Download the pdf Download the pdf www.nn-group.com/annual-report 2014 Annual Review 2014 Financial Report 2014 Sustainability Report
Our strategy 10 − Capitalising on global trends − Market trends, risks and our response − Strategic focus areas − Our role in society − Objectives − Delivering on our strategy
Report of the Executive Board on internal control over financial reporting
Parent company annual accounts − Parent company balance sheet − Parent company profit and loss account − Parent company statement of changes in equity
Sustainability at NN Group − Purpose and values − Pillars of our approach − Focus areas − Governance − What matters to us − Stakeholder engagement − Our objectives
Optimising customer experience − Customer centricity − Customer empowerment − Products with social added value − Customer feedback and loyalty
We are committed to helping people secure their financial futures by offering retirement services, insurance, investment and banking products.
• More effective and efficient operations resulted in a reduction of EUR 142 million in expenses in the Netherlands
• Upgraded digital platforms and mobile applications to give customers easy access to service and their products
• Introduced overarching Responsible Investment Policy Framework to integrate environmental, social and governance (ESG) factors in our investment process
• Sustainable assets under management up by 18% to EUR 4,052 million • Launched NN statement of Living our Values • Launched corporate citizenship programme Future Matters
With a presence across Europe, the U.S. and Asia, ING Investment Management provides clients access to domestic, regional and global investment solutions.
Our main regional investment centres are in The Hague, London, Tokyo,
Retirement services NN Group offers a broad variety of retirement services and products to help people secure their financial futures after retirement. These encompass individual life and group life insurance products, savings and retirement products, including mandatory and voluntary pension fund solutions. In the Netherlands, NN Group provides pension administration and management services to company pension funds and industry-wide pension funds.
Investments NN Group’s investment management business offers actively managed investment products and advisory services to institutional and retail customers in all major asset classes and investment styles.
Banking In the Netherlands, Nationale-Nederlanden offers banking services, such as mortgages, savings products, consumer lending and a credit card for retail customers.
NN Group’s employee base is diverse in nationalities, languages and cultures. NN Group aims to foster an open, safe, inclusive and stimulating work environment for our employees. We believe that qualified and motivated staff are essential in delivering high-quality customer service.
Proposed dividend per ordinary share, related to second half of 2014 15m Customer policies
Our values NN Group’s business centres around people and trust. By acting with professionalism and behaving with integrity and skill, we believe we can build and maintain the confidence of our customers and other stakeholders. We have formulated values to set the standard for behaviour and provide a compass for decision making. These values are: we care, we are clear, we commit.
At 9.00am, 2 July 2014, NN Group opened for trading on the Euronext Amsterdam stock exchange. Returning to the stock market after 23 years. This marked a new beginning that will be built on a rich 170-year history. NN Group’s first annual report is an extensive reflection of who we are, how we operate and our ambitions going forward. It is an honour for me to present it to you.
In the Czech Republic and the Slovak Republic an “improve your lifestyle” campaign was launched offering customers interactive, personalised health evaluation and tips for improving their lifestyle. On customer service, our Polish business continues to be the most customer friendly life insurance company in Poland, according to an industry-leading magazine.
Robust financials We delivered a strong financial performance in 2014. Our operating result of the ongoing businesses improved by 20% to EUR 1,086 million. Our net result improved by 82.6% to EUR 588 million and we had strong new sales growth in all of our life insurance businesses. We generated substantial capital, some of which we reinvested in our business to ensure future capital generation, some of which we propose to
Financial results • Operating result up 20% • Significantly reduced expenses • Strong capital position • New sales up 12.9% at constant currencies • Assets under management up to EUR 186 billion
Operational results • More effective and efficient operations • Combined ratio for Netherlands
Policy Framework • Sustainable assets under management up 18% • Launched NN statement of Living our Values • Launched new corporate citizenship programme Future Matters return to our shareholders, for example, via dividends. We generated EUR 9,334 million of gross premium income and continued to achieve more effective and efficient operations in the Netherlands, resulting in a reduction of EUR 142 million in expenses for the year.
Extraordinary teamwork The success of the Initial Public Offering (IPO) in July put ING Group on schedule in its plan to divest its shareholding in NN Group by the end of 2016, as agreed with the European Commission. For five years, teams from both companies worked hard to realise this moment. It was extraordinary teamwork throughout both organisations.
