NN Group reports 2Q16 results

Capital position remains strong; lower operating result

·         Operating result ongoing business of EUR 321 million versus EUR 488 million in 2Q15; the current quarter was impacted by higher claims at Netherlands Non-life due to severe storms, while the second quarter of last year was supported by a private equity dividend and a significantly higher technical margin in Netherlands Life

·         Net result of EUR 335 million versus EUR 392 million in 2Q15 reflecting a lower operating result and negative hedge results in Japan Closed Block VA due to market volatility, partly offset by higher non-operating items

·         Progress on cost savings in the Netherlands, bringing the annual expense base down to EUR 786 million

·         Solvency II ratio increased to 252% from 241% at 1Q16 as positive market impacts were only partly offset by deductions for the EUR 500 million share buyback programme and the 2016 interim dividend

·         Holding company cash capital increased to EUR 2.3 billion driven by dividends from almost all segments

·         Interim dividend 2016 of EUR 0.60 per ordinary share or approximately EUR 195 million

Statement of Lard Friese, CEO

'With a Solvency II ratio of 252% and a cash capital position of EUR 2.3 billion, NN Group's capital position remained strong and resilient during the second quarter of 2016, allowing us to weather severe market volatility and pay an interim dividend in line with our dividend policy.

Our businesses were however impacted by market conditions and low interest rates, reducing the investment income of our insurance businesses. Extraordinary developments in recent months, including the result of the 'Brexit' referendum, impacted global financial markets. The asset management environment remains difficult due to ongoing market turmoil, resulting in continued de-risking by clients and pressure on fees.

Our Non-life combined ratio was impacted by severe storms in the Netherlands in the Property and Casualty business, which was only partly compensated by a favourable claims development in the Disability & Accident portfolio. Regulatory changes, such as the tax on assets in Poland introduced in February 2016, impacted the operating result of Insurance Europe. We are closely following the Polish government's plans to further reform the pension system.