NN Group, 3Q2019: net result of EUR 515 million

14 November 2019 — press.release
For the third quarter of 2019, NN Group net result amounted EUR 515 million, showing a decrease of 34.6% year-on-year, reflecting lower non-operating items.

NN Group third quarter figures (vs. 3Q2018)

  • Operating results: EUR 453 million (-2.2%), of which:
    • Netherlands Life: EUR 204 million (-13.6%)
    • Netherlands Non-life: EUR 55 million (+19.9%)
    • Insurance Europe: EUR 74 million (+13.1%)
    • Japan Life: EUR 50 million (+12.2%)
    • Asset Management: EUR 43 million (+1.8%)
    • Banking: EUR 38 million (+12.5%)
  • Gross premium income: EUR 3,765 million (+27.7%)
  • New sales life insurance (APE): EUR 290 million (-11.8%)
  • Cost/income ratio: 28.3% (-0.2 pp.)
  • Combined ratio (Netherlands): 94.2% (-2.9 pp.)
  • Solvency II ratio: 217% (+7 pp.)
  • Net result: EUR 515 million (-34.6%)

NN Group's operating result of the third quarter of 2019 was EUR 453 million (3Q2018: EUR 463 million). The 2.2% decrease reflects lower private equity and special dividends at Netherlands Life and a lower operating result of the reinsurance business. This was largely offset by improved operating results at Netherlands Non-life, Insurance Europe, Japan Life and Banking.

Total new sales (APE) at NN Group were EUR 290 million, down 15.8% from the third quarter of 2018 on a constant currency basis. At Japan Life, new sales were EUR 35 million, down from EUR 164 million in the same quarter last year, due to lower sales of COLI products following the revised tax regulations. New sales at Netherlands Life were EUR 122 million, up from EUR 36 million in the third quarter of 2018, driven by a higher volume of group pension contracts. New sales at Insurance Europe were up 3.1% on a constant currency basis, largely driven by higher protection and pension sales and the contribution from the acquired Czech and Slovak businesses.

The administrative expenses of the business units in the scope of the cost reduction target decreased by EUR 17 million, bringing the administrative expense base down to EUR 1,646 million at the end of the third quarter of 2019, on a last 12-months basis. Total cost reductions achieved to date amount to EUR 323 million compared with the full-year 2016 administrative expense base of EUR 1,970 million.

The net operating ROE of NN Group decreased to 8.8% compared with 9.9% in the third quarter of 2018, mainly due to higher equity. For the same reason, the net operating ROE in the first nine months of 2019 decreased to 9.2% from 9.7% in the same period of 2018.

David KNIBBE, CEO of NN Group, said:

"We are pleased to present NN Group's strong results for the third quarter of 2019, reflecting a continued focus on providing our customers with value-added products and services and an excellent experience. (...) Looking ahead, we have decided to move from quarterly to semi-annual reporting from 2020, as this better suits the long-term nature of our businesses."

More financial information about NN Group can be found at nn-group.com/Investors.htm

Source: nn-group.com

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