NN Group adopts a combined reporting strategy, which enables us to tailor our reporting for different stakeholder groups – customers, employees, shareholders, business partners and society at large 2014 Annual Review This is our top level communication aimed at all of NN Group’s stakeholders, including customers, shareholders and employees. It is a concise report that provides key information about our strategy, the performance of our business and the statement of our CEO.
2014 Financial Report This report covers NN Group’s financial results, our approach to risk management, capital management and corporate governance, as well as the report of our Supervisory Board. Target audiences for this report are shareholders, rating agencies and other stakeholders interested in the financials and governance of NN Group.
2014 Sustainability Report This report outlines our strategy, objectives and achievements related to the social, ethical and environmental aspects of our business. The report follows the Global Reporting Initiative’s (GRI) G4 guidelines. It is aimed at all stakeholders of NN Group and, more specifically, customers, employees, shareholders, rating agencies and NGOs.
At a glance 02 − Financial highlights 2014 − Operational highlights 2014 − Non-financial and sustainability highlights 2014
− Our business segmentation − Our operations − Our products and services − Our employees − Our customers − Our purpose and values − Our company in numbers (at 31 December 2014)
Financial developments − NN Group − Netherlands Life − Netherlands Non-life − Insurance Europe − Japan Life − Investment Management − Other − Japan Closed Block VA
Consolidated annual accounts − Consolidated balance sheet − Consolidated profit and loss account − Consolidated statement of comprehensive income
− Consolidated statement of cash flows − Consolidated statement of changes in equity
− Risk management (Note 56) − Capital and liquidity management (Note 57)
Other information − Independent auditor’s report − Proposed appropriation of result − Subsequent events
− ESG integration − Active ownership − Specialised SRI funds and responsible investment solutions
Our roots lie in the Netherlands with a rich history that stretches back more than 170 years.
NN Group includes Nationale-Nederlanden, ING Insurance Europe, ING Investment Management and ING Life Japan.
In 2015, all businesses will be rebranded to carry our new NN brand.
• Combined ratio for Netherlands Non-life improved to 99.4% from 101.5% in 2013 • Gradual shift to invest in higher-yielding assets in Netherlands Life, such as mortgages and loans • Moved business mix towards more protection products in Insurance Europe • Expanded the bancassurance channel in Japan, recruiting 16 new bank distribution partners • Successful Initial Public Offering (IPO) • Business ready to be rebranded from ING to NN in 2015
• Multiple new products and services to fulfil our promise to deliver an excellent customer experience
1. The Netherlands 2. Japan 3. Belgium 4. Spain 5. Poland 6. Greece 7. Hungary 8. The Czech Republic 9. Romania 10. The Slovak Republic 11. Turkey 12. Luxembourg 13. Bulgaria
Percentages based on operating result ongoing business of EUR 1,216m (total operating result ongoing business of EUR 1,086m excluding segment Other EUR -130m).
NN Group offers a comprehensive range of retirement services, insurance, investment and banking products.
Insurance NN Group’s insurance offering spans life insurance and non-life insurance. Life insurance encompasses primarily group pension products and individual life insurance. Non-life ranges from insurance for motor vehicles, transport, fire, income protection and accident and liability insurance. NN Group also offers health insurance in Greece and corporate owned life insurance (COLI) to SMEs in Japan.
R espect each other and the w orld w e live in
More than countries in which we operate €20.4bn Shareholders’ equity €8.7bn Market capitalisation as at 31 December 2014
To earn the continued trust of our customers, we have to live the right values, deliver products that meet their demands, and be clear and transparent about what we offer
My Management Board colleagues and I are firmly committed to successfully steering the company in a world where the status quo is not an option. We will keep a sharp eye on our strategic direction in the coming years, and remain focused on executing our strategy to create value for all our stakeholders.
