Earnings Release • Feb 14, 2019
Earnings Release
Open in ViewerOpens in native device viewer
'2018 was a successful year for our company. We further strengthened our market position and reached a number of important milestones in the integration process of Delta Lloyd's asset management, banking and the Dutch and Belgium insurance businesses. We obtained approval from the Dutch Central Bank (DNB) to expand our Partial Internal Model to include the Delta Lloyd Life and Non-life entities in the Netherlands, and we merged Delta Lloyd Life and Non-life into NN Life and Non-life on 1 January 2019. In the Netherlands and Belgium, we have achieved total cost reductions to date of EUR 289 million compared with the full-year 2016 administrative expense base. We have further integrated teams, systems and processes, increased efficiency, and introduced new products and services to meet our customers' needs. The rebranding of Delta Lloyd's products and services to Nationale-Nederlanden is virtually complete.
The 2018 operating result was up 3% compared with 2017, driven by better performance at Netherlands Life, Netherlands Non-life and Insurance Europe, while at the same time Japan Life, our asset manager and the reinsurance business faced some headwinds.
Commercial momentum continued, supported by an improved product mix that drove a 19.6% increase in the value of new businessin Europe and a 10.3% increase in Japan in 2018 compared with 2017. New sales in 2018 were down compared with 2017, as pension contracts in the Netherlands are not renewed each year and in 2018 we saw a lower volume of pension contracts coming up for renewal.
In line with our objective to achieve value creation and profitable growth, we completed the acquisition of Aegon's life insurance business in the Czech Republic and its life insurance and pension businesses in Slovakia in January 2019.
Our balance sheet remained strong in the fourth quarter, with a Solvency II ratio of 230% after deducting the final dividend, and a cash capital position of EUR 2,005 million. We will propose a 2018 final dividend of EUR 1.24 per ordinary share at our Annual General Meeting of Shareholders on 29 May 2019. Together with the interim dividend paid in September 2018, this brings the full-year 2018 dividend per ordinary share to EUR 1.90, up 14.5% compared
with 2017 and represents a pay-out ratio of 50% of the full-year 2018 net operating result of the ongoing business. This is in line with our aim for a double-digit increase in the dividend per share in 2018.
We are today announcing a programme to buy back shares up to EUR 500 million over a period of 12 months. This underlines our disciplined capital management as well as our commitment to returning excess capital to shareholders. At the same time, we believe it is essential to maintain a robust capital position and the financial flexibility to be able to pursue opportunities to strengthen our business further and to create additional value.
We again took steps to integrate Environmental, Social and Governance (ESG) considerations into our investment processes. Furthermore, NN Group increased its score in the Sustainalytics rating and now ranks amongst the leaders in the sector. In January 2019, NN Group was included in the Bloomberg Gender Equality Index. This index highlights 230 companies that are committed to transparency in workplace gender reporting.
All these achievements would not have been possible without the dedication and efforts of our employees and business partners. We continue to focus on our key priorities to successfully integrate Delta Lloyd, further improve performance, accelerate the transformation of the business model, and to allocate capital rationally. I am confident that the company is well-positioned to deliver on our priorities going forward.'
| In EUR million | 4Q18 | 4Q17 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Operating result ongoing business1) | 343 | 345 | −0.7% | 1,626 | 1,586 | 2.5% |
| Net result | −533 | 700 | 1,117 | 2,110 | −47.1% | |
| 4Q18 | 3Q18 | 4Q17 | ||||
| Solvency II ratio2) | 230% | 239% | 199% |
Note: All footnotes are included on page 29
Our businesses are built on a solid foundation of purpose, values and brand attributes, which, combined with a strong focus on our strategic priorities, enables us to create long-term value. This is how we deliver on our ambition to be a company that truly matters in the lives of our stakeholders.
In the Netherlands, new pension customers are selecting NN for its attractive products, the quality of service, and the financial conditions. For example, A.S. Watson transferred its pension plans to NN Life and BeFrank as of January 2019. Interfood, an international dairy company, also selected NN Life to manage its pension plan.
In November, NN Bank extended its mortgage product range by launching the 'Buy-to-Let' mortgage, specifically designed for financing residential property for private letting.
NN aimsto adapt its businessto changing market dynamics, and continuously looksfor new waysto meet customers' needs. In January 2019, Nationale-Nederlanden, together with a number of third parties, launched Perfect Day cybersecurity. Perfect Day, an initiative from the innovation centre Sparklab, focuses exclusively on SMEs. It includes a new service that offers practical insights (for example on vulnerability of websites, protection of client information or weak passwords), provides concrete solutions, and makes cybersecurity affordable.
We continue to explore options to build partnerships, and invest in technology and analytics that will help us to improve our offering. In line with this strategy, NN Group has entered into a partnership with Crunchr, a young company that develops and offers cloud solutions for workforce analytics. Its products and services enable companies to make workforce decisions using data and analytics. It also offers tooling for employee surveys. By adding the Crunchr products to its offering, NN will strengthen its position as a business partner.
The products of ABN AMRO Verzekeringen have been recognised by various organisations for their high quality. The company also received an award for best insurer by the Dutch magazine Management Team, and was given five
stars by MoneyView. Furthermore, OHRA received a bronze EFFIE, a respected communication award in the Netherlands, for its campaign 'Mobiel Verzekeren'. This year OHRA was awarded for its successful campaign 'Rob and Els', which met the set targets in terms of awareness, attitude and behaviour.
Movir, which offers individual disability insurance to self-employed workers in the Netherlands, was awarded the title of ´Best income insurer´ by the association of independent financial advisors, Adfiz. Movir also ranked first in the category 'Best Partner claims handling'.
NN's International Insurance businesses are expanding their portfolio of protection products and introduced several new propositions in various markets. For instance, Nationale-Nederlanden in Spain launched a new life insurance protection product, 'Contigo Familia', covering death, disability and illness, with different modular options tailored to a customer's profile and that of his or her family. Customers have 24/7 access to medical specialists through a health app called 'Meeting doctors'.
NN Life Japan continues to develop new Company-Owned Life Insurance (COLI) products, and expands and diversifies its distribution within the increasingly competitive market, with a focus on value over volume. COLI sales through Sumitomo Life accounted for 11% of NN Life Japan's total sales in 2018. Sumitomo Life agents started offering NN Life Japan's accelerated living disability benefit and increasing term products in April 2017, and its critical illness insurance as of April 2018. The new COLI product introduced in November 2018 provides coverage to business owners in the event of unforeseen accidents, the need for nursing care or disability. Sales performed well in the last two months of 2018.
NN Turkey launched a modular, flexible and innovative life protection product in November. The product supports customers throughout the different stages in life, with its benefits adapting to meet a customer's changing needs. NN Turkey also launched 'e-NN', the company's first online sales platform offering three products: life, critical illness and personal accident insurance assistance services. It aims to expand the product range in the near future.
In 2018, International Insurance set up a centre of excellence, 'NN Data Science Hub', to strengthen analytics capabilities and accelerate data-driven transformation. At NN, analytics is used to improve processes throughout the value chain: from product development to marketing and sales, from risk assessment and underwriting to claims management. For example, the Hub launched a pilot for a weather alert system for home insurance customers in Spain. When the official Spanish weather forecast website expects bad weather, an alert will be sent to customers so they can take appropriate measures to prevent any damages to their houses.
As a financial services company active in 18 countries, we operate within diverse regulatory environments. In Romania, where NN is market leader in life and pensions, the government approved significant changes to the second pension pillar in December 2018. These changes are being closely studied by NN and may impact the fundamentals of the second pension pillar system in Romania.
NN Investment Partners (NN IP) completed the integration of Delta Lloyd Asset Management (DLAM) in the second quarter of 2018. With the aim to better leverage on existing capabilities and accelerate decision-making, in November, NN IP announced its intention to consolidate the Luxembourg management company, NN Investment Partners Luxembourg S.A., with NN Investment Partners B.V., the Dutch licensed entity.
NN IP aims to establish and develop partnerships for distributing its products and solutions. In the fourth quarter of 2018, it reached an agreement to strengthen the long-term partnership with ING Bank Śląski in Poland. Under this agreement, ING Bank Śląski will acquire a 45% stake in NN IP in Poland, and distribute NN IP investment funds to the Polish retail market through its extensive branch network. In Japan, together with Rakuten Securities it announced the launch of a new investment service, which makes it possible to deliver a customised target-year investment solution for retail clients. The first products and solutions through NN IP's partnership with Irish Life Investment Management have been launched.
NN IP considers ESG analyses throughout the entire investment process. The NN (L) Euro Green Bond Fund has grown into one of the world's largest green bond funds, crossing an AuM of EUR 570 million. In the fourth quarter of 2018, NN IP launched the NN (L) European Sustainable Infrastructure Debt Fund, in response to growing investor demand for high quality infrastructure debt investments with robust and predictable cash flows, generated from assets that contribute to a more sustainable future.
In its latest update, Morningstar awarded Star Fund, the third pillar Belgian pension fund managed by NN IP Belgium, four Morningstar Globes. The fund also appears in the 14th percentile in terms of sustainability within the category "Allocation EUR flexible", making it the best-ranked Belgian third pillar pension fund distributed in Belgium.
In November 2018, NN Group was recognised with the overall fifth position in the 2018 Tax Transparency Benchmark. This study is commissioned by the Dutch Association of Investors for Sustainable Development (VBDO), and ranks 76 Dutch listed companies on their level of transparency regarding their tax strategy and implementation.
