NN Bank NN Bank operates in the Netherlands and offers a range of retail banking products, e.g. mortgages and savings products.
Our key figures 2016 was an important year for NN Group. It was a year in which we continued to deliver on the targets that we set.
In 2016, total new sales amounted to EUR 1,386 million, up 2.9% compared with 2015, on a constant currency basis.
CO2 emissions of our direct environmental footprint showed a decrease of 18%. The remainder of our CO2 emissions was compensated by purchasing voluntary carbon units.
We empower people to be their best and respect each other and the world we live in.
In the same way that our values are not voluntary suggestions, our NN Code of Conduct is not optional. All employees are required to become familiar with its content, and NN Group provides clarity on what is and what is not acceptable behaviour. The Code of Conduct outlines our standards with regard to such issues as conflicts of interest, fraud, corruption and Financial Economic Crime. In addition to a general Code for all employees, a Manager annex was developed inform managers of their specific responsibilities in raising awareness and upholding the standards.
The annual performance evaluation and appraisal of our senior leaders is 50% based on the extent to which they demonstrate behaviour in line with our leadership profile, which is founded on our values. Some of the key elements in the NN Leadership profile are: demonstrating integrity, customer focus and creating a culture of clear direction and open feedback.
Ab was one of the first ideas initiated by Sparklab, the innovation lab launched by NN Non-life in the Netherlands. Ab is a home protection service that combines smart technology with preventive technology and post-burglary service and support. Collaboration between the police, fire departments, municipalities, and residents was a crucial element in developing the Ab-concept. These external partnerships support the service’s technical elements, including sensors that are installed in people’s homes. The Ab system is already proving beneficial, as a burglary was prevented during the pilot phase of the project.
In October 2016, NN Group opened The Bridge, a creative location where all colleagues are encouraged and empowered to unleash their creativity and contribute to an innovation mindset within our company.
Also in other countries, for example Poland, currently elected governments are expected to take decisions on the pension system that may impact the activities of life insurance and pension providers in those countries.
Transparent and sustainable products and services Customers ask for transparent products and services that are easy to understand, and not only generate good financial returns, but also have a positive impact on society and the environment. Customers are increasingly looking for transparency and clear information, enabling them to make the right choices. They also increasingly care about the way we integrate sustainability aspects into our business and product offering.
With our core activities in retirement services and asset management, we can fill the gap in risk protection that is a result of retracting governments. We have the required expertise and, by combining our asset management, life insurance and retirement service capabilities, we have a solid basis on which to build.
Pension reform An ageing population, limited economic growth, unemployment, and budget deficits cause difficulties in the funding of pensions in different countries. With governments retracting, the responsibility to manage these difficulties is transferred to individuals. At the same time, they are confronted with increasing complexity caused by various changes in pension systems, usually resulting in low pension awareness.
Read more about our Risk profile and our approach to Risk Management on pages 119-151 of the Financial Report (Note 52).
Now that digital technology is the primary means with which to process information, new forms of risk and crime are also on the rise.
Supporting our customers in protecting their data and the risks of cyber crime
In Bulgaria, we have an information portal called Pensiopedia which provides information about the Bulgarian pension system in an accessible and understandable way, with NN experts available to answer questions. Additionally, in Bulgaria we provide tools which aim to improve the financial literacy of children.
We regularly inform the market of strategic, financial and commercial developments at NN Group. In doing so, we constantly strive to enhance our reputation as a solid, transparent and reliable company for all our stakeholders.
Debt instruments NN Group is borrowing subordinated and senior debt through debt capital markets to meet long term financing requirements. In March 2015, NN Group established a Debt Issuance Programme which facilitates the issuance of debt instruments.
We support our employees, including management, by offering development opportunities, taking into account different learning needs and styles. Development planning is a fundamental part of our annual planning, coaching, and appraisal cycle. We offer career checks, and specific coaching by internal and external specialists. In 2016, NN spent EUR 13.7 million on training and development. Among other resources, hundreds of online learning and training modules and e-Books were made available to our employees.
Netherlands Life 18 Netherlands Non-life 8 Insurance Europe 35 Japan 7 Asset Management 9 Other 23
Financial tax disclosures The income tax charge of EUR 273 million in 2016 represents an effective tax rate of 18.7% (2015: 9.4%). The effective tax rate in 2016 was lower than the weighted average statutory tax rate of 25.4% due to tax exempt income, partly set off by prior year adjustments. More information on the effective tax rate can be found on pages 91-93 of the Financial Report (Note 35).
Delta Lloyd shareholders have until 7 April 2017 to offer their shares, unless extended.
‘ Good insurer: clear, transparent, with a vision!’ Els Riseeuw from IAK about NL Non-life Group Disability
NN Group strives to be available to customers wherever they require us to be. We operate via agents, brokers, banks, and direct servicing, which allow customers to choose how and when they interact with us. In all our countries, we continue to optimise our distribution channels to be there were our customers want us to be. Here we highlight several examples.
‘ This initiative simplified the sales process radically, resulting in better service.’
• Embed the mapping of ESG risks and opportunities across different procurement categories into the procurement strategy by 2020
The instruments to conduct this dialogue include regular interactions and feedback sessions for customers on our products and services; roundtable sessions with policymakers, academics and peers; works council meetings with employee representatives and continued dialogue with our employees; frequent bilateral contact with regulatory and government authorities and societal organisations (including non-governmental organisations, labour unions and industry associations); and briefing sessions and roadshows for journalists, analysts, and investors.
– NN (L) European Sustainable Equity Fund 91 148 -38.5% 128
NN Future Matters Future Matters is the global community investment programme for NN Group. It aims to empower people in the markets where we operate to improve their financial wellbeing, and to support them in growing their economic opportunities, so they can realise their dreams and overcome adversity.
Settlement date The date on which a trade must be settled and the buyer must make payment. On 2 July 2014, ING Group offered part of its shares in the share capital of NN Group to the public and the shares in the capital of NN Group were listed on Euronext Amsterdam. Settlement date of the offering was 7 July 2014.
NN Group N.V. Schenkkade 65 2595 AS Den Haag P.O. Box 90504, 2509 LM Den Haag The Netherlands www.nn-group.com