Operating result of EUR 453 million versus EUR 463 million in 3Q18, mainly due to lower private equity and special dividends at Netherlands Life and a lower result at the reinsurance business, largely offset by higher results at Netherlands Non-life, Insurance Europe, Japan Life and Banking
Net result of EUR 515 million compared with EUR 788 million in 3Q18, mainly reflecting lower non-operating items
Further cost reductions of EUR 17 million in 3Q19, bringing total cost reductions achieved to date to EUR 323 million versus the full-year 2016 administrative expense base
Solvency II ratio of 217% up from 210% at the end of 2Q19, reflecting the positive impact of operating capital generation
Holding company cash capital of EUR 1,943 million, including EUR 285 million of dividends received from subsidiaries
Statement of David Knibbe, CEO
‘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 back at the financial performance of the past quarter, most segments have reported improved results compared with the same quarter last year. Netherlands Non-life showed a good result, with a combined ratio of 94.2%. Insurance Europe, Banking and Japan Life also contributed to the result, while private equity and special dividends at Netherlands Life were lower than a year ago. We have reduced the expense base of the units in scope of the integration by a further EUR 17 million in the third quarter, bringing total cost savings to date to EUR 323 million. We have seen commercial momentum in the Netherlands, including an increased mortgage origination of EUR 2 billion at Banking and strong sales at Insurance Europe. NN IP, our asset manager, achieved inflows of new assets which contributed to bringing the total assets under management to EUR 287 billion. Total new sales of the insurance businesses were down on the third quarter of 2018, due to lower sales at Japan Life following the introduction of the new tax rules for certain COLI products.
NN Group has a strong capital position, as evidenced by a Solvency II ratio of 217% and cash capital at the holding of EUR 1.9 billion.
Customer satisfaction scores remained stable or increased to date this year. NN in the Netherlands has the highest brand consideration and preference score for pensions in the market. We aim to become even more relevant in the lives of our customers and to further improve their experience with our company, by offering them the right products and services that meet their needs and by connecting data analytics across distribution channels and sales points.
We want to play our part in enabling sustainable progress in society. We are proud that NN Group has been included in the Dow Jones Sustainability Indices for the third year in a row, in recognition of our performance on set economic, environmental and social indicators.
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. We are pleased to confirm the date of our Capital Markets Day on 24 June 2020, at which we will provide an update on the strategic and financial developments of NN Group.’
NN Group key figures
In EUR million 3Q19 3Q18 Change 9M19 9M18 Change
Operating result1) 453 463 ?2.2% 1,366 1,283 6.5%
Net result 515 788 ?34.6% 1,633 1,650 ?1.1%
3Q19 2Q19 3Q18
Solvency II ratio2) 217% 210% 239%
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Note: All footnotes are included on page 25