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MarketScreener Homepage  >  Equities  >  Euronext Amsterdam  >  NN Group    NN   NL0010773842

NN GROUP (NN)
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NN : reports 1Q18 results

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05/17/2018 | 07:01am CEST


Solvency II ratio at 213%, integration progressing well

  * Operating result of the ongoing business decreased to EUR 313 million from
    EUR 406 million in 1Q17, mainly due to a EUR 89 million total impact of the
    storm in January
  * Net result of EUR 399 million, down 8.4% from 1Q17, reflecting the lower
    operating result and higher special items, partly compensated by higher non-
    operating items
  * Further cost reductions of EUR 42 million in 1Q18; total cost reductions
    achieved to date of EUR 175 million; cost reduction guidance raised to EUR
    400 million by 2020 of which at least half by the end of 2018
  * Total new sales (APE) of EUR 547 million, down 7.8% from 1Q17 at constant
    currencies
  * Solvency II ratio of 213% up from 199% at the end of 4Q17, driven by a
    combination of positive market impacts and operating capital generation
  * Holding company cash capital at EUR 1,631 million, reflecting dividends
    received mainly from the Dutch units
Statement of Lard Friese, CEO

'In  the first  quarter of  2018, we have  made further  progress in integrating
Delta Lloyd, with the completion of the legal mergers of the banking activities,
asset  management companies, and the life  businesses in Belgium. The rebranding
of  products and services  is well on  its way and  we expect this process to be
largely finalised by the end of the year. Building on our strong track record of
cost  discipline,  we  further  improved  efficiency with EUR 42 million of cost
savings  this quarter in the business units  in the scope of the integration. We
have  now achieved  total cost  reductions of  EUR 175 million compared with the
full-year  2016 administrative expense  base representing  half of  our targeted
cost  reduction of EUR 350 million by 2020, well  ahead of the earlier envisaged
schedule.  Given  the  strong  progress  so  far,  we announce today that we are
raising  the cost reduction  guidance to EUR 400 million  by the end of 2020. We
expect to achieve at least half of these savings by the end of this year.

The  current quarter operating result decreased from last year mainly due to the
impact of the severe storm in January. As it is our aim to support our customers
in  times of need, we were able to  settle most of the thousands of storm claims
within  one month. We want to provide relevant products for our customers, while
writing profitable new business, focusing on value rather than volume. New sales
at  Netherlands Life were down in the first quarter of 2018 compared with a year
ago,  reflecting a  lower volume  of group  pension contracts  that were  up for
renewal,  while new sales  in Japan remained  broadly stable - despite increased
local competition.

Our  balance  sheet  remains  strong,  in  line  with  our  disciplined  capital
management  approach.  The  Solvency  II  ratio  increased  to 213% and the cash
capital position to EUR 1,631 million at the end of the first quarter.

Our  businesses  are  committed  to  drive  value  and achieve their medium-term
targets  by further  improving performance.  Following the  acquisition of Delta
Lloyd  last  year,  we  continue  to  deliver on the transaction by successfully
extracting the envisaged synergies and combining the strengths of our businesses
and  cultures. Throughout this process we will continue to be focused on further
improving  our services  through innovative  customer solutions  and value added
products.'



NN Group key figures

 In EUR million                          1Q18   1Q17   Change


--------------------------------------------------------------
 Operating result ongoing business(1))    313    406   -22.9%

 Net result                               399    435    -8.4%

                                         1Q18   4Q17     1Q17

 Solvency II ratio(2))                   213%   199%     238%




Strategy and priorities

Our  businesses are built on  a strong foundation of  purpose, brand, values and
ambition which, combined with a focus on our strategic priorities, enables us to
consistently  create long-term value. This is how  we deliver on our ambition to
be a respected company that truly matters in the lives of our stakeholders.

Netherlands

The  integration  of  NN  and  Delta  Lloyd  is  well  on  track. Throughout the
integration  process, the business continues to  focus on improving the customer
experience,  resulting in increased Net Promoter  Scores (NPS) and broker scores
in  the first quarter compared with a year ago. Nationale-Nederlanden's advisors
satisfaction  level  improved  in  the  first  quarter, whilst Delta Lloyd's and
BeFrank's  advisor satisfaction  level remained  at a  high level.  The combined
market  share in Life Pensions increased slightly  in the quarter, mainly due to
new business in the DC market.

NN  Group  continues  to  make  its  processes more efficient and effective. For
example, the Non-life business and Voogd & Voogd have entered into a partnership
for  non-life insurance products for retail customers which will be effective as
of  1 July 2018. The partnership will support  further cost savings and customer
service improvements.

NN  is transitioning to an agile way of working to be able to respond faster and
better  to the rapidly  changing customers' needs  and expectations. NN and OHRA
are  recognised for their effective online  customer journey and prompt handling
of  complaints.  OHRA  scores  highest  among  all  insurers  on  the Complaints
Management  and Fraud Management  themes for the  period 2015-2018, according to
certifying  organisation 'Keurmerk Klantgericht  Verzekeren'. OHRA also received
an  Integral Online Service Award from  customer journey and business specialist
WUA.

