully consolidated set of quarterly results
for NN Group and Delta Lloyd, and I am pleased with the strong overall
performance of the combined group in the second quarter of 2017. We have seen a
healthy contribution from Delta Lloyd, and almost all our segments reported
improved results compared with a year earlier, most notably in Japan Life and
Insurance Europe. The results of our Netherlands Non-life business were impacted
this quarter by a EUR 40 million strengthening in the Property & Casualty
insurance liabilities. We continued to deliver cost efficiencies across our
businesses, leading to a further reduction of our cost base. The Solvency II
ratio was 196%, providing a solid foundation for the combined group going
forward. The commercial momentum we saw earlier has been sustained, as both
sales and the value of our new business increased significantly, and NN
Investment Partners again attracted robust Third Party net inflows.
We have made steady progress in our first quarter together with Delta Lloyd, and
a start has been made to integrate our businesses, with the aim of taking the
combined group into the next phase of our journey. Integrating two organisations
and business cultures requires effort and focus. Throughout this process, our
employees remain committed to deliver an excellent customer service, further
innovate our businesses and to contribute to the societies in which we operate.
We are excited to start this new chapter as a combined group, reporting a first
strong set of results. While we bring together the best of our businesses and
cultures to integrate NN and Delta Lloyd in the Netherlands and Belgium, our
focus remains on disciplined capital management, a strong balance sheet, and on
driving ahead with full energy to further improve the customer experience across
our 18 markets.'
NN Group key figures
In EUR million 2Q17 2Q16 Change 6M17 6M16 Change
---------------------------------------------------------------------------
Operating result ongoing business(1)) 404 321 25.8% 810 626 29.4%
Net result 240 335 - 28.2% 676 605 11.6%
Net operating ROE(1)9)22)) 10.7% 8.6% 10.9% 8.6%
2Q17 1Q17 Change 6M17 6M16 Change
Solvency II ratio(2)) 196% 238% 196% 252%
Note: All footnotes are included on page 31
Quarterly Business Update
NN Group's robust financial position provides a solid foundation for executing
the company's 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.
Capturing growth
With the acquisition of Delta Lloyd, NN's proposition in the Dutch pension
market was further strengthened, especially in the area of Defined Contribution
(DC) pensions. Delta Lloyd brings significant additional DC business to the
existing NN portfolio, leading to a combined #1 market position in DC. The first
half of 2017 also showed a steady inflow of new contracts at AZL, NN Life's
pension administrator, for a number of industry pension funds. These new
contracts will significantly increase the total number of participants from
almost 900,000 to 1,250,000 as from 1 January 2018.
Our general pension fund 'De Nationale APF' signed a contract with a new client,
McCain. 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.
In the second quarter of 2017, the sale of protection products of Insurance
Europe grew by 47.8% across the region compared with the same quarter in 2016.
Several of our business units in Europe developed health products. For example,
our Spanish business expanded the 'For You' proposition to tied agents. This
product provides specific coverage for the diagnoses of breast cancer and offers
specific services such as a second medical opinion, homecare and childcare
services. A campaign raising awareness for cancer prevention, supported the
marketing of the product.
NN Hellas in Greece introduced a new health insurance programme, 'NN Orange
Health'. This is specifically designed to meet the needs of young families, as
it covers up to six insured people in the same policy. NN Orange Health provides
access to more than 40 private hospitals in Greece at an affordable price. It
includes coverage abroad, medical expenses in the event of an accident, surgical
allowance, and urgent transportation within Greece.
The NN Accident Insurance packages of NN Hungary have proven to be successful,
with more than 10,000 policies sold to date, since its launch in the second
quarter of 2016. Offered online, the packages provide specific coverage in the
event of an accident, including coverage for daily hospital costs and loss of
income, plus a rider covering the costs of physiotherapy, assistance service and
help at home. The demand for this product shows that customers are becoming more
conscious about preparing for the loss of income due to an accident. In addition
to this, new riders were added to Motiva, NN Hungary's easy-to-understand
pension insurance product.
NN Investment Partners saw positive net flows for Third Party assets for the
fourth consecutive quarter amounting to EUR 3.1 billion in the second quarter.
And our banking businesses - NN Bank and Delta Lloyd Bank - grew their combined
mortgage portfolio by EUR 0.5 billion to EUR 17.4 billion in the second quarter
of 2017. During that same period, their customer savings grew by EUR 0.2 billion
to EUR 13.7 billion.
Multi-access distribution
NN Group serves its customers through multiple channels, comprising tied agents,
bancassurance partners, brokers and direct channels.
Following the acquisition of Delta Lloyd, the distribution capabilities of NN
Group have been expanded with the inclusion of its direct channel OHRA and bank
distribution channel ABN AMRO Insurance in the Netherlands. ABN AMRO Insurance
provides ABN AMRO customers with life and non-life insurance product and service
solutions in the Retail and SME segments. With over a million customers serviced
through call centres, internet and branches, ABN AMRO Insurance is an attractive
bancassurance platform in the Netherlands. In Belgium, the distribution scope
has been broadened with the brokers and direct channels of Delta Lloyd Life
Belgium.