For the fourth consecutive year, NN Group improved its score in the Global Real Estate Sustainability Benchmark (GRESB), outperforming the majority of the 850 GRESB participants. In the 2018 assessment, NN Group investments in private real estate received an improved score of 80 (on a scale of 1 to 100) against a relevant benchmark average of 66. The portfolio maintained four stars out of five in the 2018 ranking. The GRESB is a leading global standard for assessing real estate's environmental, social and governance (ESG) performance, including performance indicators such as energy, greenhouse gas emissions, water and waste.
| In EUR million | 4Q18 | 4Q17 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Analysis of results1) | ||||||
| Netherlands Life | 192 | 170 | 12.8% | 972 | 896 | 8.5% |
| Netherlands Non-life | 40 | 25 | 58.1% | 94 | 30 | 213.5% |
| Insurance Europe | 72 | 68 | 6.2% | 271 | 260 | 4.5% |
| Japan Life | 29 | 25 | 16.0% | 167 | 200 | −16.4% |
| Asset Management | 30 | 46 | −34.2% | 155 | 161 | −3.9% |
| Other | −20 | 11 | −33 | 40 | ||
| Operating result ongoing business | 343 | 345 | −0.7% | 1,626 | 1,586 | 2.5% |
| Non-operating items ongoing business | 268 | 510 | −47.4% | 1,275 | 1,430 | −10.8% |
| of which gains/losses and impairments | 206 | 356 | −42.0% | 1,034 | 1,065 | −2.9% |
| of which revaluations | 210 | 172 | 22.7% | 427 | 346 | 23.4% |
| of which market & other impacts | −149 | −18 | −186 | 19 | ||
| Japan Closed Block VA | −11 | −3 | 1 | −9 | ||
| Special items | −99 | −102 | −321 | −234 | ||
| Amortisation and impairment of acquisition intangibles | −885 | −33 | −984 | −99 | ||
| Result on divestments | 0 | 28 | −100.0% | 60 | −150 | |
| Result before tax | −384 | 744 | 1,657 | 2,524 | −34.4% | |
| Taxation | 141 | 32 | 524 | 391 | 33.8% | |
| Minority interests | 8 | 12 | −37.9% | 16 | 22 | −27.6% |
| Net result | −533 | 700 | 1,117 | 2,110 | −47.1% | |
| Basic earnings per ordinary share in EUR3) | −1.63 | 2.04 | 3.15 | 6.21 | ||
| Key figures ongoing business1) | ||||||
| Gross premium income | 2,880 | 2,796 | 3.0% | 13,270 | 12,064 | 10.0% |
| New sales life insurance (APE) | 407 | 377 | 7.9% | 1,640 | 1,791 | −8.5% |
| Value of new business (VNB) | 391 | 345 | 13.4% | |||
| Total administrative expenses | 582 | 602 | −3.4% | 2,170 | 2,164 | 0.3% |
| Cost/income ratio (Administrative expenses/Operating income) | 32.7% | 34.6% | 30.1% | 32.3% | ||
| Combined ratio (Netherlands Non-life)4)5) | 96.4% | 99.6% | 99.4% | 102.0% | ||
| Investment margin/Life general account invested assets (bps)7) | 70 | 70 | ||||
| Net operating result8) | 244 | 255 | −4.5% | 1,206 | 1,191 | 1.3% |
| Net operating ROE9) | 6.9% | 8.2% | 8.9% | 10.3% | ||
| In EUR billion | 4Q18 | 3Q18 | Change | FY18 | FY17 | Change |
| Key figures ongoing business | ||||||
| Asset Management Assets under Management | 246 | 238 | 3.3% | 246 | 246 | −0.1% |
| Life general account invested assets | 138 | 137 | 0.8% | 138 | 135 | 2.2% |
| Total provisions for insurance & investment contracts | 158 | 159 | −0.5% | 158 | 158 | −0.2% |
| of which for risk policyholder | 28 | 29 | −4.6% | 28 | 29 | −2.9% |
| NN Life Solvency II ratio2) | 255% | 253% | 255% | 217% | ||
| Delta Lloyd Life Solvency II ratio2) | 180% | 202% | 180% | 153% | ||
| Key figures Japan Closed Block VA | ||||||
| Account value6) | 2,355 | 2,853 | −17.5% | 2,355 | 4,755 | −50.5% |
| Number of policies | 34,436 | 41,224 | −16.5% | 34,436 | 81,808 | −57.9% |
| Key figures total NN Group | ||||||
| Solvency II ratio2) | 230% | 239% | 230% | 199% | ||
| Total assets | 224 | 225 | −0.2% | 224 | 227 | −1.2% |
| Shareholders' equity6) | 22,850 | 23,014 | −0.7% | 22,850 | 22,718 | 0.6% |
| Employees (internal FTEs, end of period) | 14,122 | 14,200 | −0.6% | 14,122 | 14,505 | −2.6% |
Note: All footnotes are included on page 29
The operating result of the ongoing business was broadly stable at EUR 343 million compared with EUR 345 million in the fourth quarter of 2017. This reflects higher operating results at Netherlands Life, Netherlands Non-life, Insurance Europe and Japan Life, offset by lower operating results at the segment Other and Asset Management. The current quarter included a EUR -10 million impact of non-recurring items compared with EUR 14 million nonrecurring benefits for the same quarter in 2017.
The administrative expenses of the business units in the scope of the integration - Netherlands Life, Netherlands Non-life, Belgium, Asset Management, the banking business and Corporate/Holding entities - decreased by EUR 20 million in the fourth quarter of 2018, bringing the expense base down to EUR 1,734 million on a last 12 months basis. Total cost reductions achieved to date amount to EUR 289 million compared with the full-year 2016 administrative expense base of EUR 2,024 million.
The operating result of Netherlands Life increased to EUR 192 million from EUR 170 million in the fourth quarter of 2017, reflecting a higher technical margin and lower administrative expenses, partly offset by a lower investment margin.
The operating result of Netherlands Non-life increased to EUR 40 million from EUR 25 million in the fourth quarter of 2017, which benefited from EUR 4 million private equity dividends. The increase was mainly driven by an improved underwriting performance in Disability & Accident and lower administrative expenses, partly offset by lower investment and other income. The combined ratio improved to 96.4% from 99.6% in the fourth quarter of 2017.
The operating result of Insurance Europe increased to EUR 72 million from EUR 68 million in the fourth quarter of 2017 driven by a decrease in total administrative expenses and lower DAC amortisation and trail commissions, partly offset by a lower technical margin.
The operating result of Japan Life was EUR 29 million, up 10.7% from the fourth quarter of 2017, excluding currency effects, reflecting higher fees and premium-based revenues, partially offset by higher DAC amortisation and trail commissions.
The operating result of Asset Management decreased to EUR 30 million from EUR 46 million in the fourth quarter of 2017 due to lower fees and a non-recurring benefit of EUR 10 million in the same quarter of 2017, partly compensated by a decrease of administrative expenses.
The operating result of the segment Other decreased to EUR -20 million from EUR 11 million in the fourth quarter of 2017, due to a lower holding result and lower operating results of the reinsurance and banking businesses.
The full-year 2018 operating result of the ongoing business increased to EUR 1,626 million from EUR 1,586 million in 2017. The operating result in 2017 benefited from a total of EUR 104 million of private equity dividends and special dividends as well as non-recurring items while the operating result in 2018 benefited from a total of EUR 38 million of such items. Excluding these items, the increase reflects improved results at Netherlands Life, Netherlands Nonlife and Insurance Europe and expense reductions, as well as the inclusion of Delta Lloyd from the second quarter of 2017, partly offset by a lower operating result at Japan Life.
The result before tax was EUR -384 million versus EUR 744 million in the fourth quarter of 2017, reflecting a EUR 852 million impairment of goodwill and lower non-operating items.
Gains/losses and impairments were EUR 206 million compared with EUR 356 million in the fourth quarter of 2017. The current quarter reflects EUR 208 million of capital gains on the sale of debt securities and EUR 53 million of capital gains on the sale of equity securities, partly offset by EUR 54 million of impairments on equity securities.
Revaluations were EUR 210 million compared with EUR 172 million in the fourth quarter of 2017. The current quarter reflects positive revaluations on real estate of EUR 97 million and negative revaluations on private equity of EUR -33 million, as well as EUR 146 million of positive revaluations of derivatives used for hedging purposes.
Market and other impacts were EUR -149 million versus EUR -18 million in the fourth quarter of 2017, largely reflecting movements in the provisions for guarantees on unit-linked, separate account pension contracts and inflation-linked liabilities (all net of hedging) at Netherlands Life.
The result before tax of Japan Closed Block VA was EUR -11 million versus EUR -3 million in the fourth quarter of 2017, reflecting a hedge-related loss and a lower operating result.
Special items amounted to EUR -99 million compared with EUR -102 million in the fourth quarter of 2017. The special items in the current quarter mainly relate to restructuring expenses incurred in respect of the cost reduction target for Netherlands Life, Netherlands Non-life, Belgium, Asset Management, the banking business and Corporate/Holding entities.
Amortisation and impairment of acquisition intangibles amounted to EUR -885 million in the fourth quarter of 2018, reflecting a goodwill impairment of EUR 852 million and EUR 33 million for the amortisation of acquisition intangibles. As the integration of NN Life and Delta Lloyd Life has progressed further with the approval of the legal merger, the two businesses have been combined into one cash generating unit, being the segment Netherlands Life, for the purpose of goodwill impairment testing. As the IFRS book value of the combined Netherlands Life segment is higher than the fair value of its assets and liabilities, the goodwill for Delta Lloyd Life of EUR 852 million was impaired through a charge in the IFRS profit and loss account in the fourth quarter of 2018.