On our road to becoming a standalone company, our employees worked hard to reach critical milestones. Together we created momentum in all parts of NN Group. The positivity and enthusiasm created, and the sense of a new beginning, is palpable. I want to thank all of NN Group’s more than 12,000 employees for contributing to our 2014 achievements.
Of course, it is important to have the right people in key positions. Therefore, we undertook a thorough review of our talent base to better align the skills of our management with the ambitions of our businesses. Based on their talent and expertise we identified and appointed high-potential leaders to key positions within the company and also hired new talent. More than 40% of our top 150 leadership positions were changed ahead of the IPO.
In 2014, we launched our corporate citizenship programme Future Matters, aimed at enabling people to grow their economic opportunities, overcome financial adversity and realise their financial ambitions.
In Central and Eastern Europe, we believe that we have a solid platform to take advantage of the economic potential and low life insurance penetration levels in the region. In Japan we have well established capabilities in a large niche market that will allow us to grow through further product and channel diversification. Finally, we see good opportunities to grow our asset management business in third-party products, servicing both retail and institutional customers.
De Nederlanden and Nationale merge to form Nationale-Nederlanden. The merger reflects increased consolidation in the insurance industry and enables the companies to remain competitive under changing market circumstances. Nationale-Nederlanden pursues acquisitions throughout the world and starts new operations in Europe and Asia.
De Nederlanden van 1845 N.V. (“De Nederlanden”) commences operations, specialising in fire insurance. The company expands abroad and becomes an all-lines insurance company in 1925.
In February ING reduces its stake in NN Group to 54.6%. Its remaining stake is to be divested completely by year end 2016. As part of this transaction NN Group commits to repurchase 8.3 million ordinary shares from ING Group for EUR 200 million.
NN Group lists at Euronext Amsterdam under the ticker symbol NN. ING Group reduces its ownership of NN Group to 68.1%.
NN Group’s new brand was developed with the aim of balancing our 170-year heritage and Dutch roots, with the requirements of an international insurance and investment management company.
You matter NN Group’s standalone future justifies a new brand strategy that reflects and supports the purpose, values and strategy of the company. In every element of the brand we aim to strike a balance between being clear and strong on the one hand, and personal and warm on the other. The brand adds a clear signature to the customer experience based on servicing with care, offering clarity and guidance, and helping people buy with confidence. We want to be a genuine partner to our customers. What matters to our customers matters to us. That is why we have one clear brand promise: You matter.
In 2015 ING Insurance around the world will be renamed NN – except in Spain and Poland, where the name NationaleNederlanden will be used in combination with our new logo.
ING Investment Management will be renamed NN Investment Partners in all markets. NN Investment Partners will be positioned as a clear member of NN Group, but with an emphasis on its distinct business proposition.
“The rebranding of our business marks another important milestone since we became a standalone listed company in July 2014. It further unites our businesses and employees, and gives our company a clear and recognisable identity. Throughout the rebranding process our customers will continue to be at the heart of everything we do, and it will be business as usual.”
Economic growth is still slow, particularly in the markets where we operate. Interest rates are at a very low level and credit spreads are relatively tight. We see an ageing population living longer both in mature and emerging markets. Penetration of insurance products, both in life and non-life, is relatively stable.
The insurance industry itself is transforming in many ways. Customers demand transparent and easy to understand products. The industry is confronted with new solvency requirements and changing regulations in different markets.
Improving technologies are accelerating the introduction of new distribution channels and blurring the boundaries between insurance, investment management and banking.
Understanding these market and industry trends is crucial in allowing us to set priorities and develop an effective business strategy.
NN Group is well positioned to capitalise on current market developments. We have strong capabilities in life insurance and pensions in different markets, and we see continued growth in demand as the economy recovers and as penetration increases, further driven by the ongoing need to save.
Our life and pension business is backed by strong investment management capabilities that deliver sound results for our customers over the long term.
Ageing population and increasing life expectancy are important trends affecting insurance companies. These patterns have consequences for insurers as they are required to make capital available to meet increased pension obligations and pay out on policies for longer than anticipated.
In the Netherlands, unit-linked products have triggered a discussion on costs and transparency, and resulted in negative public attention and litigation.
After a period of de-risking our investments during the financial crisis, we are gradually shifting our portfolio to higher-yielding assets, especially in the Netherlands. We will do this in a prudent and disciplined manner.
NN Group is well positioned to benefit from an ageing population and increased longevity, as changing demographics increases the demand for retirement solutions, both in mature and growth markets.
Over the years we have adjusted our product portfolio, across all of our businesses, to ensure transparency and in order to help customers make better choices about their financial futures.
