19 Nov 2015 - 06:55 CET
NN Group Capital Markets Day: ‘Driving performance forward’
- Significant progress on execution of strategy and delivery on financial targets since IPO in 2014
- New target administrative expense base in the Netherlands of EUR 700 million by end 2018, reducing administrative expenses by approximately 15%
- Solvency II ratio of 214% at 30 September 2015, based on the Standard Formula and NN Group’s current interpretation of Solvency II regulations
- Continue to drive customer satisfaction and shareholder value
Today, Lard Friese CEO of NN Group and other members of the Management Board of NN Group will address the analyst and investment community at a Capital Markets Day in The Hague, the Netherlands. The theme of NN Group’s Capital Markets Day is 'Driving performance forward'.
Lard Friese, CEO NN Group: "This is the first Capital Markets Day for NN Group as a listed company and I am pleased that we have made significant progress on the execution of our strategy and delivery on the financial targets set at the IPO. Our investment proposition remains focused on generating capital and improving earnings through the transformation in the Netherlands and profitable growth in our International businesses and Asset Management. We aim to further improve efficiency in the Netherlands by means of a further reduction of administrative expenses to reach a target expense base of EUR 700 million by the end of 2018.
Our capital position has remained strong, even after returning a total of EUR 849 million to shareholders since the IPO. We are pleased to provide an update on our Solvency II position today with a strong solvency ratio based on the Standard Formula. We continue our discussions with the Dutch regulator on the approval of our Partial Internal Model.
We will continue in the same direction and with the same commitment to deliver on our medium-term and long-term strategic objectives, and at the same time further drive customer satisfaction and shareholder value."
Since the IPO, significant progress has been made in delivering on the medium-term financial targets. These targets include generating free cash in a range around the net operating result of the ongoing business, realising annual earnings growth of 5-7% on average, and increasing net operating ROE. The original target to reduce administrative expenses in the Netherlands by EUR 200 million, has been realised ahead of schedule.
NN Group will continue its focus on efficiency in all segments, especially in the Netherlands. Between now and the end of 2018, NN Group intends to reduce administrative expenses in Netherlands Life, Netherlands Non-life and Corporate/Holding by approximately 15%, resulting in a new target administrative expense base of EUR 700 million.
The group’s comprehensive capital framework is unchanged. As announced on 4 November 2015, NN Group's IGD Solvency I ratio was 322% at 30 September 2015. NN Group and its operating units are strongly capitalised under Solvency II, with a Solvency II ratio based on the Standard Formula of 214% at 30 September 2015, compared with the estimate of a range around 200% at 31 December 2014. Uncertainties remain on some interpretations of Solvency II regulations.
Going forward, all segments remain committed to delivering on their medium-term targets set at the time of the IPO. And at the same time, the business will continue to enhance customer experience, supported by an increased focus on innovation and further digitalisation.
NN Group is well placed in its home market with leading positions in Life and Non-life. Netherlands Life is well positioned to grow in the pension market, while the individual life closed book is being managed to release capital. In Netherlands Non-life, management actions are being taken to improve underwriting performance. NN Bank facilitates long-term savings needs in the Netherlands and will continue to grow, focusing on building scale and improving profitability.
The businesses in Europe aim to grow profitably through disciplined capital allocation and by leveraging their significant distribution platform. Japan Life continues to focus on driving value through product innovation and expanding its distribution.
Asset Management continues to invest in its strategy of attracting third party assets through its highly scalable platform and by focusing on its key capabilities.
All presentations at the Capital Markets Day are available online and can be followed live via webcast on www.nn-group.com.
NN Group profileNN 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).
Important legal information
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 purchase, any securities in the United States or any other jurisdiction. The securities of NN Group have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.