4Q17 operating result of the ongoing business of EUR 345 million, up 22.3% from 4Q16, driven by the contribution of the Delta Lloyd businesses
Full-year 2017 operating result of the ongoing business increased to EUR 1,586 million, up 29.3% from 2016, mainly driven by the contribution of the Delta Lloyd businesses and improved results at most segments, partly offset by lower results at Netherlands Non-life
Net result increased to EUR 700 million from EUR 148 million in 4Q16, mainly driven by higher capital gains and revaluations and the higher operating result. Full-year 2017 net result up 77.5% to EUR 2,110 million
Administrative expense base of the business units in the scope of the cost reduction target decreased by EUR 133 million versus the full-year 2016 base of EUR 2,024 million
Robust commercial momentum: APE at the insurance businesses up 35.1% at constant currencies compared with 4Q16. Full-year 2017 VNB of EUR 345 million, up 60.7% from 2016
Solvency II ratio of 199% at the end of 4Q17, reflects the deduction of the proposed final 2017 dividend
Holding company cash capital lower at EUR 1,434 million, reflecting the repayment of senior notes and the repurchase of own shares, partly offset by dividends received mainly from the Dutch units
Final 2017 dividend proposal of EUR 1.04 per ordinary share, or approximately EUR 348 million in total, bringing the full-year 2017 dividend to EUR 1.66 per ordinary share
Statement of Lard Friese, CEO
‘2017 was a memorable year for NN Group in which we successfully completed the acquisition of Delta Lloyd. We have started the integration in the Netherlands and Belgium creating a leading insurance and pension company, with attractive propositions in asset management and banking. We are making good progress. On 1 January 2018, the first legal mergers of business units were completed, with Delta Lloyd Bank merging into NN Bank, and Delta Lloyd Asset Management merging into NN Investment Partners. Most head-office departments have been integrated, we have started rationalising systems and portfolios, and products are being rebranded from Delta Lloyd to NN.
At our Capital Markets Day on 30 November 2017, we outlined the strategy and new targets for the combined company. One of our top priorities going forward is to deliver on the Delta Lloyd transaction and extract the synergies. In this respect we continue to increase efficiency and have lowered the cost base of the units in scope of the integration by EUR 133 million in 2017 towards our target of EUR 350 million by 2020.
The operating result for 2017 reflects a strong contribution of Delta Lloyd and improved operational performance in businesses such as Netherlands Life, Insurance Europe, Japan Life and the bank. We continue to see volatility in the results of the Non-life business, where an improvement in the P&C business was offset by a deterioration in D&A performance. We are implementing a range of measures to sustainably improve the Non-life performance.
Commercial momentum continues, with new sales up 33.9% at constant currencies and value of new business up 60.7% compared with 2016. NN Investment Partners attracted EUR 5.1 billion of third-party assets in 2017 offset by outflows of affiliated assets, and the mortgage portfolio of the banking business grew to EUR 17.6 billion. Over the last 12 months our client satisfaction again increased in almost all countries where we are active. With our strengthened market positions, we are well placed to capture growth opportunities.
Our Solvency II ratio and cash capital position remain robust, at 199% and EUR 1,434 million respectively, in line with our disciplined approach to managing our capital. We will propose a final 2017 dividend of EUR 1.04 per ordinary share at our Annual General Meeting of Shareholders on 31 May 2018. Together with the interim dividend paid in September 2017, this represents a pay-out ratio of around 45% of the 2017 full-year net operating result of the ongoing business.
Looking ahead, we will maintain our efforts to improve our overall performance, deliver excellent customer service, and further accelerate the transformation of our business through innovation.’
NN Group key figures
|In EUR million||4Q17||4Q16||Change||FY17||FY16||Change|
|Operating result ongoing business1)||345||282||22.3%||1,586||1,227||29.3%|
|Net operating ROE1)9)22)||8.2%||7.2%||10.3%||8.1%|