These trends were also identified by key stakeholder groups as part of our materiality assessment. For more information see Sustainability Report.
Emerging markets in Central and Eastern Europe Emerging markets present growth opportunities for insurance providers. While more mature markets have high levels of insurance penetration, emerging markets such as Central and Eastern Europe (CEE), with a burgeoning middle class, offer insurance companies increasing opportunities to offer a variety of services.
Not all CEE markets provide the same level of stability from a regulatory or political perspective. Example areas where differences occur are solvency supervision and government intervention in pensions or pension funds.
More and stricter regulatory demands Increasing regulation, as a result of the financial crisis and the lack of transparency around some financial products, has placed significant compliance and governance demands on insurers.
The financial crisis has also led to calls from regulators for greater transparency in the process surrounding the development and sale of financial products.
There is a shift away from transaction-based customer relationships, towards more personalised interactions, which optimise customer experience. Above all, customers expect to be able to engage with their insurance provider across devices and receive a flawlessly integrated experience across web, social, mobile and other channels. Insurers realise that by deploying a customer-focused technology strategy they can deliver relevant and innovative services that build a strong and loyal customer base.
NN Group is well prepared for Solvency II given the business’ strong ability to generate capital and our solid solvency ratios.
In line with our values – we care, we are clear, we commit – our products and services undergo an intensive examination process to ensure their suitability for customers and that we comply with all applicable regulatory product requirements.
Improving distribution and customer experience New technology presents opportunities for NN Group to improve service and interaction with customers. NN Group strives to be available wherever the customer requires.
We have made a significant investment in modernising our IT infrastructure and direct channels and will continue to do so as technology develops.
An effective technology strategy allows us to improve processes that make the customer’s interaction with NN Group more satisfying and efficient. Additionally, we have robust controls in place that allow us to quickly identify areas of operational improvement that will benefit our customers.
Multi-access distribution network NN Group strives to be available to customers wherever they require. We operate via agents, brokers, banks and direct servicing, which allows customers to choose how they interact with us.
Strong balance sheet Effective capital and risk management ensure that we meet the interests of all our stakeholders and deliver value. Maintaining our strong balance sheet is key to absorbing market volatility and ensuring NN Group and our operating entities are adequately capitalised at all times.
By understanding global trends facing society and the impact these might have on our customers and on our business, NN Group is able to contribute to a healthy and stable society. In doing so we can create value for our stakeholders, and will contribute to improving the lives of people today and for generations to come.
In 2014, we launched our company’s corporate citizenship programme Future Matters. The goal of this programme is to improve people’s financial well-being by enabling them to grow economic opportunities, help them realise their financial ambitions and overcome adversity. We do this by investing in financial education tools and awareness building campaigns to help consumers make informed decisions and secure their financial futures. In addition, we contribute to the societies in which we operate by granting cash and in-kind donations and through active volunteering efforts of our employees, to help improve financial well-being.
Being a sustainable organisation We consider it vital to the success of our company to foster an open, safe, inclusive and stimulating working environment for our employees. We provide training and development programmes to empower our employees to be at their best and to live our values: we care, we are clear, we commit.
Also, NN Group aims to effectively manage our environmental footprint by reducing the use of natural resources, seeking green alternatives and ultimately compensating for the remainder of our carbon footprint. Making responsible choices in procurement contributes to this.
• Reduce administrative expenses in Netherlands Life, Netherlands Non-life and holding entities by EUR 200 million by 2016, compared with 2013.
• Increase the net operating return on equity of the ongoing business in the medium term, measured against a pro-forma 7.1% in 2013.
• Over time generate free cash available to shareholders in a range around the net operating result of the ongoing business, assuming normal markets, the current regulatory framework and no material special items.
• Create a customer-driven organisation offering products and services through efficient processes and systems.
• Deliver insurance products and services that are suitable, transparent and contribute to the financial well-being of customers.
• Create positive change in the communities where we operate by supporting people in their efforts to improve their financial well-being.
• Empower our employees by fostering an open, inclusive and stimulating working environment.
We manage our business for the long term and have clear objectives in place to create value for all of our stakeholders. In 2014, we introduced the NN statement of Living our Values to guide our employees in their daily decisions and to set the standard for interacting with all of our stakeholders. We also developed a new NN Group Responsible Investment Policy Framework outlining our vision and approach to environmental, social and governance issues, and we grew our sustainable assets under management by 18% to EUR 4.1 billion. Furthermore, we launched our new corporate citizenship programme Future Matters, in line with our values and strategy.
