NN Group FY16 profit drops ahead of Delta Lloyd acquisition

Dutch NN Group reported a 24 percent drop in net results to €1.19 billion for 2016 ahead of its planned  acquisition of rival Delta Lloyd.

At the beginning of February NN Group launched an offer for all issued and outstanding ordinary shares in Delta Lloyd at €5.40 per share and announced that it increased its stake in Delta Lloyd to 8 percent of ordinary shares. NN Group plans to combine Delta Lloyd with its Dutch and Belgian activities.

NN Group’s full-year 2016 operating result decreased to €1.23 billion from €1.44 billion in 2015 as private equity dividends and technical margins in Netherlands Life dropped. In addition, Netherlands Non-life was impacted by severe storms.

The company also pointed to cost savings in the Netherlands which brought the expense base down to €761 million.

Lard Friese, CEO, said: “2016 was an eventful and important year for NN Group, a year in which we made considerable steps. We invested in accelerating change and innovating our customer experience, and worked on new and improved products and services. In April, ING completed its divestment of NN Group. We were able to maintain a strong capital position, making us well-positioned to weather volatile markets. This strong financial position allowed us to take an important step in bringing consolidation to the Dutch insurance and asset management markets and to announce an intended offer for the outstanding shares of Delta Lloyd in October 2016.”

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