International Insurance

International  Insurance continues to grow its businesses, by expanding sales of
protection   products   through   diverse  distribution  channels.  In  February
Nationale-Nederlanden  in Poland launched its first travel insurance product. In
Hungary,  a product for families  with children was launched.  This product is a
regular  premium unit-linked insurance, while also offering protection cover for
children.

The  integration of Delta  Lloyd and NN  Belgium is progressing  well. The legal
merger  and the rebranding were completed  on 30 March 2018, and a commercial TV
and  online  campaign  to  promote  the  NN  brand  has  been launched. Customer
experience  improvements continue with the introduction  of a new online medical
acceptance  tool. The first steps  to integrate the teams  and systems have been
initiated  in  order  to  prepare  for  the  move  to  one building that will be
completed by the end of October 2018.

NN  Life Japan  announced a  partnership with  Freee, a leading cloud accounting
software  company,  to  provide  users  of  the  software  with personalised and
innovative insurance products, including protection and financial solutions.

Sparklabs are our out-of-office environments used to foster innovative ideas and
help  infuse  more  innovative  thinking  into  NN. The most recent Sparklab was
launched  in Spain. The partner of the NN Hayat ve Emeklilik Sparklab in Turkey,
Hesapkurdu,  introduced an online straight-through loan  process with one of the
biggest  banks in  Turkey, Is  Bankasi, in  April 2018. This  is the  first full
integration  between an aggregator and a bank in the Turkish market, making NN's
Life insurance propositions more widely available. Sparklab in Poland became the
official  partner of the #Warsaw booster'18  programme, dedicated to fintech and
insuretech  startups. This  partnership provides  an opportunity  for technology
startups to accelerate their business and cooperate with experienced mentors and
business partners.

The international businesses are also introducing the agile way of working to be
able to respond faster and better to the rapidly changing customer needs.

For  the second year in a row,  NN Czech Republic's life insurance products were
ranked  as top-of-the-market by the renowned independent financial online portal
Finparada.cz.  In the same ranking, NN Pensions took third place in the category
supplementary   pension  savings.  NN  Czech  Republic  was  awarded  the  Czech
Superbrands title for the third time in a row; the award is based on the opinion
of both experts and customers.





Asset Management

NN Investment Partners (NN IP) recently won its first export credit agency (ECA)
loan mandate in Germany. In addition, NN IP launched the NN (L) Emerging Markets
Debt  Short Duration Hard Currency Fund.  Building on NN IP's long and extensive
experience  in investing in emerging markets debt (EMD), the fund is designed to
offer investors stable, long-term income with low credit risk.

The  legal merger of Delta Lloyd Asset Management (DLAM) and NN IP was completed
in  January  2018, and  the  integration  of  the  various teams and operational
activities in the Netherlands is ahead of schedule.

Other events

NN  Group has taken a  next step in its  responsible investment policy by taking
the  decision to exclude tobacco from  all its investments. Currently tobacco is
already excluded from the sustainable and impact products which NN IP manages on
behalf of its clients. The decision takes into account concerns regarding public
health, as well as the related economic and societal impact.

In  March, NN Group participated in Money Week, an initiative of the Dutch Money
Wise  platform. By giving guest lectures  about insurance and banking at primary
schools  in the Netherlands, we aim to teach children about money and risks at a
young  age, and in a fun and interactive way. This initiative reached a total of
around  7,500 children this year. NN Czech Republic joined Global Money Week for
the  first time with a presentation at the GMW conference sponsored by the Czech
government  and  the  Czech  National  Bank.  The  presentation  focused  on the
importance  of financial education and economic  empowerment of young people for
the  wellbeing of society. These initiatives are  part of NN Future Matters, our
community  investment  programme,  which  aims  to  empower people to grow their
(financial)  skills and increase their future opportunities in the markets where
NN operates.

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).

Analyst call

Lard  Friese and Delfin Rueda will host  an analyst and investor conference call
to  discuss the 1Q18 results at 10.30 am CET on Thursday 17 May 2018. 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

Lard Friese and Delfin Rueda will host a press call to discuss the 1Q18 results,
which will be held at 07.45 am CET on Thursday17 May 2018. Journalists can join
the press call at +31 20 531 5863    (NL).

Contact information

----------------------------------   ----------------------------------
  Press enquiries                      Investor enquiries

  Saskia Kranendonk                    Investor Relations
  +31 62 568 3835                      +31 88 663 5464
  saskia.kranendonk@nn-group.com       investor.relations@nn-group.com
----------------------------------   ----------------------------------

Additional information on www.nn-group.com

  * NN Group 1Q18 Financial Supplement, NN Group 1Q18 Analyst Presentation
  * NN Group31 March 2018 Condensed consolidated interim accounts
  * Photos of NN Group executives, buildings and events are available for
    download at Flickr
Important legal information

Elements of this press release contain or may contain information about NN Group
N.V. within the meaning of Article 7(1) to (4) of EU Regulation No 596/ 2014
(Market Abuse Regulation).

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 31 March 2018.

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 1Q18: 
http://hugin.info/160538/R/2193451/849577.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

 
  

© InPublic, source European Press Releases

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