NN Group reports 1Q16 results

GlobeNewswire

Operating result stable; strong capital position

· Operating result ongoing business of EUR 305 million, stable on 1Q15, as higher dividends at Netherlands Life and improved results at NN Bank were offset by lower results at Netherlands Non-life, Insurance Europe and Asset Management
· Net result of EUR 270 million, down from EUR 485 million in 1Q15, which included a capital gain on an equity investment while 1Q16 reflects a negative result for Japan Closed Block VA due to higher market volatility
· Cost savings in the Netherlands of EUR 11 million in 1Q16, bringing the expense base down to EUR 792 million
· Strong capital position; Solvency II ratio at 241% at 1Q16 versus 239% at 4Q15
· Holding company cash capital increased to EUR 2.1 billion reflecting dividends from subsidiaries of EUR 390 million partly offset by the EUR 250 million share buyback
· Share buyback programme up to EUR 500 million over 12 months commencing 1 June 2016

Statement of Lard Friese, CEO

`We are pleased with our strong capital position, with a Solvency II ratio of 241% and robust free cash flow to the holding in the first quarter of 2016, especially given the volatile market conditions in the first few months of the year.

While the group operating result for the first quarter of 2016 was stable on the same quarter in 2015, the operating performance of the individual segments showed a mixed picture. Netherlands Life reported higher results supported by continued strong investment performance, and the results of NN Bank improved on the back of the continued growth of the mortgage portfolio and customer deposits. Our international businesses continued to grow their fees and premium-based revenues, which were offset by the impact of the low interest rate environment and equity market depreciation. The non-life and asset management businesses continue to have our full attention. The results of the non-life business have been quite volatile and were impacted by an unfavourable claims experience in the Individual disability portfolio in the first quarter. We continue to implement our management actions aimed at improving underwriting performance and efficiency. In response to the challenging environment, NN Investment Partners is enhancing its strategic focus as announced at the end of last year. The asset manager aims to attract third-party assets by focusing on its areas of expertise, rationalising its product range and improving the efficiency of its operations. In the first quarter of 2016, the asset manager won several Lipper Group Awards recognising the success of its Multi-Asset strategy and Emerging Markets Debt funds. Our cost reductions in the Netherlands are on track to achieve the target expense base set out for 2018, and in the first quarter we realised EUR 11 million in cost savings.

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