Our customers front and centre Among all the changes over the last year, one thing remained unchanged: our customers are at the heart of what we do. Our strategy is to deliver an excellent customer experience by offering products and services that serve customers’ lifetime needs, and by having a multi-access distribution network available to customers wherever required. To deliver against our strategic objectives, we strive to build and maintain effective and efficient operations. We realise that we need to live the right values, deliver the right products and be clear and transparent about what we offer to maintain the trust of our customers. This customer centric approach is reflected in our brand promise: You matter.
In 2014, we continued to launch suitable products and received recognition for our service and expertise. Let me give you some examples. In the Netherlands Fairzekering was introduced. This car insurance product offers customers a premium discount of up to 35% in line with improvement in their driving behaviour, which is measured by a telematics device installed in their vehicle. This product has received multiple awards in the Netherlands.
In recognition of our investment capabilities, the European Central Bank appointed our investment management business as one of the four parties to execute its Asset-Backed Securities Purchase Programme. In Japan our life business expanded its distribution platform with 16 new bank distribution partners in line with our multichannel strategy.
For more information about our strategy see Annual Review, page 10.
Strategic focus areas • Transparent products and services • Multi-access distribution network • Effective and efficient operations • Strong balance sheet
Non-life down to 99.4% • Gradual shift to higher-yielding assets in Netherlands Life • Shifted toward more protection products in Insurance Europe • Expanded bancassurance channel in Japan • Successful Initial Public Offering (IPO) • Businesses ready to rebrand from
We have made a good start, but we recognise that more is needed. We have communicated clear financial targets that we believe will drive the returns of our company going forward.
Committed to society Being a standalone company brings a lot of opportunity, and it also comes with responsibilities. Our role in society and our approach to sustainability is something we take very seriously. We are committed to improving people’s financial well-being, and to responsibly managing the assets entrusted to us by our customers as well as our own assets. With every business decision – from risk management to procurement or human resources – we consider the impact on our long-term sustainability and the world we work and live in.
2015 onwards NN Group is well placed for a successful future as we head into 2015. We have a robust balance sheet and capital position and are well prepared for Solvency II. This gives us the confidence to focus our attention on improving our operating performance over time.
In the mature life insurance market in the Netherlands, we have a relentless focus on customer service and operational efficiency. In specific areas – pensions, banking and non-life – we selectively capture growth opportunities. NN Group is well placed, enhanced by the prominence of our brand.
Although we are at the beginning of our journey as an independent company, we are pleased with the strong performance and progress we have made so far in delivering on our strategic objectives.
Looking back, 2014 was an eventful journey and we have achieved an incredible amount. Our teams have done it. Together we are NN Group.
Nationale Levensverzekering-Bank N.V. (“Nationale”) opens for business. Nationale specialises in life insurance with a focus on the Dutch domestic market. In 1916, Nationale adds non-life insurance to its product portfolio.
Nationale-Nederlanden merges with NMB Postbank Groep to form Internationale Nederlanden Groep, better known as ING. ING develops into a leading international financial services company through a mixture of organic growth and acquisitions.
2008–2009 During the financial crisis, ING receives aid from the Dutch state. As a condition of receiving approval from the European Commission (EC) for state aid, ING is required to restructure the company, including the divestment of its global insurance and investment management business.
ING’s insurance and investment management businesses are operationally separated from ING’s banking operations, setting the stage for NN Group’s standalone future.
In the Netherlands our insurance business will keep the Nationale-Nederlanden name while the logo is updated to align with the new NN brand.
Helping people secure their financial futures and delivering an excellent customer experience
Since 2008, the insurance industry has experienced a number of powerful market forces that have caused providers, including NN Group, to rethink and adapt their business strategy.
From a distribution point of view we continue to strengthen our existing multi-distribution capabilities with new technology. This helps us improve customer experience by providing customers with better access to our products and services.
New economic reality and changing demographics Weak macroeconomic conditions in recent years have led to slow economic growth and low interest rates. In general, low interest rates affect investment yields which squeeze product margins for insurance companies.
