NN Group, Delta Lloyd merger delivers €133m savings in 2017
Dutch NN Group’s acquisition of its peer Delta Lloyd has lowered the cost base by €133 million in 2017, according to a Feb. 15 press release.
Overall, NN Group is targeting €350 million of cost savings through the integration of the businesses by 2020.
At the end of 2016, NN Group and Delta Lloyd reached an agreement under which NN Group will buy Delta Lloyd for €2.5 billion. The companies said the deal has been driven by competitive market conditions and the capital requirements of Solvency II.
For 2017, NN Group reported an increase in net profit of 77.5 percent year on year to €2.11 billion.
“2017 was a memorable year for NN Group in which we successfully completed the acquisition of Delta Lloyd,” said NN Group CEO Lard Friese.
“We have started the integration in the Netherlands and Belgium creating a leading insurance and pension company, with attractive propositions in asset management and banking. We are making good progress.”
Full-year 2017 operating results of the ongoing business increased to €1.59 billion, up 29.3 percent from 2016, mainly driven by the contribution of the Delta Lloyd businesses and improved results at most segments, partly offset by lower results at Netherlands non-life.
“We continue to see volatility in the results of the non-life business, where an improvement in the P&C business was offset by a deterioration in D&A performance,” Friese said. “We are implementing a range of measures to sustainably improve the non-life performance.”
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