Nationale-Nederlanden Group reports strong performance in third quarter 2017

Global insurance and asset management company Nationale-Nederlanden Group (NN Group) reported a strong performance for the third quarter of 2017.

The group said that "operating result ongoing business" increased to €431m from €319m during that period, mainly driven by improved results at most segments, the contribution of Delta Lloyd of €51m and €32m non-recurring benefits in the "other" segment, offset by lower results at Netherlands Non-life.

In parallel, its solvency II ratio increased to 204% from 196% in the second quarter of 2017, reflecting operating returns and positive market impacts.

Hence, the company's net result totaled €734m versus €436m in the third quarter of 2016 as holding company cash capital increased to €1.8m, as a result of €332m of dividends received from subsidiaries.

The group also reported ongoing expense reduction at Netherlands Life, Netherlands Non-life, Asset Management, the segment Other and Belgium, of €86m in the first nine months of 2017.

Statement of Lard Friese, CEO, said: "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 €64m in the quarter. Our balance sheet remains robust, with a Solvency II ratio of 204% and cash capital position of €1.8bn. We will redeem €575m 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 €1bn."