While they present challenges, an ageing population and people living longer also present opportunities for insurers as they create demand for retirement products and other investment vehicles.
Low trust drives demand for transparency Following turmoil in the financial markets, customers are demanding improved transparency and simpler products.
The need to rebuild trust has become increasingly apparent for financial services companies. This is leading them to improve their transparency and engagement with customers.
Effective management in a tough environment The weak economic climate and low interest rates are a challenge for NN Group. Adequate measures have been taken to mitigate risks related to the low interest rates. In general, to limit interest rate risk, NN Group hedges exposure by investing in long-term bonds matching liability maturities.
NN Group reduces the impact of an ageing population and increasing life expectancy by diversifying our business, covering multiple geographies and offering contracts of different length. We have also adjusted our pricing and product mix and at the same time the shift from defined benefits to defined contribution pension products has helped us cope with these trends.
For more information on our approach to risk management, see Note 56 in the Consolidated annual accounts.
Setting an example to win back trust NN Group recognises that it is important to play a role in winning back trust in the financial sector.
Leveraging new technology Advances in social connectivity have created a new world of opportunity for many industries. The internet is providing alternative distribution channels which allow insurance providers and investment managers to connect and interact differently with customers.
Capitalising on our strong positions NN Group is in a strong position to capitalise on increasing insurance penetration in CEE. When economic growth picks up we are well positioned with our products and distribution platforms to capitalise on this. With our substantial market shares and experience gained from establishing greenfield operations in CEE, we expect to benefit from these market developments.
Ensuring alignment with new regulation NN Group actively monitors regulatory developments, both on a national and international level. We have adopted a comprehensive set of policies and processes that allow us to align our practices and comply with new laws and regulations.
We focus on four areas that will allow us to deliver on the promises we make to our customers. We offer transparent products and services that serve customers’ lifetime needs. We do this by having a multi-access distribution network. This is backed by effective and efficient operations that deliver excellent customer service. Since our customers entrust their money with us, it is important we maintain a healthy financial position.
Effective and efficient operations NN Group aims to make processes as efficient and effective as possible to deliver value for money for our customers. As well as implementing an operating model with more standardised processes, we are simplifying and improving our IT infrastructure. We are also developing our customer intelligence skills, so that we can take a more holistic view of our customers and, ultimately, service them better.
Our corporate citizenship agenda focuses on two key areas that are closest to our core business and where we believe we can make the most impact: improving people’s financial well-being and responsibly managing our assets.
Responsibly managing our assets NN Group is a long-term global institutional investor with a duty to act in the best interest of our policyholders, customers, shareholders and other stakeholders. To fulfil this duty, we acknowledge the importance of integrating environmental, social and governance (ESG) factors into our investment policies, processes and decision making. Considering ESG factors helps to identify the risks and opportunities that can impact long-term investment return. It also ensures that we live up to our values and demonstrates good corporate citizenship. NN Group supports good governance and seeks to enhance the social and environmental practices of the companies we invest in through active ownership. By offering specialised socially responsible investment (SRI) funds and sustainable investment solutions, we aim to meet our customers’ growing interest in responsible investments.
For a detailed explanation of NN Group’s approach to sustainability and our progress in 2014, see Sustainability Report.
We measure the success of our company both in terms of our financial and non-financial performance. Therefore we set financial and operational, as well as non-financial and sustainability objectives.
• Capture profitable opportunities to grow our business by leveraging our well established presence in growth oriented segments in Europe and Japan.
• Improve the productivity of distribution platforms and drive operational improvement through disciplined cost management at Investment Management.
• Invest in a responsible manner by integrating environmental, social and governance (ESG) factors in the investment process.
• Minimise our environmental footprint by reducing the use of natural resources and seeking green alternatives.
Looking back on 2014, NN Group has taken a step forward in delivering on our financial, operational and non-financial objectives. But there is further to go.
For more information about NN Group’s board structure, see Financial Report.