In the second quarter of 2017, our businesses in Europe added new banks to the
bancassurance platform, through which life and non-life products are offered. NN
Bulgaria added three new banks, and in the Czech Republic the cooperation with
Moneta Money Bank is showing positive results with a significant increase in
sales of life insurance policies and pensions. Nationale-Nederlanden in Poland
started offering health insurance packages to customers through its strategic
partnership with ING Bank Slaski, using their online banking channel.
NN Hayat ve Emeklilik launched a new partnership with Abank, a player in the
Turkish and international market. This partnership enables customers to have
access to NN Hayat ve Emeklilik's product portfolio through Abank's 53 branches
across Turkey, over the next 5 years.
Bancassurance COLI sales for Japan Life increased by 26.4% at constant
currencies, compared with the second quarter of 2016, despite increasing
competition. Higher sales were driven by the higher bank activation and the
expansion of the bank distribution network to 68 partners as of end of June
2017, compared with 57 partners a year earlier. Furthermore, Sumitomo Life
started offering NN Life Japan's COLI products from the beginning of April
2017, contributing over 10% of Japan Life's total sales this quarter.
Effective and efficient operations
NN Group is committed to making its processes as efficient and effective as
possible. The businesses in the Netherlands are working on the integration
process with Delta Lloyd, but at the same time continue to implement efficiency
initiatives. For example, NN Life is separating its pension business into
Pension Services and Pensions New Business to further improve the customer
experience for both segments.
Furthermore, NN Life has successfully migrated around 140,000 policies to a new
platform. This system creates a flexible cost structure and enables our
customers and tied agents to see their product details online.
Innovation
NN's innovation lab, Sparklab, in Hungary is developing several health
initiatives, including a mobile application connected to a smart device to help
those living with diabetes. The aim of the project is to use technology to help
people to take care of their health and make it easier to follow their health
status and results. Sparklab in the Netherlands launched 'Bundelz', the first
prepaid car insurance. It allows customers to buy a 1,000-kilometre bundle of
car insurance, instead of paying a monthly premium. This user based service is
ideal for drivers who only drive occasionally, or short distances. The Dutch
Cyber Collective, an NN initiative supporting SMEs to reduce cybercrime,
launched the 'Cyberwacht', an emergency service for hacked companies. The
Cyberwacht limits damage, investigates causes and removes malicious software.
We offer our agents and employees digital tools to simplify and improve the
experience of our customers. For example, we are deploying new digital
illustration tools for our agents to help customers select the right products
and services. Paperless application processes, including electronic underwriting
and biometric signatures, enable our customers to access our products and
services effortlessly.
Movir, which offers individual disability insurance to self-employed workers in
the Netherlands, joined forces with Totem Open Health, an innovative start-up in
the mobile health sector, aimed at detecting and addressing people's high stress
levels. Based on data from ECG sensors using Totem, a person's stress level can
be monitored, which, if needed, prompts the user to seek timely help in order to
prevent potential burnout.
Other events
As part of our commitment to society, NN Group endorsed the final
recommendations of the Financial Stability Board (FSB) Task Force on Climate-
related Financial Disclosures. A consistent disclosure framework helps us as an
investor and insurer, to more effectively measure the financial implications of
climate change. To demonstrate that climate change warrants specific attention,
NN Group has published the carbon footprint of a large part of its proprietary
assets, and joined the Institutional Investors Group on Climate Change (IIGCC).
These steps help us to engage with investee companies to encourage them to
reduce greenhouse gas emissions and support the Paris Agreement.
OHRA, Delta Lloyd's direct distribution channel for healthcare and non-life
protection products won a SAN Accent Award for its health insurance campaign in
the Netherlands.
NN Group Profile
NN Group is an international insurance and asset management company, active in
18 countries, with a strong presence in a number of European countries and
Japan. With all our employees the Group offers retirement services, pensions,
insurance, investments and banking to approximately 17 million customers. NN
Group's main brands are Nationale-Nederlanden, NN, Delta Lloyd, NN Investment
Partners, ABN AMRO Insurance, Movir, AZL, BeFrank and OHRA. 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 2Q17 results at 10.00 am CET on Thursday 17 August 2017. 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 2Q17 results,
which will be held at 12.00 pm CET on Thursday 17 August 2017. Journalists can
join the press call at +31 (0)20 531 5863.
Financial calendar
* Publication 3Q17 results: 16 * Publication 4Q17 results: 15
November 2017 February 2018
* Capital Markets Day: 30 November * Publication 1Q18 results: 17 May
2017 2018
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 2Q17 Financial Supplement, NN Group 2Q17 Analyst Presentation
* NN Group 30 June 2017 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 of 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 2017.
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 or European Union
countries leaving the European Union , (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 and the interpretation and application thereof,
(13) changes in the policies and actions 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 NN Group 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, (18) catastrophes
and terrorist-related events, (19) adverse developments in legal and other
proceedings and (20) the other risks and uncertainties 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 2Q17:
http://hugin.info/160538/R/2127692/812544.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: 17.08.2017 - 07:00 Uhr
Sprache: Deutsch
News-ID 556842
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