* NN Group also sets specific financial objectives per business segment.
Lard Friese was appointed NN Group’s chief executive officer (CEO) and chairman of the Management Board and Executive Board on 7 July 2014. From 1 March 2014, he was vice chairman of the NN Group Management Board. From October 2013, he was a member and vice chairman of the ING Insurance management board. Lard brings more than 25 years’ experience in the financial services industry, most recently with Nationale-Nederlanden and ING Insurance Eurasia. He has also held leadership positions at AEGON, VNU/ ACNielsen, Ceska Pojistovna and Generali-PPF Holding.
Delfin Rueda was appointed NN Group’s chief financial officer (CFO) on 1 March 2014 and a member of our Management Board and Executive Board on 7 July 2014. From October 2013, he was CFO of the ING Insurance management board. Delfin brings 21 years’ experience in the financial services industry, most recently with Atradius. Previously he held leadership positions at J.P. Morgan, UBS and Andersen Consulting.
Robin Spencer was appointed to NN Group’s Management Board on 1 August 2014 and as chief executive officer (CEO) of NN Group’s international insurance business on 1 September 2014. He is responsible for NN Group’s Insurance Europe, Japan Life, Japan Closed Block VA and ING Re businesses. Robin brings more than 20 years’ experience in the insurance industry across life, non-life and asset management in the UK and internationally. Previously he was CEO Aviva UK & Ireland General Insurance, CEO and CFO Aviva Canada and from 2010 to 2012 CRO Aviva Group.
Contents About NN Group Our strategy Business reviewManagement Board improved to EUR 115 million compared with EUR -345 million in 2013, which included a EUR -177 million impact from the refinement of the market interest rate assumption for the separate account pension business. Higher revaluations on real estate investments contributed to the improved non-operating items. This was partly offset by a lower operating result and a special item of EUR -322 million related to the agreement to make ING’s closed defined benefit pension plan in the Netherlands financially independent.
New sales (APE) increased by 10.3% to EUR 247 million, mainly driven by higher group pension renewals, partly offset by lower individual life sales. The value of new business for Netherlands Life improved from EUR -53 million in 2013 to EUR 25 million in 2014, largely reflecting the renewal of a few large group life contracts on more favourable terms.
Strategy Netherlands Life aims to benefit from a strong position in the pension market and to selectively capture growth opportunities. At the same time the objective is to continue to improve customer service and drive efficiency. Netherlands Life’s strategy is focused on managing liability risks to optimise capital requirements, reducing expenses and gradually shifting to higheryielding assets such as mortgages and loans. Management’s aim is to maintain an operating result before tax broadly stable at 2013 levels over the medium term.
Benefiting from our strong position in the pension market to selectively capture growth opportunities
Netherlands Life has a strong position in the Dutch pension market and offers a range of group life and individual life insurance products. It is NN Group’s largest business and primarily consists of Nationale-Nederlanden Life, the second largest Dutch life insurer measured by gross premium income and the largest measured by technical reserves.
1 The 31 December 2014 capital ratios are not final until filed with the regulators. 2 The 31 December 2013 Solvency I ratio of NN Life has been updated to 223% from 222% in the NN Group
Mijn Pensioencoach gives insight into the impact that decisions such as working fewer hours a week have on a person’s pension.
The app is available for download on iTunes and Google Play. Mijn Pensioencoach was developed in consultation with customers and their advisors and tested in customer focus groups.
Netherlands Life offers modern pension solutions in both DB and DC, with and without guarantees. This enables employers or clients to change their retirement arrangements at a pace and with a risk profile that meets their current needs. The product suite consists of a focused set of more transparent and cost-efficient pension products, delivered through efficient IT platforms. The steady growing portion of business being directed to our DC offerings Essentiepensioen and Bewustpensioen contributed to the managing of the liability risks of Netherlands Life’s business. This trend has led to an increased proportion of products in our book of business that have lower capital requirements.
Netherlands Non-life offers a broad range of non-life insurance products – including motor, fire, liability, transport, travel, and disability and accident insurance – to retail, self-employed, SME and corporate customers. We do this through multichannel distribution, such as regular and mandated brokers, ING Bank and the internet. Our Movir brand offers individual disability insurance to self-employed medical and business professionals.