Stan Beckers was appointed to NN Group’s Management Board as chief executive officer (CEO) ING Investment Management on 7 July 2014. Stan is responsible for NN Group’s investment management business. He brings 30 years’ experience in the financial services industry, most recently with BlackRock. He has held leadership positions at Barra, Kedge Capital, Alpha Management Group, Barclays Global Investors, several pension funds, and KAS Bank.
Dorothee van Vredenburch was appointed NN Group’s chief change and organisation (CCO) and a member of our Management Board on 7 July 2014. From October 2013 Dorothee was ING Insurance’s CCO and a member of its management board. Dorothee brings 25 years’ experience in the financial services industry, most recently with ING Group. Previously she held leadership positions at Citigate Europe and RedZebra Group.
David Knibbe was appointed to NN Group’s Management Board on 7 July 2014. On 1 September 2014, he was named chief executive officer (CEO) of NN Group’s insurance business in the Netherlands. He is also responsible for the company’s global IT operations. From 1 January 2011 until 1 September 2014, David served as CEO of ING Insurance Europe. He brings 17 years’ experience in the financial services industry. He held leadership positions at ING Bank, ING Piraeus, NationaleNederlanden and ING Investment Management.
Doug Caldwell was appointed NN Group’s chief risk officer (CRO) and a member of our Management Board on 7 July 2014. From October 2013 he was ING Insurance’s CRO and a member of its management board. Doug brings 23 years’ experience in the financial services industry, most recently with ING Insurance Asia Pacific. Previously he held leadership positions at ING Re, ING Group and ING Insurance US.
NN Group has a Management Board that is entrusted with the day-to-day management and the overall strategic direction of the company. NN Group has a two-tier board structure, consisting of an Executive Board under supervision of a Supervisory Board.
Netherlands Life is organised by pension products and the individual life closed block. The pension product line provides group life and pension products to small and medium enterprises (SME) and to large corporate clients and their employees. The individual life closed block primarily consists of individual life portfolios comprising a range of discontinued products sold prior to 2012. In addition, a limited range of individual life insurance products are actively offered to retail customers. AZL, a full service pension administration provider, is also part of Netherlands Life.
Financial highlights The operating result of Netherlands Life for 2014 declined by 13.3% to EUR 615 million. This was mainly due to a lower technical margin and lower fees and premium-based revenues, partly compensated by a higher investment margin and lower administrative expenses. Administrative expenses decreased by 3.2% to EUR 457 million as a result of the ongoing transformation programme in the Netherlands. The result before tax improved by 8.6% to EUR 377 million. Non-operating items
Netherlands Life developed a pension application Mijn Pensioencoach in 2014. The mobile app allows customers to get real-time information about their pension on their smartphone.
In realising our strategic objectives, Netherlands Life works closely with other operating entities within NN Group. Investment Management provides in-house expertise to manage assets for the general account, as well as for the defined contribution-based pension products.
Business developments Netherlands Life operated in a complex economic, business and regulatory environment in 2014. The Dutch government continued to drive pension reforms aimed at keeping the country’s pension system on a long-term sustainable footing. Low interest rates and increasing longevity have increased employers’ funding costs for pension schemes. This environment has encouraged a shift from defined benefit (DB) to defined contribution (DC) pension schemes.
Netherlands Life took steps to improve product distribution by opening new channels that aim to better service customers and increase cooperation with external partners. We launched an online employee benefits platform (Benefits Plaza), linked to the NN Group back office, which allows employers to automate the processing of employee pension data.
Netherlands Life continued to work closely with our intermediary partners in 2014. Specialised pension advisors and international advisory firms continued to play an increasingly important role in our distribution strategy. In pensions, distribution via this type of intermediary partners accounted for 66% of our premium income in 2014, compared to 59% in 2013.
Netherlands Life also continued to strengthen our position as a selective provider of insurance solutions for a number of smaller Dutch pension funds that are liquidating. For example, Dutch cement producer ENCI transferred its pension obligations to Netherlands Life in 2015.
Financial highlights The operating result of Netherlands Non-life for 2014 increased by 62% to EUR 128 million. This was driven by an 11.4% decrease in administrative expenses to EUR 294 million as a result of the ongoing transformation programme in the
Property & Casualty • Motor insurance • Fire insurance • Liability insurance • Transport insurance • Travel insurance
Netherlands Non-life implemented initiatives in 2014 designed to improve the quality of our products and services, streamline operations and generate higher levels of customer satisfaction. We also continued our focus on improving processes with a higher level of automation and straight-through processing – allowing more transactions to be completed without manual intervention.
Our investment in IT has allowed us to enhance customer experience, handle more business processes electronically and reduce cost.
In 2014 Fairzekering, a collaboration between an intermediary, a technology provider and Netherlands Non-life, received recognition for its innovative car insurance offering which uses telematics to help drivers improve their driving behaviour, reduce the risk of damage and earn a discount on their premium. Fairzekering’s policies are underwritten by Netherlands Non-life. Netherlands Non-life was awarded the Keurmerk Klantgericht Verzekeren, by independent industry body Stichting Toetsing Verzekeraars, for our improvement in customer service. Almost 150 communication materials were rewritten to make them more clear and easier to understand for customers. MoneyView, a leading Dutch research agency in the financial services industry, awarded Netherlands Non-life for the quality and price of our legal aid product, and for the quality of our annual multi-trip travel insurance.
Netherlands Non-life introduced the Claims manager at home in February 2014. This service sees a claims manager come to a customer’s home and help them navigate through the stress of, for example, a fire or a burglary by taking care of the entire claims handling process and acting as a single point of contact for the customer.
Many customers have expressed a need for personal help in coordinating their claims in such difficult circumstances. Practical support as well as personal care and attention is an essential aspect of this NN Group service. Speed, know-how and empathy are key and internal research conducted by NN Group has shown this service boosts customer satisfaction.
Deliver an excellent customer experience by reducing complexity and further improving service quality
Insurance Europe primarily offers life insurance and pension products to retail, self-employed and SME customers. In Belgium and Spain we also offer non-life insurance products and health insurance in Greece. The countries in which Insurance Europe is active are a mixture of mature and growth markets.
Financial highlights The operating result of Insurance Europe for 2014 declined by 11.6% to EUR 176 million. The lower investment margin and the impact of the pension reforms in Poland were only partly compensated by higher fees and premium-based revenues. The result before tax decreased by 14.8% to EUR 207 million, reflecting the lower operating result and higher special items.
New sales (APE) increased by 7.7%, excluding currency effects, to EUR 528 million, driven by higher life sales. The value of new business for 2014 declined by 18.8% to EUR 78 million, reflecting the impact from refinements to persistency assumptions and expense overruns in Turkey, a non-recurring commission overrun in Poland, lower interest rates and currency impacts. These impacts were partially offset by higher volumes and improved quality of sales, reflecting repricing actions, commission changes and a better business mix. The internal rate of return (IRR) on new sales correspondingly decreased to 9.3% in 2014 from 9.7% in 2013.
Our insurance business across Europe continued to push innovation in 2014 by developing and bringing to market products that offer social as well as financial benefits for customers. In Poland, NN Group continues to promote cancer prevention. As well as covering financial risks with our cancer cover product, we aim to educate people about how to prevent cancer by sponsoring free mammography for women and launching a new mobile application to make breast self-examination simple and effective.
During 2014, Insurance Europe’s customer focus was awarded in several countries.
• In Poland, we were recognised as the Most Friendly Life Insurance Company by trade publication Gazeta Bankowa.
Strategy Insurance Europe’s strategy is to capitalise on our strong position in Central and Eastern European (CEE) markets that combine economic potential with low life insurance penetration levels. In addition, our aim is to achieve growth by further improving the productivity of our existing distribution platforms, especially tied agents and bancassurance. Operational improvements are expected to come from disciplined cost management. This will allow Insurance Europe to benefit from operating leverage as our customer portfolio expands and will lead to lower unit costs. Management’s aim is to achieve an annual mid-single-digit operating result before tax growth rate on average over the period 2013 to 2018.