There was no impact from divestments in the fourth quarter of 2018 compared with EUR 28 million in the fourth quarter of 2017, which reflected a gain on the sale of NN Life Luxembourg and a provision release following settlement in the arbitration proceedings with respect to ING Life Korea.
The full-year 2018 result before tax decreased to EUR 1,657 million from EUR 2,524 million in 2017, reflecting the impairment of the goodwill, lower non-operating items and higher special items, partly compensated by the result on divestments and the higher operating result of the ongoing business. The full-year special items of EUR -321 million includes EUR -258 million of restructuring expenses, with the remainder relating to other projects. The result of divestments for 2018 mainly reflects the recognition of an additional divestment result (before tax) in 3Q18 related to the sale of NN Group's former insurance subsidiary ING Life Korea to MBK in December 2013.
The net result was EUR -533 million compared with EUR 700 million in the fourth quarter of 2017. Excluding the nondeductible costs of the impairment of acquisition intangibles, the effective tax rate was 30.2% reflecting the impact of a remeasurement of the Dutch deferred tax positions due to the Dutch corporate income tax rate reduction for the coming years (enacted and published in December 2018). In the fourth quarter of 2017, the effective tax rate of 4.3% reflected tax-exempt dividends and capital gains in the Netherlands related to shareholdings of 5% or more.
Total new sales (APE) at NN Group increased to EUR 407 million, up 8.1% from the fourth quarter of 2017, at constant currencies. New sales at Japan Life were up 15.3%, excluding currency effects, driven by a new COLI product launched in November 2018. APE at Netherlands Life increased to EUR 35 million versus EUR 30 million in the fourth quarter of 2017, reflecting a higher volume of group pension contracts. At Insurance Europe, new sales were broadly stable reflecting lower sales of savings products in Greece and Spain as well as adverse economic conditions in Turkey, offset by higher unit-linked sales in Belgium.
In 2018, total new sales were down 5.9% on a constant currency basis to EUR 1,640 million, due to lower sales at Netherlands Life and Insurance Europe, partly compensated by higher sales at Japan Life.
The value of new business (VNB) in 2018 amounted to EUR 391 million, up 13.4% on 2017, driven by an improved product mix at Insurance Europe and Japan Life.
The net operating ROE of the ongoing business of NN Group decreased to 6.9% compared with 8.2% in the fourth quarter of 2017. The full-year 2018 net operating ROE decreased to 8.9% from 10.3% for 2017, due to an increase of equity.
Certain changes will be made to the segment reporting of NN Group as from the first quarter of 2019. The banking business, which is currently included in the segment 'Other', will be reported as a separate segment. At the same time, the segment Japan Closed Block VA will no longer be reported separately. Going forward, the results of Japan Closed Block VA will be included in the segment 'Other' as a non-operating item ('Market & other impacts'). The NN Re VA Europe results will also be reclassified from the operating result of the Reinsurance business to non-operating items ('Market & other impacts') within the segment 'Other'.
In the Asset Management segment, the Fixed Service Fee expenses will be reclassified from Administrative expenses to Fees, and presented in the same line item as the related Fixed Service Fee income. In addition, the income and expenses related to certain investment administrative activities will be transferred from the Asset Management segment to the Holding result in the segment 'Other'. These changes will have no material impact on the Operating result of Asset Management.
A pro forma financial supplement showing the restated quarterly 2018 results will be published on the NN Group website on 15 February 2019.
| In EUR million | 4Q18 | 4Q17 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Analysis of results | ||||||
| Investment margin | 184 | 212 | −13.3% | 872 | 843 | 3.5% |
| Fees and premium-based revenues | 106 | 110 | −4.0% | 444 | 429 | 3.6% |
| Technical margin | 44 | 5 | 188 | 180 | 4.6% | |
| Operating income non-modelled business | 0 | 0 | 0 | 0 | ||
| Operating income | 334 | 328 | 1.7% | 1,504 | 1,452 | 3.6% |
| Administrative expenses | 133 | 147 | −9.7% | 494 | 513 | −3.8% |
| DAC amortisation and trail commissions | 9 | 11 | −17.6% | 38 | 43 | −10.5% |
| Expenses | 142 | 158 | −10.2% | 532 | 556 | −4.3% |
| Operating result | 192 | 170 | 12.8% | 972 | 896 | 8.5% |
| Non-operating items | 324 | 529 | −38.8% | 1,310 | 1,351 | −3.0% |
| of which gains/losses and impairments | 223 | 337 | −33.8% | 1,022 | 967 | 5.7% |
| of which revaluations | 222 | 187 | 18.7% | 428 | 340 | 26.0% |
| of which market & other impacts | −121 | 5 | −140 | 44 | ||
| Special items | −18 | −12 | −63 | −42 | ||
| Result on divestments | 0 | 0 | 56 | 0 | ||
| Result before tax | 498 | 687 | −27.5% | 2,275 | 2,204 | 3.2% |
| Taxation | 107 | 61 | 76.1% | 430 | 329 | 30.5% |
| Minority interests | 5 | 7 | −35.3% | 10 | 13 | −22.8% |
| Net result | 386 | 619 | −37.6% | 1,835 | 1,862 | −1.5% |
| New business | ||||||
| Single premiums | 137 | 114 | 20.9% | 479 | 428 | 11.8% |
| Regular premiums | 21 | 19 | 9.4% | 214 | 325 | −34.2% |
| New sales life insurance (APE) | 35 | 30 | 13.7% | 262 | 368 | −28.8% |
| Value of new business | 9 | 10 | −12.5% | |||
| Key figures | ||||||
| Gross premium income | 760 | 699 | 8.8% | 3,602 | 3,072 | 17.3% |
| Total administrative expenses | 133 | 147 | −9.7% | 494 | 513 | −3.8% |
| Cost/income ratio (Administrative expenses/Operating income) | 39.8% | 44.9% | 32.8% | 35.4% | ||
| Investment margin/Life general account invested assets (bps)7) | 85 | 84 | ||||
| Net operating ROE10) | 5.6% | 6.3% | 7.9% | 9.0% |
| In EUR billion | 4Q18 | 3Q18 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Key figures | ||||||
| Life general account invested assets | 103 | 103 | 0.4% | 103 | 102 | 1.4% |
| Total provisions for insurance & investment contracts | 112 | 113 | −1.1% | 112 | 114 | −1.9% |
| of which for risk policyholder | 21 | 22 | −5.0% | 21 | 21 | −4.0% |
| Allocated equity (end of period)6)10) | 16,892 | 16,322 | 3.5% | 16,892 | 16,128 | 4.7% |
| NN Life Solvency II ratio2) | 255% | 253% | 255% | 217% | ||
| Delta Lloyd Life Solvency II ratio2) | 180% | 202% | 180% | 153% | ||
| Employees (internal FTEs, end of period) | 2,450 | 2,498 | −1.9% | 2,450 | 2,610 | −6.1% |
The operating result of Netherlands Life increased to EUR 192 million from EUR 170 million in the fourth quarter of 2017, reflecting a higher technical margin and lower administrative expenses, partly offset by a lower investment margin.
The investment margin decreased to EUR 184 million compared with EUR 212 million in the fourth quarter of 2017, which included private equity dividends of EUR 31 million. The investment spread, calculated on a four quarter rolling average, increased to 85 basis points from 84 basis points in the fourth quarter of 2017.
Fees and premium-based revenues decreased to EUR 106 million versus EUR 110 million in the fourth quarter of 2017 due to the run-off of the individual life closed book as well as lower margins in the pension business.
The technical margin increased to EUR 44 million versus EUR 5 million in the fourth quarter of 2017. The fourth quarter of 2017 reflected non-recurring items of EUR -33 million as well as negative mortality and morbidity experience.
Administrative expenses decreased to EUR 133 million compared with EUR 147 million in the fourth quarter of 2017 as a result of lower staff and IT-related expenses.
DAC amortisation and trail commissions decreased to EUR 9 million compared with EUR 11 million in the fourth quarter of 2017 due to the run-off of the individual life closed book.
The result before tax decreased to EUR 498 million from EUR 687 million in the fourth quarter of 2017, reflecting lower non-operating items, partly offset by the higher operating result. Gains/losses and impairments decreased to EUR 223 million from EUR 337 million in the same period in 2017. This quarter mainly reflects capital gains on the sale of debt securities, whereas the fourth quarter of 2017 benefited from capital gains of EUR 303 million realised on the sale of public equities, including the Unilever preference shares. Revaluations increased to EUR 222 million compared with EUR 187 million in the fourth quarter of 2017. The current quarter reflects positive revaluations on derivatives used for hedging purposes and real estate, partly offset by negative revaluations on private equity. Market and other impacts decreased to EUR -121 million mainly reflecting movements in the provisions for guarantees on unit-linked, separate account pension contracts and inflation-linked liabilities (all net of hedging).
New sales (APE) increased to EUR 35 million compared with EUR 30 million in the fourth quarter of 2017, reflecting a higher volume of group pension contracts.
The full-year 2018 operating result increased to EUR 972 million from EUR 896 million in 2017. The increase reflects the inclusion of Delta Lloyd from the second quarter of 2017, higher investment margin and expense reductions. The investment margin for full-year 2018 includes private equity and special dividends for a total amount of EUR 110 million, whereas the same period in 2017 included EUR 93 million of such items.
The full-year 2018 result before tax increased to EUR 2,275 million compared with EUR 2,204 million in 2017. The increase mainly reflects the higher operating result.