Disability & Accident • Individual disability insurance • Group income insurance • Accident insurance
Business developments We continued our focus on improving underwriting performance and selective growth in profitable product segments. In the motor insurance line we established a comprehensive improvement plan in 2014 that combines new underwriting criteria, increased use of data analytics for better portfolio management and improved fraud detection to achieve better performance results.
P&C claim activities for SME customers were successfully outsourced to a specialised claims handling company Van Ameyde Services during the year. This has allowed us to improve flexibility and service for our SME customers. P&C claims activities for retail customers have been handled by Van Ameyde Services for several years already.
Moving the business mix to protection products and repositioning retirement services
In Spain, we rolled out a new paperless sales process with tablets, adding more mobility for agents. In Turkey, our new retail broker company Sigorta Cini opened several new retail insurance shops, extending our network to 19 locations, offering NN Group life and pension products.
• In Greece, we were acclaimed as the Best Life Insurance Company by World Finance.
• In Romania we were placed 2nd at the Mobile Awards Gala at the Mobile Marketing Forum Conference for the MyING mobile app.
We also made steps to improve suitability of our products and their value propositions. In Turkey, for example, we launched a new term life insurance product that provides an opportunity to renew at premiums set out at the time of purchase, providing our customers with more certainty. NN Group is the only insurance provider offering this type of product in Turkey.
Japan Life offers a range of corporate owned life insurance (COLI) products to owners and employees of SMEs in Japan through independent agents and banks. Japan Life is a leading provider of COLI solutions with more than 5,000 registered independent agents and 40 financial institution partners (banks and securities houses) supported by sales support offices located in 27 cities throughout Japan.
Administrative expenses were EUR 97 million in 2014, an 8.5% decrease compared with EUR 106 million in 2013. Excluding currency effects, administrative expenses remained stable compared with 2013. Result before tax declined by 27.6% to EUR 139 million compared with EUR 192 million for 2013, which included capital gains realised due to asset rebalancing.
Corporate owned life insurance (COLI): traditional life insurance policies that a company, typically an SME, takes out on the lives of executives or employees, whereby the company is both the policyholder and the beneficiary of the policy.
We also continued to invest in initiatives to strengthen relationships with our agents. We rolled out mobile tablets to sales support staff which will allow them to improve the quality of service they provide to our agents. Additionally, we launched an innovative mobile video streaming platform over which we can deliver training for agents.
To better serve the interests of our customers we enhanced product value propositions to make them more appealing and suitable to the market.
In July, Japan Life opened the Agent and Customer Experience office. Agents and customers are at the core of everything the company does, thus the initial focus of the Agent and Customer Experience office is to improve the new business experience – a touch point for all agents and customers.
For example, we started offering a simpler process for customers to buy a life insurance policy, with an insured sum of up to JPY 300 million, if they undergo a health review by a doctor that belongs to a Japan Life recognised organisation.
We also established a dedicated division, the Agent and Customer Experience office, to further enhance the efficiency and quality of service provided to customers and agents (see case study). As a result of this activity Japan Life increased our net promoter score with agents from 25% in 2013 to 34% in 2014 representing an overall improvement in agent loyalty.
Financial highlights The operating result of Investment Management for 2014 was EUR 158 million, up 21.5% from 2013. Positive market performance led to higher assets under management and, as a consequence, to higher fee income, which was partly offset by higher expenses. Assets under management increased by 6.9% to EUR 186 billion. Administrative expenses increased by 4.5% to EUR 328 million while benefiting from EUR 10 million of personnel provision releases. Investment Management’s result before tax was EUR 31 million compared with EUR 131 million in 2013, as 2014 included a special item of EUR -122 million related to the agreement to make ING’s closed defined benefit pension plan in the Netherlands financially independent.
Investment Management continues to develop a range of equity products to provide an appropriate accompaniment to our existing line-up of fixed income and multi-asset offerings. To increase commercial traction, Investment Management is planning to reposition some flagship equity strategies into a higher active risk profile and to expand our suite of specialised equity products, such as a Solvency II efficient equity offering.
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. In line with this strategy, assets under management increased to EUR 186 billion in 2014, driven by favourable market performance.
The team and fund has a very strong performance track record, providing fixed income with equity upside to our client base.
We also capitalised on the opportunity to expand our footprint in the growing demand for asset allocation strategies. In particular by further developing our First Class Multi Asset fund. This flagship total return multi-asset strategy reached EUR 500 million in assets under management in 2014 on the back of strong investment performance.
Customer demand for alternative investments resulted in growth of our loan products. In 2014 the loan book we manage on behalf of our clients grew to EUR 1.7 billion and included corporate loans, commercial real estate loans and infrastructure loans. This product class provides attractive yields and diversification for our institutional client base.
