NN GROUP FINANCIAL SUPPLEMENT 4Q2016

Transcription

1 NN GROUP FINANCIAL SUPPLEMENT 4Q2016

2 NN GROUP FINANCIAL SUPPLEMENT 4Q2016 INTRODUCTION The Financial Supplement includes quarterly financial trend data and is published on a quarterly basis. Figures are calculated at historical foreign exchange rates, unless otherwise stated. Operating result and Adjusted allocated equity (as used in the calculation of Net operating ROE) are Alternative Performance Measures. These measures are derived from figures according to IFRS-EU. The operating result is derived by adjusting the reported result before tax to exclude the impact of result on divestments, discontinued operations and special items, gains/losses and impairments, revaluations and market & other impacts. The adjusted allocated equity is derived by adjusting the reported total equity to exclude revaluation reserves and the undated subordinated notes classified as equity. Alternative Performance Measures are non-ifrs-eu measures that have a relevant IFRS-EU equivalent. For definitions and explanations of the Alternative Performance Measures reference is made to the section 'Alternative Performance measures (Non-GAAP measures)' in the 30 June 2016 Condensed consolidated interim financial information. The segment 'Other' consists of NN Bank, reinsurance business, the holding company and certain other entities. APE represents annualized premium equivalents sold in the period, with single premiums calculated at 1/10th of the single premium amounts. The quarterly figures of the previous periods, excluding currency effects, are the sum of the monthly figures calculated at the average rate of each individual month of the current quarter. Rounding could cause some small differences. All figures are unaudited. NN GROUP FINANCIAL SUPPLEMENT 4Q2016 2

3 TABLE OF CONTENTS 1.1 Consolidated balance sheet Total equity Shareholders' equity reconciliation Capital base - solvency II Cash capital position at the holding company Investments per asset type Administrative expenses in the Netherlands Earnings per ordinary share New business Total Netherlands Life Netherlands Life - Provisions for life insurance and investment contracts Netherlands Non-life Netherlands Non-life - Key figures by line of business Insurance Europe Insurance Europe - Key figures by country Insurance Europe - Provisions for life insurance and investment contracts and Assets under management pensions Japan Life Japan Life - Provisions for life insurance and investment contracts Asset Management Asset Management - Assets under management and Assets under administration Other NN Bank - Savings and deposits and Mortgages Japan Closed Block VA Japan Closed Block VA - Account value 37 Notes 38 NN GROUP FINANCIAL SUPPLEMENT 4Q2016 3

4 1.1 CONSOLIDATED BALANCE SHEET: ASSETS 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar In EUR million Cash and cash equivalents 8,634 9,131 9,894 10,446 7,436 8,966 8,742 9,666 Financial assets at fair value through profit or loss - trading assets investments for risk of policyholders 30,711 31,485 31,623 31,954 35,154 34,936 37,137 41,629 - non-trading derivatives 4,421 6,809 7,266 6,079 4,656 5,218 4,994 7,267 - designated as at fair value through profit or loss 873 1,308 1, Available-for-sale investments - debt securities 72,779 76,748 76,678 72,933 67,553 67,530 66,322 74,269 - equity securities 6,988 7,007 6,595 6,502 6,840 6,504 6,604 6,748 Loans 33,920 34,533 33,649 32,057 31,013 29,324 28,368 28,899 Reinsurance contracts Associates and joint ventures 2,698 2,537 2,450 2,442 2,197 1,652 1,703 1,627 Real estate investments 2,028 1,913 1,802 1,592 1,564 1,548 1,298 1,217 Property and equipment Intangible assets Deferred acquisition costs 1,636 1,699 1,696 1,584 1,531 1,502 1,499 1,543 Assets held for sale Other assets 3,152 2,710 3,215 3,183 3,092 2,970 3,209 3,862 Total assets 168, , , , , , , ,664 NN GROUP FINANCIAL SUPPLEMENT 4Q2016 4

5 1.1 CONSOLIDATED BALANCE SHEET: EQUITY AND LIABILITIES 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar In EUR million Shareholders' equity (parent) 22,706 25,470 25,254 23,099 20,469 20,271 19,602 24,122 Minority interests Undated subordinated notes Total equity 23,704 26,465 26,250 24,094 21,464 21,301 20,680 25,195 Subordinated debt 2,288 2,288 2,289 2,290 2,290 2,291 2,292 2,294 Debt securities issued Other borrowed funds 7,646 7,952 8,198 7,238 6,785 5,189 4,511 5,955 Insurance and investment contracts - life insurance provisions 80,695 84,240 84,325 81,154 75,827 76,428 75,481 79,743 - non-life insurance provisions 3,536 3,666 3,764 3,879 3,509 3,664 3,749 3,866 - provision for risk of policyholders 30,772 31,558 31,704 32,026 35,212 34,996 37,195 41,692 - other ,382 1,436 1,459 1,484 1,540 Customer deposits and other funds on deposit 10,224 9,682 9,257 8,639 8,034 8,105 7,977 7,653 Financial liabilities at fair value through profit or loss - non-trading derivatives 2,008 2,472 2,557 2,276 1,701 2,042 2,083 2,112 Liabilities held for sale Other liabilities 6,336 7,190 7,455 6,483 5,297 5,831 5,613 8,018 Total liabilities 144, , , , , , , ,469 Total equity and liabilities 168, , , , , , , ,664 NN GROUP FINANCIAL SUPPLEMENT 4Q2016 5

6 1.2 TOTAL EQUITY 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar In EUR million Share capital Share premium 12,153 12,153 12,153 12,153 12,153 12,155 12,155 12,098 Revaluation reserve available-for sale investments Debt securities 9,902 12,810 13,119 10,821 7,792 8,320 7,212 12,626 Revaluation reserve available-for sale investments Equity securities 1,437 1,357 1,143 1,222 1,359 1,156 1,392 1,416 Revaluation reserve crediting to life policyholders -5,574-6,827-6,858-6,135-4,885-5,134-4,704-7,032 Other revaluations Cashflow hedge reserve 4,435 5,546 5,455 4,991 4,029 4,161 3,950 5,388 Currency translation reserve Net defined benefit asset/liability remeasurement reserve Retained earnings and other reserves Shareholders' equity (parent) 22,706 25,470 25,254 23,099 20,469 20,271 19,602 24,122 Minority interests Undated subordinated notes Total equity 23,704 26,465 26,250 24,094 21,464 21,301 20,680 25,195 Shareholders' equity per share in EUR Shares outstanding in the market (in million) NN GROUP FINANCIAL SUPPLEMENT 4Q2016 6

7 1.3 SHAREHOLDERS' EQUITY RECONCILIATION 31 December 2016 In EUR million (Allocated) Shareholders' equity Less: Revaluation reserves 1) Plus: Minority interest Adjusted (allocated) equity Netherlands Life 15,916 8, ,356 Netherlands Non-life Insurance Europe 1, ,425 Japan Life 2, ,561 Asset Management Other 2) of which Reinsurance business of which NN Bank of which other Ongoing business 22,123 10, ,893 Japan Closed Block VA NN Group 22,706 10, ,476 NN GROUP FINANCIAL SUPPLEMENT 4Q2016 7

8 1.4 CAPITAL BASE - SOLVENCY II 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep In EUR million Solvency II 3)4) IFRS Shareholders' equity 22,706 25,470 25,254 23,099 20,469 20,271 Elimination of deferred acquisition costs and intangible assets ,009-1,023-1,000-1,001 Valuation differences on assets 1,594 2,414 2,547 2,555 1,955 1,358 Valuation differences on liabilities, including insurance and investment contracts -12,455-15,781-14,053-13,457-10,689-10,037 Deferred tax effect on valuation differences 2,887 3,495 3,021 2,885 2,379 2,336 Difference in treatment of non-solvency II regulated entities -1,182-1,272-1,558-1, Excess of assets over liabilities 12,734 13,330 14,202 12,738 12,244 12,109 Deduction of participation in NN Bank Qualifying subordinated debt 3,037 3,058 3,096 3,048 2,921 2,909 Foreseeable dividends and distributions Basic Own Funds 14,660 15,255 15,912 14,877 14,809 15,010 Non-available Own Funds 1,427 1,382 1,436 1,396 1,271 1,185 Non-eligible Own Funds Eligible Own Funds (a) 13,149 13,873 14,476 13,480 13,341 13,824 of which Tier 1 Unrestricted 8,414 9,173 10,174 8,831 8,484 9,080 of which Tier 1 Restricted 1,919 1,929 1,983 1,912 1,844 1,799 of which Tier 2 1,043 1,054 1,039 1,062 1,061 1,032 of which Tier of which non-solvency II regulated entities 1,022 1,086 1, ,217 1,277 Solvency Capital Requirement (b) 5,459 5,871 5,735 5,602 5,587 5,602 of which non-solvency II regulated entities NN Group Solvency II ratio (a/b) 241% 236% 252% 241% 239% 247% NN GROUP FINANCIAL SUPPLEMENT 4Q2016 8

9 1.5 CASH CAPITAL POSITION AT THE HOLDING COMPANY Cash capital position - beginning of period 2,391 2,337 2,107 1,953 1,619 1,612 1,439 1,413 1,953 1,413 Cash divestment proceeds Dividends from subsidiaries 5) ,611 1,548 Capital injections into subsidiaries 6) Other 7) Free cash flow to the holding 8) ,349 1,366 Acquisition Capital flows from / (to) shareholders Increase / (decrease) in debt and loans Cash capital position - end of period 9) 2,489 2,391 2,337 2,107 1,953 1,619 1,612 1,439 2,489 1,953 NN GROUP FINANCIAL SUPPLEMENT 4Q2016 9