New sales (APE) decreased to EUR 262 million in 2018 from EUR 368 million in 2017, reflecting a lower volume of group pension contracts up for renewal, partly offset by the inclusion of Delta Lloyd from the second quarter of 2017.
The value of new business (VNB) in 2018 was EUR 9 million versus EUR 10 million for the year 2017.
| In EUR million | 4Q18 | 4Q17 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Analysis of results | ||||||
| Earned premiums | 786 | 712 | 10.4% | 2,954 | 2,497 | 18.3% |
| Investment income | 26 | 33 | −21.8% | 118 | 117 | 1.6% |
| Other income | −4 | 1 | −4 | 3 | ||
| Operating income | 807 | 745 | 8.3% | 3,068 | 2,617 | 17.3% |
| Claims incurred, net of reinsurance | 544 | 520 | 4.6% | 2,151 | 1,898 | 13.3% |
| Acquisition costs | 147 | 108 | 35.4% | 534 | 382 | 39.9% |
| Administrative expenses | 83 | 97 | −14.0% | 316 | 329 | −3.8% |
| Acquisition costs and administrative expenses | 230 | 205 | 12.1% | 850 | 710 | 19.7% |
| Expenditure | 773 | 725 | 6.7% | 3,001 | 2,608 | 15.1% |
| Operating result insurance businesses | 34 | 20 | 65.1% | 67 | 8 | |
| Operating result health business and broker businesses | 6 | 5 | 28.6% | 27 | 22 | 26.0% |
| Total operating result | 40 | 25 | 58.1% | 94 | 30 | 213.5% |
| Non-operating items | −19 | 29 | −2 | 49 | ||
| of which gains/losses and impairments | −1 | 29 | 11 | 34 | −68.1% | |
| of which revaluations | −4 | 7 | 2 | 22 | −91.2% | |
| of which market & other impacts | −14 | −6 | −15 | −6 | ||
| Special items | −31 | −14 | −91 | −19 | ||
| Result on divestments | 0 | 0 | 0 | 0 | ||
| Result before tax | −10 | 40 | 1 | 60 | −98.8% | |
| Taxation | −1 | −3 | −2 | −3 | ||
| Minority interests | 3 | 5 | −42.2% | 6 | 9 | −35.5% |
| Net result | −12 | 38 | −3 | 54 | ||
| Key figures | ||||||
| Gross premium income | 553 | 553 | 0.1% | 3,083 | 2,579 | 19.5% |
| Total administrative expenses11) | 103 | 118 | −12.3% | 393 | 398 | −1.2% |
| Combined ratio4)5) | 96.4% | 99.6% | 99.4% | 102.0% | ||
| of which Claims ratio4)5) | 67.1% | 70.8% | 70.6% | 73.5% | ||
| of which Expense ratio5) | 29.3% | 28.8% | 28.8% | 28.4% | ||
| Net operating ROE10) | 19.2% | 12.2% | 10.8% | 4.3% |
| In EUR billion | 4Q18 | 3Q18 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Key figures | ||||||
| Total insurance provisions | 6 | 6 | −3.2% | 6 | 6 | 2.8% |
| Allocated equity (end of period)6)10) | 855 | 915 | −6.6% | 855 | 978 | −12.6% |
| Employees (internal FTEs, end of period) | 2,804 | 2,802 | 0.1% | 2,804 | 2,682 | 4.6% |
The operating result of Netherlands Non-life increased to EUR 40 million from EUR 25 million in the fourth quarter of 2017, which benefited from EUR 4 million private equity dividends. The increase was mainly driven by an improved underwriting performance in Disability & Accident and lower administrative expenses, partly offset by lower investment and other income. The combined ratio improved to 96.4% from 99.6% in the fourth quarter of 2017.
The operating result in Disability & Accident (D&A) improved to EUR 17 million from EUR 2 million in the fourth quarter of 2017, reflecting a favourable claims experience and lower administrative expenses partly offset by lower investment and other income. The D&A combined ratio was 93.7% compared with 102.1% in the fourth quarter of 2017.
The operating result in Property & Casualty (P&C) was broadly stable at EUR 17 million versus EUR 18 million in the fourth quarter of 2017, reflecting better underwriting performance offset by lower investment and other income. The P&C combined ratio improved to 97.6% from 98.3% in the fourth quarter of 2017.
Administrative expenses decreased to EUR 83 million from EUR 97 million in the fourth quarter of 2017 reflecting the synergy benefits from the integration of Delta Lloyd and expense reductions.
The operating result of the health and broker business was EUR 6 million versus EUR 5 million in the fourth quarter of 2017.
The result before tax of Netherlands Non-life was EUR -10 million in the fourth quarter of 2018 from EUR 40 million in the fourth quarter of 2017, reflecting lower non-operating items and higher special items, partly offset by the higher operating result. Gains/losses and impairments decreased to EUR -1 million from EUR 29 million in the same period in 2017, which benefited from gains on the sale of the preference shares in Unilever. Special items were EUR -31 million from EUR -14 million in the same period in 2017, reflecting restructuring expenses and costs related to the termination of the cooperation with legal aid service provider SRK.
The full-year 2018 operating result of Netherlands Non-life increased to EUR 94 million from EUR 30 million in 2017. The increase of the operating result is mainly attributable to an improved underwriting performance in D&A and P&C, expense reductions and the inclusion of Delta Lloyd from the second quarter of 2017. The 2018 operating result includes the impact of the January storm of EUR 56 million, while 2017 included the impact of the strengthening of insurance liabilities for bodily injury claims of EUR 40 million.
The full-year 2018 result before tax decreased to EUR 1 million from EUR 60 million in 2017. The decrease is mainly due to higher special items and the impact of lower non-operating items, partly compensated by the higher operating result. Special items include restructuring expenses, a charge related to the agreement with Van Ameyde to insource claims handling activities and costs related to the termination of the cooperation with legal aid service provider SRK.
The combined ratio for 2018 was 99.4% compared with 102.0% in 2017. Excluding the impact of the January 2018 storm and the strengthening of insurance liabilities in 2017, the combined ratio for 2018 improved to 97.5% from 100.4% for 2017.
| In EUR million | 4Q18 | 4Q17 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Analysis of results | ||||||
| Investment margin | 30 | 30 | 1.7% | 93 | 91 | 2.2% |
| Fees and premium-based revenues | 177 | 176 | 0.6% | 703 | 679 | 3.5% |
| Technical margin | 47 | 52 | −9.6% | 207 | 196 | 6.0% |
| Operating income non-modelled business | 0 | 1 | 1 | 3 | ||
| Operating income Life Insurance | 255 | 259 | −1.5% | 1,005 | 969 | 3.7% |
| Administrative expenses | 98 | 108 | −9.2% | 398 | 386 | 2.9% |
| DAC amortisation and trail commissions | 81 | 85 | −4.5% | 328 | 325 | 0.9% |
| Expenses Life Insurance | 179 | 193 | −7.1% | 725 | 711 | 2.0% |
| Operating result Life Insurance | 76 | 66 | 14.7% | 280 | 258 | 8.4% |
| Operating result Non-life | −4 | 1 | −8 | 1 | ||
| Operating result | 72 | 68 | 6.2% | 271 | 260 | 4.5% |
| Non-operating items | −26 | −52 | 4 | −10 | ||
| of which gains/losses and impairments | −16 | −20 | −2 | 9 | ||
| of which revaluations | 1 | −15 | 22 | 0 | ||
| of which market & other impacts | −11 | −17 | −16 | −19 | ||
| Special items | −10 | −10 | −28 | −21 | ||
| Result on divestments | 0 | 20 | −100.0% | 0 | 20 | −100.0% |
| Result before tax | 37 | 26 | 42.7% | 247 | 248 | −0.5% |
| Taxation | 7 | −18 | 55 | 26 | 115.9% | |
| Minority interests | 0 | 0 | 0 | 0 | ||
| Net result | 30 | 43 | −31.0% | 191 | 222 | −13.9% |
| New business | ||||||
| Single premiums | 350 | 384 | −8.8% | 1,156 | 1,301 | −11.2% |
| Regular premiums | 131 | 137 | −4.2% | 512 | 531 | −3.7% |
| New sales life insurance (APE) | 166 | 175 | −5.2% | 627 | 661 | −5.1% |
| Value of new business | 168 | 141 | 19.6% | |||
| Key figures | ||||||
| Gross premium income | 762 | 849 | −10.3% | 2,931 | 2,921 | 0.4% |
| Total administrative expenses (Life & Non-life) | 105 | 111 | −5.5% | 418 | 398 | 4.9% |
| Cost/income ratio (Administrative expenses/Operating income) | 40.0% | 41.9% | 40.3% | 40.0% | ||
| Investment margin/Life general account invested assets (bps)7) | 50 | 51 | ||||
| Net operating ROE10) | 11.6% | 10.5% | 10.9% | 10.2% | ||
| In EUR billion | 4Q18 | 3Q18 | Change | FY18 | FY17 | Change |
| Key figures | ||||||
| Life general account invested assets | 18 | 18 | −1.2% | 18 | 19 | −4.6% |
| Total provisions for insurance & investment contracts | 25 | 25 | −0.9% | 25 | 26 | −2.7% |
| of which for risk policyholder | 7 | 7 | −3.6% | 7 | 7 | 0.5% |
| Assets under management pensions12) | 18 | 19 | −1.3% | 18 | 19 | −4.2% |
| Allocated equity (end of period)6)10) | 2,307 | 2,273 | 1.5% | 2,307 | 2,481 | −7.0% |
Note: For data in constant currencies, refer to the 'NN Group Financial Supplement: 2.4.1 Analysis of results: Insurance Europe – Excluding currency effects'
Employees (internal FTEs, end of period) 4,562 4,558 0.1% 4,562 4,521 0.9%
The operating result of Insurance Europe increased to EUR 72 million from EUR 68 million in the fourth quarter of 2017 driven by a decrease in total administrative expenses and lower DAC amortisation & trail commissions, partly offset by a lower technical margin.
The investment margin was stable at EUR 30 million.
Fees and premium-based revenues were broadly stable at EUR 177 million versus EUR 176 million in the fourth quarter of 2017. The current quarter reflects higher fees from a better portfolio mix, offset by negative currency impacts and adverse economic conditions in Turkey as well as the sale of Luxembourg in October 2017.
The technical margin decreased to EUR 47 million from EUR 52 million in the fourth quarter of 2017 mainly due to lower morbidity and mortality results in Belgium.
Administrative expenses decreased to EUR 98 million from EUR 108 million reflecting lower project and IT-related expenses and a reclassification of expenses from the Life to Non-life lines.
DAC amortisation and trail commissions decreased to EUR 81 million from EUR 85 million.
The result before tax increased to EUR 37 million from EUR 26 million in the fourth quarter of 2017, reflecting the higher operating result and negative fixed income revaluations in the fourth quarter of 2017, partly offset by the gain on the sale of NN Life Luxembourg in October 2017.
New sales (APE) decreased to EUR 166 million from EUR 175 million in the fourth quarter of 2017, mainly due to lower sales of savings products in Greece and Spain as well as currency impacts and adverse economic conditions in Turkey, partly offset by higher unit-linked sales in Belgium.
The full-year 2018 operating result of Insurance Europe increased to EUR 271 million from EUR 260 million in 2017, mainly driven by favourable mortality results and the inclusion of Delta Lloyd Belgium from the second quarter of 2017, partly offset by Non-life project expenses.
The full-year 2018 result before tax was broadly stable at EUR 247 million, reflecting the higher operating result and negative fixed income revaluations in 2017, partly offset by the gain on the sale of NN Life Luxembourg in October in 2017.
Full-year 2018 new sales (APE) decreased to EUR 627 million from EUR 661 million in 2017. The decrease reflects lower sales of savings products in Greece and Spain, currency impacts and adverse economic conditions in Turkey and the sale of NN Life Luxembourg in October 2017. This was partly offset by higher unit-linked sales in Belgium and the inclusion of Delta Lloyd Belgium from the second quarter of 2017.
The full-year 2018 value of new business (VNB) increased to EUR 168 million, up 19.6% from 2017, reflecting an improved product mix.
| In EUR million | 4Q18 | 4Q17 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Analysis of results | ||||||
| Investment margin | −3 | −2 | −9 | −7 | ||
| Fees and premium-based revenues | 130 | 117 | 11.0% | 605 | 599 | 1.0% |
| Technical margin | 1 | −3 | −1 | 11 | ||
| Operating income non-modelled business | 0 | 0 | 0 | 0 | ||
| Operating income | 128 | 112 | 14.2% | 594 | 602 | −1.4% |
| Administrative expenses | 40 | 36 | 11.4% | 140 | 139 | 0.6% |
| DAC amortisation and trail commissions | 58 | 51 | 15.2% | 287 | 264 | 8.8% |
| Expenses | 98 | 86 | 13.6% | 427 | 403 | 6.0% |
| Operating result | 29 | 25 | 16.0% | 167 | 200 | −16.4% |
| Non-operating items | −9 | −4 | −25 | −11 | ||
| of which gains/losses and impairments | 0 | 0 | −3 | 8 | ||
| of which revaluations | −9 | −4 | −22 | −19 | ||
| of which market & other impacts | 0 | 0 | 0 | 0 | ||
| Special items | −1 | 0 | −3 | 0 | ||
| Result on divestments | 0 | 0 | 0 | 0 | ||
| Result before tax | 19 | 21 | −8.7% | 139 | 188 | −26.4% |
| Taxation | 8 | 8 | −0.3% | 41 | 55 | −24.7% |
| Minority interests | 0 | 0 | 0 | 0 | ||
| Net result | 12 | 13 | −13.4% | 97 | 133 | −27.1% |
| New business | ||||||
| Single premiums | 0 | 0 | 0 | 0 | ||
| Regular premiums | 206 | 171 | 20.2% | 751 | 762 | −1.5% |
| New sales life insurance (APE) | 206 | 171 | 20.2% | 751 | 762 | −1.5% |
| Value of new business | 214 | 194 | 10.3% | |||
| Key figures | ||||||
| Gross premium income | 797 | 690 | 15.6% | 3,628 | 3,470 | 4.5% |
| Total administrative expenses | 40 | 36 | 11.4% | 140 | 139 | 0.6% |
| Cost/income ratio (Administrative expenses/Operating income) | 31.4% | 32.2% | 23.6% | 23.1% | ||
| Net operating ROE10)13) | 4.7% | 4.4% | 6.8% | 9.0% |
| In EUR billion | 4Q18 | 3Q18 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Key figures | ||||||
| Life general account invested assets | 16 | 16 | 5.8% | 16 | 14 | 17.6% |
| Total provisions for insurance & investment contracts | 15 | 14 | 6.8% | 15 | 13 | 19.0% |
| of which for risk policyholder | 0 | 0 | −8.4% | 0 | 0 | −6.3% |
| Allocated equity (end of period)6)10)13) | 2,358 | 2,124 | 11.0% | 2,358 | 2,116 | 11.4% |
| Employees (internal FTEs, end of period) | 829 | 830 | −0.1% | 829 | 801 | 3.5% |
Note: For data in constant currencies, refer to the 'NN Group Financial Supplement: 2.5.1 Analysis of results: Japan Life – Excluding currency effects'
The operating result of Japan Life was EUR 29 million, up 10.7% from the fourth quarter of 2017, excluding currency effects, reflecting higher fees and premium-based revenues, partially offset by higher DAC amortisation and trail commissions.
Fees and premium-based revenues were EUR 130 million, up 6.5% from the fourth quarter of 2017, excluding currency effects, driven by higher in-force volumes.
The technical margin was EUR 1 million and increased from EUR -3 million in the fourth quarter of 2017 mainly due to higher mortality and morbidity results.
Administrative expenses were EUR 40 million, up 7.0%, excluding currency effects, from the fourth quarter of 2017, reflecting higher marketing expenses and IT-related investments to support business growth.
DAC amortisation and trail commissions were EUR 58 million, up 10.7% from the fourth quarter of 2017, excluding currency effects, reflecting increased DAC amortisation from surrenders.
The result before tax was EUR 19 million, down EUR 2 million from the fourth quarter of 2017, reflecting lower nonoperating items, partly offset by the higher operating result.
New sales (APE) were EUR 206 million, up 15.3% from the fourth quarter of 2017, excluding currency effects, driven by a new COLI product launched in November 2018.
The full-year 2018 operating result of Japan Life was EUR 167 million, down 13.2% compared with 2017, excluding currency effects. The decrease reflects higher DAC amortisation and trail commissions driven by surrenders and a lower technical margin, partially offset by higher fees and premium-based revenues on higher in-force volumes.
The full-year 2018 result before tax was EUR 139 million, down 23.3% at constant currencies from 2017, due to the lower operating result and lower non-operating items reflecting capital gains in the first quarter of 2017.
Full-year 2018 new sales (APE) were EUR 751 million, up 1.0% from 2017 at constant currencies, reflecting higher sales from the Sumitomo channel and sales from a new COLI product launched in November while competition in the COLI market continues to intensify.
The full-year 2018 value of new business (VNB) increased to EUR 214 million, up 10.3%, from 2017, mainly driven by an improved product mix.
| In EUR million | 4Q18 | 4Q17 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Analysis of results | ||||||
| Investment income | 0 | 0 | −1 | 0 | ||
| Fees | 123 | 143 | −14.0% | 508 | 530 | −4.2% |
| Operating income | 123 | 143 | −14.0% | 507 | 530 | −4.3% |
| Administrative expenses | 93 | 97 | −4.5% | 352 | 369 | −4.4% |
| Operating result | 30 | 46 | −34.2% | 155 | 161 | −3.9% |
| Non-operating items | 0 | 0 | 0 | 0 | ||
| of which gains/losses and impairments | 0 | 0 | 0 | 0 | ||
| of which revaluations | 0 | 0 | 0 | 0 | ||
| of which market & other impacts | 0 | 0 | 0 | 0 | ||
| Special items | −15 | −15 | −31 | −22 | ||
| Result on divestments | 0 | 0 | 0 | 0 | ||
| Result before tax | 15 | 31 | −49.9% | 123 | 139 | −11.1% |
| Taxation | 4 | 6 | −24.4% | 29 | 32 | −7.0% |
| Minority interests | 0 | 0 | 0 | 0 | ||
| Net result | 11 | 25 | −55.4% | 94 | 107 | −12.3% |
| Key figures | ||||||
| Total administrative expenses | 93 | 97 | −4.5% | 352 | 369 | −4.4% |
| Cost/income ratio (Administrative expenses/Operating income) | 75.6% | 68.1% | 69.5% | 69.6% | ||
| Fees/average Assets under Management (in bps) | 20 | 23 | 21 | 24 | ||
| Net operating ROE10) | 22.8% | 30.2% | 27.6% | 27.7% | ||
| In EUR billion | 4Q18 | 3Q18 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Key figures | ||||||
| Assets under Management | 246 | 238 | 3.3% | 246 | 246 | −0.1% |
| Allocated equity (end of period)6)10) | 371 | 409 | −9.4% | 371 | 447 | −17.0% |
| Employees (internal FTEs, end of period) | 982 | 1,030 | −4.6% | 982 | 1,171 | −16.1% |
| In EUR billion | ||||||
| AuM roll-forward | ||||||
| Beginning of period | 238 | 240 | −0.7% | 246 | 195 | 26.5% |
| Net inflow | 0 | −1 | −6 | 0 | ||
| Acquisition / Divestments / Transfers | 10 | 0 | 7 | 52 | ||
| Market performance (incl. FX impact) and Other | −2 | 0 | −1 | 0 | ||
| End of period | 246 | 238 | 3.3% | 246 | 246 | −0.1% |
Total Assets under Management (AuM) at Asset Management increased to EUR 246 billion at the end of the fourth quarter of 2018 from EUR 238 billion at the end of the third quarter of 2018. The increase reflects a EUR 9.9 billion transfer of Delta Lloyd mortgages from NN Bank to NN Investment Partners, net inflows of EUR 0.2 billion in Proprietary and Other Affiliates, partly offset by negative market performance of EUR 2.2 billion.
The operating result decreased to EUR 30 million from EUR 46 million in the fourth quarter of 2017 due to lower fees, partly compensated by a decrease of administrative expense.
Fees were EUR 123 million, down from EUR 143 million in the fourth quarter of 2017, which included EUR 10 million of non-recurring performance fees. The decrease also reflects lower average AuM, a change in the asset mix and fee pressure.
Administrative expenses decreased to EUR 93 million from EUR 97 million in the fourth quarter of 2017, driven by the synergy benefits from the integration of Delta Lloyd Asset Management as well as expense reductions, partly offset by investments in growth initiatives.
The fourth-quarter result before tax decreased to EUR 15 million compared with EUR 31 million in the fourth quarter of 2017 due to the lower operating result.
The full-year 2018 operating result was EUR 155 million compared with EUR 161 million in 2017. This decrease reflects lower fees, due to lower average AuM, a change in the asset mix and fee pressure, as well as EUR 10 million of non-recurring performance fees in 2017, partly offset by lower administrative expenses.
The full-year 2018 result before tax decreased to EUR 123 million from EUR 139 million in 2017 due to the lower operating result and higher special items reflecting restructuring expenses.
| In EUR million | 4Q18 | 4Q17 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Analysis of results | ||||||
| Interest on hybrids and debt14) | −27 | −31 | −108 | −130 | ||
| Investment income and fees | 24 | 29 | −18.4% | 96 | 102 | −6.6% |
| Holding expenses | −49 | −30 | −156 | −121 | ||
| Amortisation of intangible assets | 0 | 0 | −1 | −2 | ||
| Holding result | −52 | −31 | −170 | −150 | ||
| Operating result reinsurance business | 2 | 9 | −73.6% | −12 | 43 | |
| Operating result banking business | 28 | 32 | −11.7% | 128 | 124 | 3.5% |
| Other results | 2 | 3 | −14.0% | 21 | 23 | −11.3% |
| Operating result | −20 | 11 | −33 | 40 | ||
| Non-operating items | −2 | 7 | −11 | 51 | ||
| of which gains/losses and impairments | 0 | 10 | −96.0% | 7 | 48 | −85.3% |
| of which revaluations | 0 | −3 | −3 | 4 | ||
| of which market & other impacts | −3 | 0 | −15 | 0 | ||
| Special items | −25 | −51 | −104 | −129 | ||
| Amortisation and impairment of acquisition intangibles | −885 | −33 | −984 | −99 | ||
| Result on divestments | 0 | 9 | −100.0% | 4 | −170 | |
| Result before tax | −932 | −57 | −1,129 | −306 | ||
| Taxation | 14 | −21 | −36 | −45 | ||
| Minority interests | 0 | 0 | 0 | 0 | ||
| Net result | −946 | −36 | −1,093 | −261 | ||
| Key figures | ||||||
| Total administrative expenses | 107 | 92 | 16.3% | 373 | 347 | 7.4% |
| of which reinsurance business | 2 | 3 | −25.0% | 9 | 13 | −32.5% |
| of which banking business | 56 | 60 | −5.8% | 206 | 214 | −4.0% |
| of which corporate/holding | 49 | 29 | 65.7% | 158 | 120 | 32.3% |
| Net operating ROE banking business15) | 11.1% | 13.6% | 13.1% | 15.0% |
| In EUR billion | 4Q18 | 3Q18 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Key figures | ||||||
| NN Bank common equity Tier 1 ratio16) | 16.3% | 16.4% | 16.3% | 15.2% | ||
| Total assets banking business | 22 | 22 | 0.3% | 22 | 21 | 1.2% |
| Employees (internal FTEs, end of period) | 2,455 | 2,441 | 0.5% | 2,455 | 2,674 | −8.2% |
The operating result of the segment Other decreased to EUR -20 million from EUR 11 million in the fourth quarter of 2017, due to a lower holding result and lower operating results of the reinsurance and banking businesses.
The holding result decreased to EUR -52 million from EUR -31 million in the fourth quarter of 2017. Holding expenses increased to EUR 49 million from EUR 30 million in the fourth quarter of 2017, reflecting a EUR 10 million nonrecurring item and a revised method for charging head office expenses to the segments, partly compensated by a decrease of administrative expenses.
The operating result of the reinsurance business was EUR 2 million compared with EUR 9 million in the fourth quarter of 2017, mainly reflecting lower underwriting results.
The operating result of the banking business decreased to EUR 28 million from EUR 32 million in the fourth quarter of 2017. This mainly reflects continuing pressure on the interest margin, partly compensated by lower administrative expenses and lower risk costs.
The result before tax of the segment Other decreased to EUR -932 million from EUR -57 million in the fourth quarter of 2017. This decrease was mainly due to the EUR 852 million impairment of goodwill as well as the lower operating result, partly compensated by lower special items related to restructuring expenses.
The full-year 2018 operating result of the segment Other was EUR -33 million compared with EUR 40 million in 2017, which benefited from non-recurring items for a total amount of EUR 32 million. The full-year 2018 operating result includes EUR -44 million of non-recurring items.
The full-year 2018 holding result decreased to EUR -170 million from EUR -150 million in 2017, mainly due to higher holding expenses and lower investment income and fees, partly compensated by lower interest on hybrids and debt following the redemption of EUR 476 million subordinated notes in May 2017 and EUR 575 million senior notes in November 2017. The higher holding expenses mainly reflect EUR 17 million non-recurring items, a revised method for charging head office expenses to the segments and the inclusion of Delta Lloyd from the second quarter of 2017, partly offset by expense reductions.
The full-year 2018 operating result of the reinsurance business was EUR -12 million compared with EUR 43 million in 2017, which benefited from EUR 16 million of non-recurring items. This mainly reflects the EUR 33 million impact of the January storm as well as a EUR 8 million claim from a legacy reinsurance portfolio, partly offset by positive hedge-related result on the VA Europe portfolio.
The full-year 2018 operating result of the banking business increased to EUR 128 million from EUR 124 million in 2017, mainly driven by the inclusion of Delta Lloyd from the second quarter of 2017, lower administrative expenses and lower risk costs, partly offset by a lower interest result.
Other results for 2018 were EUR 21 million, compared with EUR 23 million in 2017, which included a EUR 16 million provision release, while 2018 includes a provision release of EUR 14 million, both related to a legacy entity.
The full-year 2018 result before tax of the segment Other was EUR -1,129 million compared with EUR -306 million in 2017, which included a provision related to ING Australia Holdings, a realised gain on Delta Lloyd shares, a gain on the sale of the equity portfolio for rebalancing the assets of NN Re as well as a gain on the sale of Mandema & Partners. The full-year 2018 result before tax mainly reflects the EUR 852 million impairment of goodwill related to Delta Lloyd Life, a lower operating result of the reinsurance business and higher holding expenses, partly compensated by lower special items related to restructuring expenses.
| In EUR million | 4Q18 | 4Q17 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Analysis of results | ||||||
| Investment margin | −1 | −1 | −2 | −2 | ||
| Fees and premium-based revenues | 5 | 7 | −36.7% | 23 | 39 | −40.8% |
| Technical margin | 0 | 0 | 0 | 0 | ||
| Operating income non-modelled business | 0 | 0 | 0 | 0 | ||
| Operating income | 4 | 7 | −41.0% | 21 | 37 | −43.4% |
| Administrative expenses | 2 | 3 | −29.2% | 9 | 12 | −30.2% |
| DAC amortisation and trail commissions | 1 | 1 | −35.9% | 3 | 5 | −36.1% |
| Expenses | 3 | 4 | −30.9% | 12 | 17 | −31.8% |
| Operating result | 1 | 3 | −55.2% | 9 | 20 | −53.5% |
| Non-operating items | −13 | −6 | −8 | −29 | ||
| of which gains/losses and impairments | 0 | 0 | 0 | 0 | ||
| of which revaluations | 0 | 0 | 0 | 0 | ||
| of which market & other impacts | −13 | −6 | −8 | −29 | ||
| Special items | 0 | 0 | 0 | 0 | ||
| Result on divestments | 0 | 0 | 0 | 0 | ||
| Result before tax | −11 | −3 | 1 | −9 | ||
| Taxation | 3 | −1 | 6 | −2 | ||
| Minority interests | 0 | 0 | 0 | 0 | ||
| Net result | −14 | −2 | −5 | −7 |
| In EUR million | 4Q18 | 3Q18 | Change | FY18 | FY17 | Change |
|---|---|---|---|---|---|---|
| Key figures | ||||||
| Allocated equity10) | 198 | 241 | −17.6% | 198 | 351 | −43.6% |
| Account value | 2,355 | 2,853 | −17.5% | 2,355 | 4,755 | −50.5% |
| Net Amount at Risk | 175 | 38 | 175 | 25 | ||
| IFRS Reserves | 285 | 157 | 81.5% | 285 | 188 | 51.7% |
| Number of policies | 34,436 | 41,224 | −16.5% | 34,436 | 81,808 | −57.9% |
| Employees (internal FTEs) | 39 | 41 | −4.9% | 39 | 46 | −15.2% |
Note: For data in constant currencies, refer to the 'NN Group Financial Supplement: 2.8.1 Analysis of results: Japan Closed block VA – Excluding currency effects'
The result before tax of Japan Closed Block VA was EUR -11 million versus EUR -3 million in the fourth quarter of 2017, reflecting a hedge-related loss and a lower operating result.