We enhanced our broad offering of fixed income strategies by onboarding an experienced investment team managing an industry-recognised convertible bond fund.
In October the European Central Bank (ECB) appointed ING Investment Management as one of the four executing asset managers to conduct its Asset-Backed Securities Purchase Programme (ABSPP).
The appointment followed a competitively negotiated tender process. Commencing in November, the ECB mandate allows ING Investment Management to use our knowledge, resources and experience to support the proactive development of European monetary policy. We feel this appointment is a great recognition of Investment Management’s expertise and the quality of our people.
The segment Other comprises the businesses of NN Bank and ING Re, the results of the holding company and other results. The result of the holding includes the interest paid on hybrids and debt, interest received on loans provided to subsidiaries and on cash and liquid assets held at the holding company, the amortisation of intangibles and the head office expenses that are not allocated to the business segments. Other results are results that are not allocated to the business segments.
Financial highlights The operating result of the segment Other for 2014 improved substantially to EUR -130 million from EUR -373 million in 2013. The improved holding result of EUR -201 million was favourably impacted by lower interest costs on hybrids and debt, as well as the interest income on the subordinated loans provided by NN Group to NN Life and lower holding expenses. The operating result of the reinsurance business improved to EUR 31 million from EUR -15 million in 2013, reflecting better underwriting results as well as a EUR 31 million one-off loss on a specific reinsurance contract in 2013. NN Bank’s operating result improved to EUR 27 million from EUR -11 million in 2013 as we successfully grew our mortgage and consumer savings activities. The result before tax improved to EUR -142 million compared with EUR -473 million for 2013, in line with the improvement in operating result.
NN Bank NN Bank offers a range of banking products to retail customers in the Netherlands under the Nationale-Nederlanden brand. We are well capitalised and maintain a low risk profile, based on the nature of our assets (mainly prime residential mortgages), our stable retail funding base and the size and composition of our capital.
Strategy NN Bank NN Bank aims to benefit from new market dynamics in mortgages, to gain market share and to continue growth in savings. Our bank product offering is complementary to Nationale-Nederlanden insurance products and therefore offers cross-selling opportunities. NN Bank’s competitive advantage is that we operate very efficiently. We have no bank branches and do not handle payment transactions.
Management’s aim is to achieve a return on equity of 7% by 2018, based on the net operating result of NN Bank as a percentage of the average shareholders’ equity of NN Bank.
Business developments NN Bank Consumer savings in 2014 grew by 21.5% to EUR 7.1 billion, offering competitive rates and attractive products. NN Bank also benefits from growing inflows into bank annuities (banksparen) which offer customers a tax-friendly way to save or pay for their retirement.
NN Bank was recognised by customers and financial advisors for the quality of our mortgage products when we were chosen to receive the prestigious Gouden Spreekbuis award.
ING Re aims to yield capital savings and centrally manage risk. The business showed a solid performance in 2014. New intra-group reinsurance deals were executed to optimise capital use in the group and to manage risk centrally. The reinsurance organisation has also been working hard to prepare for Solvency II.
In 2009, ING Life Japan ceased the sale of these products and placed this portfolio in run-off. ING Life Japan is responsible for managing the policies, the relationships with customers, distribution partners and the Japanese regulatory authority. The minimum guarantee obligations are reinsured by ING Re.
Financial highlights The full-year 2014 result before tax increased to a gain of EUR 109 million from a loss of EUR 252 million for 2013, which reflected a charge of EUR 575 million resulting from a full write-off of the DAC as well as reserve strengthening in order to bring the reserve adequacy of the segment to the 50% confidence level. The full-year 2014 result includes an operating result of EUR 84 million and a market related result net of hedging of EUR 21 million. Administrative expenses were up 16.7% to EUR 21 million, mainly caused by higher processing costs due to an increase in surrenders as well as higher project costs to prepare for the large volumes of future maturities expected in the portfolio.
Contact us NN Group N.V. Amstelveenseweg 500 1081 KL Amsterdam P.O. Box 7207, 1007 JE Amsterdam The Netherlands www.nn-group.com
Disclaimer NN Group’s 2014 Annual Report consists of three documents: the 2014 Annual Review, the 2014 Financial Report and the 2014 Sustainability Report.
Any forward-looking statements made by or on behalf of NN Group speak only as of the date they are made, and, NN Group assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities.