Skip to main content

NN Group reports 3Q17 results

16 November 2017 | NN Group reports 3Q17 results

Strong performance of the combined group; Solvency II ratio at 204%

  • Operating result ongoing business increased to EUR 431 million from EUR 319 million in 3Q16, driven by improved results at most segments, the contribution of Delta Lloyd of EUR 51 million and EUR 32 million non-recurring benefits in the segment Other, partly offset by lower results at Netherlands Non-life
  • Net result of EUR 734 million versus EUR 436 million in 3Q16, reflecting the improved operating result and higher capital gains
  • Ongoing expense reduction at Netherlands Life, Netherlands Non-life, Asset Management, the segment Other and Belgium, of EUR 86 million in the first nine months of 2017
  • Solvency II ratio of NN Group increased to 204% from 196% at 2Q17, reflecting operating return and positive market impacts
  • Holding company cash capital increased to EUR 1,789 million reflecting EUR 332 million of dividends received from subsidiaries

Statement of Lard Friese, CEO

‘We are pleased to report another strong set of results for NN Group for the third quarter of 2017. This is the second quarter in which the results of Delta Lloyd have been included in our company’s overall performance, after the acquisition of the company in April this year. Apart from the Non-life business, all our businesses performed well. Japan Life and Insurance Europe in particular reported a healthy increase in earnings and continue to achieve strong growth in sales.

At the same time, we continue to strive for efficiency, as reflected in further cost savings of EUR 64 million in the quarter. Our balance sheet remains robust, with a Solvency II ratio of 204% and cash capital position of EUR 1.8 billion. We will redeem EUR 575 million of senior notes which mature tomorrow. Together with the transaction we concluded with Fonds NutsOHRA in April, we will have reduced our financial leverage by approximately EUR 1 billion.

As a financial company with a significant economic footprint, we want to contribute to society; among other things by further integrating ethical, social and environmental components into our core strategy. As of September, NN Group is included in the Dow Jones Sustainability Indices, for both World and Europe. This means NN Group now ranks among the top 10% of the insurance industry group with regard to its sustainability performance.

The integration of the Delta Lloyd and NN operations in the Netherlands and Belgium is progressing well. In the Netherlands, we reached agreements with the trade unions and the Works Councils on the Reorganisation Framework and the guiding principles for integration, that facilitate further implementation of the integration plans. Another important step forward as a combined group was the start of the brand transformation from Delta Lloyd to NN. Furthermore, to optimally serve our customers, new product offers are being developed by the combined front offices. We also reached out to intermediaries on multiple occasions to personally share and explain the rationale and the benefits of the combined group. With the integration process well on its way, we will continue to shape the future strategy of the combined group, and we look forward to sharing the progress we are making on these fronts at our Capital Markets Dayon 30 November.’

(download the full Press Release)

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 that meet customers’ lifetime needs.

Transparent products and services

This quarter, two new innovative home insurance products were launched. Nationale-Nederlanden Spain launched ‘Mihogar Seguro’. This is a flexible product offering modular coverage including the repair of electrical appliances, services related to travel assistance and services related to pets (for example telephone counselling or access to veterinary centres). In total, more than 60% of these policies sold include such additional coverage. The Non-life business in the Netherlands launched a flexible home insurance product, in which the customer can choose specific insurance coverage in a more granular way to fit their personal needs.

Since the third quarter, NN Bank in the Netherlands has been offering mortgage solutions for the self-employed. These mortgages are available for entrepreneurs who have been self-employed for over a year and less than three years.

In September, the liability insurance products of OHRA and ABN AMRO Insurance, as well as the legal insurance products of Nationale-Nederlanden and ABN AMRO Insurance were awarded a five-star rating by MoneyView, which collects information about financial products and makes them transparent and comparable.

Capturing growth

NN’s leading position in the area of Defined Contribution (DC) in the Dutch pension market was further strengthened by contract renewals in a broad range of sectors, and new sales in the SME and Corporate markets, an example is SGS, a multinational with over 90,000 employees worldwide, which chose NN’s insured DC-product. The general pension fund ‘De Nationale APF’ signed contracts with two new clients, Unisys and AFM, resulting in a total of approximately EUR 1 billion in assets under management as of January 2018.

The banking business – NN Bank and Delta Lloyd Bank – continued to grow their mortgage business in the third quarter adding EUR 0.4 billion to reach a combined mortgage portfolio of EUR 17.8 billion. To address its ongoing funding needs and to further diversify its sources of funding, NN Bank successfully issued a EUR 500 million conditional pass-through covered bond in October under its covered bond programme. The bonds were placed with a broad range of institutional investors and will help NN Bank to further grow its business.

In the third quarter of 2017, the sale of protection products at Insurance Europe grew by 47.9% across the region compared with the same quarter in 2016.

In Turkey, a new law came into effect on 1 January 2017, under which all employees under the age of 45 will been rolled in a new compulsory pension scheme, managed by a pension company to be selected by their employers. NN Hayat ve Emeklilik successfully introduced a pension product to meet this new demand, capturing around 7% market share. To support the product’s introduction, an online peer-to-peer referral model was developed by our innovation lab ‘Sparklab’ in Turkey to acquire new pension customers through third parties such as accountants, HR companies and payroll companies.

Multi-access distribution

Nationale-Nederlanden in the Netherlands took further steps in the omni-channel approach. Online chat and co-browse technology has been implemented in our digital environment, creating ease of use for our customers and intermediaries.

NN Group serves its customers through multiple channels, comprising tied agents, bancassurance partners, brokers and direct channels. Bancassurance COLI sales for Japan Life increased by 30% at constant currencies, compared with the third quarter of 2016, despite increasing competition. Higher bank activation and the expansion of the bank distribution network to 73 partners as of the end of September 2017, compared with 61 partners a year earlier, were key drivers for the increase in sales. Furthermore, Sumitomo Life started offering NN Life Japan’s COLI products from the beginning of April 2017, contributing more than 10% of Japan Life’s total sales this quarter.

NN Hellas in Greece renewed its bancassurance agreement with Piraeus Bank for the coming 10 years, with the possibility of a further five-year extension. Piraeus Bank, the leading bank in Greece, will continue to offer NN Hellas’ life and health products to its customers.

In September 2017 Nationale-Nederlanden Poland introduced a new Payment Protection Insurance product specifically geared to both retail and entrepreneur customers of ING Bank Ślaski. The product offered to retail customers consists of both life and non-life insurance. The product for small businesses, ‘Safe business’, provides loan payment protection in the event that the owner is incapacitated for work.

In November NN Hayat ve Emeklilik in Turkey entered into a strategic partnership with, the leading online loan aggregator for mortgages and consumer loans in the Turkish market.

Effective and efficient operations

NN Group is committed to making its processes as efficient and effective as possible. The Dutch life business has started an automation project, called `Robo for Life´. Currently ,seven robotic systems have been implemented in four different streams; Pay-outs, Start Pension & Decease, Divorce and Value Transfer. This has resulted in a decrease in operational costs and an improvement in customerservice levels.

NN in Belgium launched Medic@Home, a medical acceptance process for mortgage-linked Term Lifeinsurance, which allows customers to complete the medical questionnaire entirely online, on any device (laptop, smartphone, tablet), guaranteeing a smooth service. So far, more than 80% of customers have chosen to file their medical acceptance online, using the NN Portal. NN is analysing how Medic@Home can be further rolled out for other life protection products with banking partners and in the broker channel in other markets.

In Hungary NN introduced the ‘Green Lane’ project which automates and digitises the underwriting and issuance of insurance policies. This includes real-time straight-through processing and enables multichannel access for customers. This is a significant step forward from the current 11 day issuance process, saves costs and allows quicker payment of commissions.


NN International Insurance has developed a tool to support sales agents in their daily activities, the Smart Agent Mobile App, which is currently being piloted in Greece. The app supports agents by providing them with up-to-date information on customers and prospects, an overview of open tasks, and their personal performance. The app is integrated with NN systems and phone functionalities allowing agents to easily connect with customers and prospects and to deliver better customer experience.

The Non-life business in the Netherlands recently introduced a new car insurance: ‘Roxo’, developed together with Independer, a Dutch comparison site for financial products, and which uses machine learning to calculate risk premiums.


ESG & Sustainability remains an area of focus for NN Investment Partners (NN IP) and has been performing well across the different asset classes. NNIP’s Sustainable & Impact Equity funds, the Green Bonds & Sustainable Credit offering as well as the Sustainable Multi-Assetsolutions have seen overall positive net flows.

Furthermore, NNIP recently developed an innovative approach for assessing the Sustainable Development Goals (SDGs) exposure of companies and for investing according to the SDGs. The United Nations SDGs offer a solid path to value creation for society and shareholders: investing in a better world while achieving healthy financial returns. This new approach helps NNIP and its clients contribute to this as well.

(download the full Press release)

Investor conference call and webcast

Lard Friese and Delfin Rueda will host an analyst and investor conference call to discuss the 3Q17 results at 10.00 am CET on Thursday 16 November 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

Press call
Lard Friese and Delfin Rueda will host a press call to discuss the 3Q17 results, which will be held at 07.30 am CET on Thursday 16 November 2017. Journalists can join the press call at +31 (0)20 531 5863.

Financial calendar

  • Capital Markets Day: 30 November 2017
  • Publication 4Q17 results: 15 February 2018
  • Publication 1Q18 results: 17 May 2018
  • Publication 2Q18 results: 16 August 2018

Additional information

  • Photos of NN Group executives, buildings and events are available for download at Flickr
  • NN Group is an international insurance and asset management company, active in 20 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).
  • 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 30 September 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.