Business developments Insurance Europe is making clear progress in delivering an excellent customer experience. In 2014 we successfully introduced new products and saw a shift in our product mix toward protection solutions. We improved customer portals and continued to broaden our distribution base.
New products introduced in 2014 included Motiva in Hungary. The Motiva product line includes unit-linked and endowment products and is designed to meet the need for longer- term savings and protection products.
In line with our ambition to provide customers with multi-access to our services, including direct access, we launched a service portal for life insurance and pension customers in the Czech Republic. This will allow customers to easily make changes to their policies and submit claims requests online or through their mobile phones. A similar portal, also available through mobile devices, was launched in Turkey. In Spain an updated customer self-service portal allows customers to process 90% of all possible transactions online.
In 2014 we also invested significantly in improving our distribution. Based on early pilot successes in Spain and Romania, Insurance Europe continued to roll out a tied agent productivity improvement programme to all countries. Our main focus for bancassurance in 2014 was to build and further expand preferred partnerships. Early in the year we extended distribution agreements with ING Bank in Poland,
Spain, Romania and Turkey. Our focus now is to further unlock the potential of this partnership by improving sales support and customer intelligence, as well as launching new value propositions to customers through this channel.
Direct distribution channel performance continued to improve in the Czech Republic, where it reached 14% share of production in 2014. In the Slovak Republic, NN Group is still the only insurance company offering term life insurance online.
Financial highlights The operating result for Japan Life was EUR 140 million in 2014, a 13.0% decrease compared with EUR 161 million in 2013. Excluding currency effects, the operating result declined by 4.2% due to a decrease in the investment margin as a result of lower reinvestment rates as well as a lower technical margin due to a lower result on surrenders.
New sales (APE) increased by 20.1%, excluding currency effects, to EUR 541 million, due to improved business sentiment, higher agency productivity and channel diversification. The value of new business increased by 8.1% to EUR 93 million, reflecting higher sales partially offset by lower interest rates.
Japan Life’s net promoter score increased from 25% in 2013 to 34% in 2014
Strategy Japan Life’s strategy is to deliver an excellent experience to SMEs and to independent agents and bancassurance partners. In order to achieve operating leverage, we seek to continuously increase the productivity of independent agents. In addition, we aim to achieve channel diversification (expansion of bancassurance), and product diversification (expansion of protection sales) by leveraging existing capabilities.
Business developments In 2014 we expanded our distribution network with the recruitment of 16 new bank distribution partners, contributing to a 70% year-on-year growth in bancassurance sales to SMEs.
This will be achieved by reviewing processes end-to-end for efficiency and effectiveness. Making processes more transparent, and equipping marketing representatives – who provide support to independent agents – with the right data at the right time will improve the quality of consultation they provide to agents.
ING Investment Management is the asset management business of NN Group. We manage the assets of NN Group’s insurance businesses and offer retail and institutional customers a wide variety of actively managed investment products. We also provide advisory services in all major asset classes and investment styles.
Investment Management offers products and services globally through offices across Europe, the United States, the Middle East and Asia, with the Netherlands as our main investment hub. In 2015 ING Investment Management will be rebranded to NN Investment Partners.
Strategy Investment Management’s strategy is to partner with customers to help them meet their investment needs through a set of advice embedded products. We aim to grow the third-party (retail and institutional customer) business by following a tailored approach per client segment. In sizeable markets, such as Germany and the UK, Investment Management aims to continue to leverage established strengths to gain new business. In the retail business in the Netherlands, Poland, Belgium and Luxembourg, Investment Management will further expand our range of products to increase market share.
• Asset management for NN Group • Institutional investor products and services • Retail investor products and services • Advisory services
1 Excluding the Net result from discontinuing operations. 2 End of period, in EUR billion.
Changes in Dutch pension regulation created opportunity for Investment Management to bring new products to market. Investment Management has developed a product to cater to the needs to build retirement income of higher earning individuals, who can no longer benefit from company provided pension schemes on earnings above EUR 100,000.
Business developments In 2014 equity markets remained volatile while fixed income investors continued to be challenged by a low-yield environment. Managing the investments entrusted to us by our client base and servicing them in the best way remained the focus of Investment Management. Growth in our third-party client base in 2014 has been a result of these efforts.
Investment Management continuously monitors and adapts our product range based on clients’ needs and market developments. We reacted to the changing regulatory environment as well as market conditions by introducing new investment propositions that provide our customers with more opportunities to meet their financial objectives.
Focus on growing the third-party business by taking a tailored approach
Investment Management endeavours to constantly strengthen our responsible investment approach. The integration of environmental, social, and governance (ESG) factors in research is at the core of our approach. In 2014, Investment Management partnered with the European Centre for Corporate Engagement (ECCE) at Maastricht University. The aim of the partnership is to develop new insights into the material effect of ESG factors on the value or performance of an investment.
• Mortgages • Bank annuities • Internet savings • Term deposits • Retail investments • Consumer lending • Credit cards
Net result1 -124 -380 1 Includes the result on the sale of SulAmérica. Results of SulAmérica were included in the segment Insurance Other until 2013. The segment Insurance Other ceased to exist as of 2014.
At NN Bank we continued to build our product offering in 2014 with the introduction of a consumer lending product and a Nationale-Nederlanden branded credit card. NN Bank implemented a personal banking environment that provides customers with an online portal where they can view and manage their products. We also introduced important process improvements, for example automation of the mortgage application process based on straightthrough processing.
The technical migration of the former online savings portfolio of WestlandUtrecht Bank to the Nationale-Nederlanden internet savings environment contributed to efficient and effective operations. NN Bank continued to focus on improving customer experience in our channels by developing services that allow customers to select the type of servicing that is most appropriate for them – via the internet, a call centre agent, an NN advisor or an independent broker. Our website traffic increased significantly in 2014 indicating that customers increasingly favour self-directed, execution only services.
ING Re ING Re (to be renamed NN Re in the course of 2015) is NN Group’s internal reinsurer located in the Netherlands. ING Re primarily offers reinsurance to NN Group’s insurance businesses. We manage our risks through ceding excess insurance risk to external reinsurers and hedging a major part of our market risks. ING Re reinsures the minimum guarantee obligations of the Japan Closed Block VA and part of NN Group’s life insurance business in the Czech Republic and Hungary.
In October, Nationale-Nederlanden launched a credit card in partnership with Dutch charity LINDA.foundation. For every transaction made with the card, Nationale-Nederlanden donates 10 eurocents to the foundation. This money goes to help families, with children, in financial distress. One in nine children in the Netherlands lives in poverty. The LINDA.foundation uses the collected money to support the families of these children. Qualifying families receive vouchers for activities aimed at giving their children a care-free moment. The NationaleNederlanden credit card is the first credit card in the Netherlands that offers a near field communication payment option which allows contactless payments.
Approximately 90% of the portfolio is projected to run off by the end of 2019
Japan Closed Block VA comprises NN Group’s closed-block single premium variable annuity (SPVA) individual life insurance portfolio in Japan. This portfolio consists of SPVA products with minimum guarantee obligations sold predominantly from 2001 to 2009.
Managing the portfolio Japan Closed Block VA is focused on improving systems and processes in order to ensure the efficient handling of the maturing portfolio. The first main priority is to continue to enhance risk management activities by ensuring the hedging strategy is recalibrated to match the profile of the run off. The second main priority is to ensure that we fulfil our obligations and provide appropriate service to our policyholders, distributors and fund management partners while finding ways to become more cost efficient.