The operating result decreased to EUR 1 million from EUR 3 million in the fourth quarter of 2017, as fees and premium-based revenues declined due to the run-off of the portfolio.
Fees and premium-based revenues were EUR 5 million, down 39.0% from the fourth quarter of 2017, excluding currency effects, mainly due to a lower account value reflecting a decreasing number of policies.
Administrative expenses decreased to EUR 2 million.
Market and other impacts were EUR -13 million compared with EUR -6 million in the fourth quarter of 2017, reflecting a hedge-related loss driven by market volatility.
The Net Amount at Risk in the Japan Closed Block VA increased to EUR 175 million from EUR 38 million in the third quarter of 2018 and from EUR 25 million in the fourth quarter of 2017, primarily as a result of equity market movements.
The full-year 2018 result before tax was EUR 1 million compared with EUR -9 million in the same period a year ago, reflecting a lower hedge-related loss, partly offset by a lower operating result.
The full-year 2018 operating result before tax was EUR 9 million compared with EUR 20 million in 2017, mainly due to lower fees and premium-based revenues driven by the run-off of the portfolio.
| in EUR million | 31 Dec 18 | 30 Sep 18 | 31 Dec 1717) | 31 Dec 18 | 30 Sep 18 | 31 Dec 1717) | |
|---|---|---|---|---|---|---|---|
| Assets | Equity and liabilities | ||||||
| Cash and cash equivalents | 8,886 | 8,540 | 9,383 | Shareholders' equity (parent) | 22,850 | 23,014 | 22,718 |
| Financial assets at fair value through profit or loss | Minority interests | 234 | 269 | 317 | |||
| - investments for risk of policyholders | 30,230 | 32,095 | 33,508 | Undated subordinated notes | 1,764 | 1,764 | 1,764 |
| - non-trading derivatives | 5,096 | 4,385 | 5,116 | Total equity | 24,848 | 25,047 | 24,799 |
| - designated as at fair value through profit or loss | 722 | 830 | 934 | Subordinated debt | 2,445 | 2,451 | 2,468 |
| Available-for-sale investments | 104,329 | 104,524 | 104,982 | Debt securities issued | 1,990 | 1,989 | 1,988 |
| Loans | 58,903 | 57,427 | 56,043 | Other borrowed funds | 5,717 | 5,467 | 6,044 |
| Reinsurance contracts | 1,010 | 1,007 | 880 | Insurance and investment contracts | 161,118 | 162,201 | 163,639 |
| Associates and joint ventures | 5,000 | 5,092 | 3,450 | Customer deposits and other funds on deposit | 14,729 | 14,949 | 14,434 |
| Real estate investments | 2,374 | 2,368 | 3,582 | Financial liabilities at fair value through profit or loss | |||
| Property and equipment | 151 | 154 | 150 | - non-trading derivatives | 2,163 | 2,458 | 2,305 |
| Intangible assets | 863 | 1,739 | 1,841 | Deferred tax liabilities | 1,809 | 1,740 | 1,830 |
| Deferred acquisition costs | 1,843 | 1,788 | 1,691 | Other liabilities | 9,427 | 8,490 | 9,555 |
| Deferred tax assets | 131 | 118 | 125 | ||||
| Other assets | 4,708 | 4,725 | 5,377 | Total liabilities | 199,398 | 199,745 | 202,263 |
| Total assets | 224,246 | 224,792 | 227,062 | Total equity and liabilities | 224,246 | 224,792 | 227,062 |
Investments for the risk of policyholders decreased by EUR 1.9 billion in the fourth quarter to EUR 30.2 billion, mainly due to the negative revaluations of equity investments and the run-off of Japan Closed Block VA.
Available for sale investments remain stable at EUR 104.3 billion, the negative revaluations of Equity securities during the quarter and sales of Debt securities were offset by positive currency impacts from the appreciation of the Japanese Yen against the Euro.
Loans increased by EUR 1.5 billion, largely reflecting net investments in mortgages.
Intangible assets decreased by EUR 0.9 billion reflecting the impairment of goodwill for Delta Lloyd Life.
Insurance and investment contracts decreased to EUR 161.1 billion reflecting the aforementioned decrease of investments for risk of policyholders.
Shareholders' equity decreased by EUR 0.2 billion to EUR 22.8 billion, reflecting the fourth quarter 2018 net result and net positive revaluations due to decreased long-term interest rates.
Changes in Shareholders' equity for the current quarter, the full year and the previous full year were as follows:
| in EUR million | 4Q18 | FY18 | FY17 |
|---|---|---|---|
| Shareholders' equity beginning of period | 23,014 | 22,718 | 22,695 |
| Net result for the period | −533 | 1,117 | 2,110 |
| Unrealised revaluations available-for-sale investments and other | 164 | −316 | −545 |
| Realised gains/losses transferred to the profit and loss account | −157 | −823 | −963 |
| Change in cash flow hedge reserve | 918 | 793 | −714 |
| Deferred interest crediting to life policyholders | −422 | −38 | 598 |
| Share of other comprehensive income of associates and joint ventures | 1 | 1 | −1 |
| Exchange rate differences | 92 | 93 | −163 |
| Remeasurement of the net defined benefit asset/liability | −7 | 0 | −3 |
| Capital contributions and change in share capital | 0 | 0 | 420 |
| Dividend | 0 | −332 | −317 |
| Purchase/sale treasury shares | −147 | −231 | −340 |
| Employee stock option & share plans | 3 | 2 | 0 |
| Coupon on undated subordinated notes | 0 | −58 | −59 |
| Termination warrant agreement | −76 | −76 | |
| Total changes | −164 | 132 | 23 |
| Shareholders' equity end of period | 22,850 | 22,850 | 22,718 |
The composition of Total equity at the end of the current quarter, at the end of the previous quarter and at the end of the previous year was as follows:
| in EUR million | 31 Dec 18 | 30 Sep 18 | 31 Dec 17 |
|---|---|---|---|
| Share capital | 41 | 41 | 41 |
| Share premium | 12,572 | 12,572 | 12,572 |
| Revaluation reserve available-for-sale investments and other | 3,684 | 4,107 | 4,876 |
| Cash flow hedge reserve | 4,514 | 3,596 | 3,721 |
| Currency translation reserve | −34 | −134 | −139 |
| Net defined benefit asset/liability remeasurement reserve | −106 | −99 | −106 |
| Retained earnings and other reserves | 2,179 | 2,931 | 1,753 |
| Shareholders' equity (parent) | 22,850 | 23,014 | 22,718 |
| Minority interests | 234 | 269 | 317 |
| Undated subordinated notes | 1,764 | 1,764 | 1,764 |
| Total equity | 24,848 | 25,047 | 24,799 |
| Shareholders' equity per share in EUR | 68 | 68 | 68 |
| in EUR million | 31 Dec 18 | 30 Sep 18 | 31 Dec 17 |
|---|---|---|---|
| Basic Own Funds | 18,100 | 18,965 | 17,121 |
| Non-available Own Funds | 1,373 | 1,482 | 1,339 |
| Non-eligible Own Funds | 0 | 0 | 370 |
| Eligible Own Funds (a) | 16,727 | 17,483 | 15,412 |
| of which Tier 1 Unrestricted | 10,513 | 11,228 | 8,935 |
| of which Tier 1 Restricted | 1,895 | 1,854 | 1,885 |
| of which Tier 2 | 2,433 | 2,377 | 2,420 |
| of which Tier 3 | 755 | 933 | 1,085 |
| of which non-solvency II regulated entities | 1,132 | 1,091 | 1,087 |
| Solvency Capital Requirements (b) | 7,274 | 7,304 | 7,731 |
| of which non-solvency II regulated entities | 507 | 495 | 501 |
| NN Group Solvency II ratio (a/b)2) | 230% | 239% | 199% |
| NN Life Solvency II ratio2) | 255% | 253% | 217% |
| Delta Lloyd Life Solvency II ratio2) | 180% | 202% | 153% |
The NN Group Solvency II ratio decreased to 230% at the end of the fourth quarter of 2018 from 239% at the end of the third quarter of 2018, mainly driven by changes in the corporate tax rate in the Netherlands, the deduction of the proposed 2018 final dividend and the impact of the termination of the warrant agreement with ING Groep, partly offset by the expansion of the Partial Internal Model. The positive impact of operating capital generation was offset by negative equity revaluations. The proposed 2018 final dividend and the termination of the warrant agreement had an impact of -7%-points on the ratio.
The NN Life Solvency II ratio was broadly stable at 255% at the end of the fourth quarter of 2018 versus 253% at the end of the third quarter of 2018. This reflects the positive impact from operating capital generation as well as model and assumption changes, including the expansion of the Partial Internal Model. These items were offset by negative equity revaluations, changes in the corporate tax rate and a EUR 175 million dividend payment to the holding company.
The Delta Lloyd Life Solvency II ratio decreased to 180% at the end of the fourth quarter of 2018 from 202% at the end of the third quarter of 2018. The decrease was mainly driven by the changes in the corporate tax rate and model and assumption changes, partly offset by operating capital generation. The impact of the Partial Internal Model expansion was offset by the loss of the longevity hedge benefit in the Solvency Capital Requirement.
| in EUR million | 4Q18 | FY18 |
|---|---|---|
| Beginning of period | 1,899 | 1,434 |
| Cash divestment proceeds | 0 | 0 |
| Dividends from subsidiaries18) | 463 | 1,593 |
| Capital injections into subsidiaries19) | −55 | −78 |
| Other20) | −79 | −298 |
| Free cash flow to the holding21) | 329 | 1,216 |
| Acquisitions | 0 | 0 |
| Capital flow from / (to) shareholders | −223 | −645 |
| Increase / (decrease) in debt and loans | 0 | 0 |
| End of period | 2,005 | 2,005 |
| Note: cash capital is defined as net current assets available at the holding company |
The cash capital position at the holding company increased to EUR 2,005 million at the end of the fourth quarter of 2018 from EUR 1,899 million at the end of the third quarter of 2018. The increase was driven by EUR 463 million of dividends from subsidiaries, partly offset by shares repurchased in the fourth quarter of 2018 for an amount of EUR 147 million and the impact of the termination of the warrant agreement with ING Groep of EUR 76 million (both reflected in capital flow to shareholders) as well as capital injections into subsidiaries of EUR 55 million. The line 'Other' in the free cash flow to the holding includes holding company expenses, interest on loans and debt, and other holding company cash flows for an amount of EUR -79 million.
| in EUR million | 31 Dec 18 | 30 Sep 18 | 31 Dec 17 |
|---|---|---|---|
| Shareholders' equity | 22,850 | 23,014 | 22,718 |
| Adjustment for revaluation reserves22) | −7,097 | −6,067 | −6,976 |
| Minority interests | 234 | 269 | 317 |
| Capital base for financial leverage (a)23) | 15,988 | 17,217 | 16,060 |
| Undated subordinated notes24) | 1,764 | 1,764 | 1,764 |
| Subordinated debt | 2,445 | 2,451 | 2,468 |
| Total subordinated debt | 4,209 | 4,215 | 4,231 |
| Debt securities issued (financial leverage) | 1,990 | 1,989 | 1,988 |
| Financial leverage (b) | 6,199 | 6,204 | 6,219 |
| Debt securities issued (operational leverage) | 0 | 0 | 0 |
| Total debt | 6,199 | 6,204 | 6,219 |
| Financial leverage ratio (b/(a+b)) | 27.9% | 26.5% | 27.9% |
| Fixed-cost coverage ratio24)25) | 13.8x | 14.7x | 13.5x |
The financial leverage ratio of NN Group increased to 27.9% at the end of the fourth quarter of 2018 compared with 26.5% at the end of the third quarter of 2018. This reflects a decrease of the capital base for financial leverage driven by the fourth-quarter net result of EUR -533 million which includes the impairment of the goodwill for Delta Lloyd Life of EUR 852 million, negative revaluations of equity investments, capital flows to shareholders and the impact of the termination of the warrant agreement with ING Groep.
The fixed-cost coverage ratio decreased to 13.8x at the end of the fourth quarter of 2018 from 14.7x at the end of the third quarter of 2018 (on a last 12-months basis).
As part of the legal restructuring process, legal mergers were executed of Delta Lloyd Levensverzekering N.V. (Delta Lloyd Life) into Nationale-Nederlanden Levensverzekering Maatschappij N.V. (NN Life) and Delta Lloyd Schadeverzekering N.V. (Delta Lloyd Non-life) into Nationale-Nederlanden Schadeverzekering Maatschappij N.V. (NN Non-life). The legal mergers became effective on 1 January 2019. As a result, NN Non-life has assumed all assets and liabilities of Delta Lloyd Non-life, and NN Life has assumed all assets and liabilities of Delta Lloyd Life, including the subordinated notes of EUR 500 million.
At the Annual General Meeting on 29 May 2019, a final dividend will be proposed of EUR 1.24 per ordinary share, or approximately EUR 415 million in total based on the current number of outstanding shares (net of treasury shares). Together with the 2018 interim dividend of EUR 0.66 per ordinary share paid in September 2018, NN Group's total dividend over 2018 will be EUR 637 million, or EUR 1.90 per ordinary share which is equivalent to a dividend pay-out ratio of 50% of NN Group's full-year 2018 net operating result of ongoing business. The final dividend will be paid in cash, after deduction of withholding tax if applicable, or ordinary shares from the share premium reserve at the election of the shareholder. To neutralise the dilutive effect of the stock dividend, NN Group will repurchase ordinary shares for an amount equivalent to the stock dividend. If the proposed dividend is approved by the shareholders, NN Group ordinary shares will be quoted ex-dividend on 31 May 2019. The record date for the dividend will be 3 June 2019. The election period will run from 4 June up to and including 18 June 2019. The stock fraction for the stock dividend will be based on the volume weighted average price of NN Group ordinary shares on Euronext Amsterdam for the five trading days from 12 June through 18 June 2019. The dividend will be payable on 25 June 2019. For more information: www.nn-group.com/Investors.
NN Group announced today that it will execute an open market share buyback programme for an amount up to EUR 500 million over 12 months, anticipated to commence on 1 March 2019. NN Group intends to cancel all of the shares acquired under the programme. The share buyback will be deducted in full from Solvency II Own Funds in the first quarter of 2019 and is estimated to reduce NN Group's Solvency II ratio by 7%-points. In addition to the share buyback programme announced today, NN Group intends to repurchase shares to neutralise the dilutive effect of any stock dividends in line with its dividend policy.
The share buyback programme will be executed within the limitations of the existing authority granted by the General Meeting on 31 May 2018 and such authority to be granted by the General Meeting on 29 May 2019. The shares will be repurchased at a price that does not exceed the last independent trade or the highest current independent bid on the relevant trading platform. The programme will be executed by financial intermediaries and will be performed in compliance with the safe harbour provisions for share buybacks.
NN Group will report on the progress of the share buyback programme on its corporate website on a weekly basis (www.nn-group.com/Investors). The execution of the share buyback programme is subject to NN Group maintaining a robust capital position and overall financial flexibility. NN Group will continue to explore options for deploying excess capital for value creating corporate opportunities, in line with its dividend policy.
Following payment of the 2017 final dividend and the 2018 interim dividend, NN Group announced that it would repurchase ordinary shares for a total amount of EUR 237 million, equivalent to the value of the stock dividends. These share buybacks were executed by financial intermediaries under an open market share buyback programme, which was completed on 21 December 2018. In the fourth quarter of 2018, shares for an amount of EUR 147 million were repurchased.
The share buyback programme was executed within the limitations of the existing authority granted by the General Meeting on 31 May 2018 and performed in compliance with the safe harbour provisions for share buybacks. The shares were repurchased at a price that does not exceed the last independent trade or the highest current independent bid on Euronext Amsterdam. NN Group intends to cancel all of the shares acquired under the programme. For more information: www.nn-group.com/Investors.
The total number of NN Group shares outstanding (net of 6,553,395 treasury shares) on 8 February 2019 was 334,505,676.
The Executive Board of NN Group has decided to cancel 5,850,000 treasury shares representing shares NN Group repurchased as part of the share buyback programme which was completed in December 2018. This cancellation is subject to a two-month creditor opposition period which will end on 28 March 2019.
On 2 January 2019, following the legal mergers of Delta Lloyd Life into NN Life and Delta Lloyd Non-life into NN Nonlife, Standard & Poor's rated the NN Life and NN Non-life entities at 'A' with a stable outlook while the EUR 500 million subordinated notes assumed by NN Life from Delta Lloyd Life retained the BBB+ rating.
| Credit ratings of NN Group on 13 February 2019 | Financial Strength Rating | NN Group N.V. Counterparty Credit Rating |
|---|---|---|
| Standard & Poor's | A | BBB+ |
| Stable | Stable | |
| Fitch | A+ | A |
| Stable | Stable |
NN Group is an international financial services company, active in 18 countries, with a strong presence in a number of European countries and Japan. With all its employees, the Group provides retirement services, pensions, insurance, investments and banking to approximately 17 million customers. NN Group includes Nationale-Nederlanden, NN, Delta Lloyd, NN Investment Partners, ABN AMRO Insurance, Movir, AZL, BeFrank and OHRA. NN Group is listed on Euronext Amsterdam (NN).
Lard Friese and Delfin Rueda will host an analyst and investor conference call to discuss the 4Q18 results at 10.30 am CET on Thursday 14 February 2019. 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/Investors.
Lard Friese and Delfin Rueda will host a press call to discuss the 4Q18 results, which will be held at 07.45 am CET on Thursday 14 February 2019. Journalists can join the press call at +31 20 531 5863 (NL).
Media Relations +31 70 513 1918 [email protected]
• Publication 3Q19 results: 14 November 2019
Investor Relations +31 88 663 5464 [email protected]
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 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 accounts for the period ended 30 September 2018. The Annual Accounts for 2018 are in progress and may be subject to adjustments from subsequent events.
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.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.