AMSTERDAM: Dutch insurer NN Group beat forecasts for its third quarter operating results from ongoing business despite heavy claims in its home market and lower levels of new sales.
In results published on Wednesday, the insurer said operating results from ongoing business had risen 43 percent year-on-year to 392 million euros ($429.2 million), ahead of the 275 million euros forecast by analysts polled for Reuters.
Results were helped by performance at its Netherlands life insurance business and a large private equity dividend it received. Overall group sales were down.
The insurer said it would continue with its home market strategy of cutting costs and interacting with customers digitally. The company said it had reduced its cost base in the Netherlands by 201 million euros since 2013.
The company’s asset management business saw net outflows, with assets under management declining 2 percent to 180 billion euros. NN said it “recognised it needed to do more” to achieve net inflows at the business.
“Overall sales for the group were down, as we focus on profitable growth in the low interest rate environment,” said Chief Executive Lard Friese in a statement.
The insurer’s net result fell 7.2 percent to 329 million euros, while net operating return on equity stood at 12.2 percent. Its Solvency I ratio was 261 percent.
A quarter of NN’s shares are still owned by Dutch lender ING , which floated the insurer last year as part of a strategy of divesting its non-banking operations and becoming a pure banking player.
