Dutch P&C underwriting helps boost NN Group Q2 results
Improved underwriting performance of the Dutch non-life business, private equity dividends at Netherlands Life and lower expenses have driven NN Group’s operating result up 25.6 percent year on year in the second quarter of 2018 to €508 million.
The combined ratio of NN Group’s Netherlands non-life business improved to 97.9 percent in the second quarter of 2018 from 107.4 percent in the same period a year ago.
“While this is encouraging, work remains to be done to structurally improve the combined ratio to 97 percent or below,” said CEO Lard Friese.
“The operating results of most segments improved compared with the second quarter of last year, supported by an improved P&C underwriting performance at Netherlands Non-life,” Friese added.
Further group cost cuts of €62 million in the second quarter of 2018 added to total cost reductions achieved to date of €236 million, the company noted.
“This means we are well on our way to achieving our cost reduction target of €400 million by the end of 2020,” Friese noted.
“Our profitable commercial momentum continued with the value of new business increasing at both Insurance Europe and Japan Life. The measures implemented to improve performance at Netherlands Non-life are starting to bear fruit,” he added.
The group’s net result was up 92.7 percent year on year at €463 million in the second quarter, reflecting the higher operating result and higher capital gains, while the second quarter of 2017 included a provision related to ING Australia Holdings.
Friese said that further steps have been taken with regard to the Delta Lloyd integration.
“The application for including the Delta Lloyd entities in the Partial Internal Model has been submitted, we have completed the integration of the asset management businesses as well as the head offices, and we have decommissioned several IT systems. Most Delta Lloyd products have been rebranded to NN. During the migration phase, our efforts have been focused on ensuring the least possible disruption for our customers and business partners, and we are pleased to see that customer satisfaction levels remain high,” Friese noted.
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