10 1.6 INVESTMENT PER ASSET TYPE 31 December 2016 In EUR million IFRS classification Assetbacked securities Covered bonds Financial institutions bonds Corporate bonds Government bonds Total debt securities Public equity Real estate equity Private equity Other equity securities Total equity Real estate securities Cash and cash equivalents ,634-8,634 Financial assets at fair value through profit or loss - - trading assets investments for risk of policyholders ,711 30,711 - non-trading derivatives ,421-4,421 - designated as at fair value through profit or loss Available-for-sale investments - - debt securities 1, ,863 10,409 56,041 72, ,779 - equity securities ,368 1, ,430 6, ,988 Loans 1, , ,645 6, ,920 Associates and joint ventures , ,698 Real estate investments , ,028 Other assets 10) ,453-5,453 Total 3, ,863 10,409 56,281 74,954 3,368 1, ,062 8,355 3,890 25,645 6,423 18,527 30, ,505 Mortgage Deposits and other Loans Other Investments for risk of policyholders Total NN GROUP FINANCIAL SUPPLEMENT 4Q

11 1.7 ADMINISTRATIVE EXPENSES IN THE NETHERLANDS In EUR million 4Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 FY2015 Administrative expenses in the Netherlands 11) Netherlands Life 12) Netherlands Non-life 13) Corporate / holding 14) Total NN GROUP FINANCIAL SUPPLEMENT 4Q

12 1.8 EARNINGS PER ORDINARY SHARE 4Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 FY2016 FY2015 Basic earnings per ordinary share 15) Net result (in EUR million) ,189 1,565 Coupon on undated subordinated notes (in EUR million) Basic earnings (in EUR million) ,156 1,531 Weighted average number of ordinary shares (in million) Basic earnings per ordinary share (in EUR) Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 FY2016 FY2015 Diluted earnings per ordinary share 16) Basic earnings (in EUR million) ,156 1,531 Weighted average number of ordinary shares (in million) Dilutive instruments: Stock option and share plans (in million) Weighted average number of ordinary shares (including dilutive instruments in million) Diluted earnings per ordinary share (in EUR) NN GROUP FINANCIAL SUPPLEMENT 4Q

13 1.9 ADDITIONAL INFORMATION: NEW BUSINESS In EUR million 2H2016 1H2016 2H2015 1H2015 FY2016 FY2015 NN Group Value of new business Present value of new business premiums 4,096 4,488 3,368 4,753 8,584 8,120 New business margin 31) 2.8% 2.2% 2.6% 2.4% 2.5% 2.5% In EUR million 2H2016 1H2016 2H2015 1H2015 FY2016 FY2015 Netherlands Life Value of new business Present value of new business premiums ,196 1,020 1,482 New business margin 31) 1.5% 0.7% -0.5% 0.6% 0.8% 0.4% In EUR million 2H2016 1H2016 2H2015 1H2015 FY2016 FY2015 Insurance Europe Value of new business Present value of new business premiums 1,813 1,817 1,603 1,821 3,631 3,423 New business margin 31) 2.1% 2.5% 2.5% 3.0% 2.3% 2.8% In EUR million 2H2016 1H2016 2H2015 1H2015 FY2016 FY2015 Japan Life Value of new business Present value of new business premiums 2,109 1,825 1,479 1,736 3,933 3,215 New business margin 31) 3.4% 2.7% 3.4% 2.9% 3.1% 3.1% 31) Value of new business as a percentage of Present value of new business premiums. NN GROUP FINANCIAL SUPPLEMENT 4Q

14 2.1 ANALYSIS OF RESULTS: TOTAL Analysis of results Netherlands Life Netherlands Non-life Insurance Europe Japan Life Asset Management Other Operating result ongoing business ,227 1,435 Non-operating items ongoing business of which gains/losses and impairments of which revaluations of which market & other impacts Japan Closed Block VA Special items before tax Result on divestments Result before tax ,463 1,761 Taxation Minority interests Net result ,189 1,565 Shares outstanding in the market (in million) Basic earnings per ordinary share in EUR 15) Diluted earnings per ordinary share in EUR 16) New business ongoing business Single premiums ,389 1,817 Regular premiums ,247 1,114 New sales life insurance (APE) ,386 1,295 Value of new business NN GROUP FINANCIAL SUPPLEMENT 4Q

15 2.1 ANALYSIS OF RESULTS: TOTAL Key figures ongoing business Gross premium income 2,000 2,123 2,020 3,279 1,762 1,911 1,948 3,576 9,421 9,197 Total administrative expenses ,734 1,758 Cost/income ratio (Administrative expenses/operating income) 34.0% 33.4% 33.5% 32.9% 38.3% 32.6% 30.7% 34.8% 33.5% 33.9% Combined ratio (Netherlands Non-life) 17) 103.9% 101.8% 103.7% 104.3% 100.7% 105.6% 99.7% 100.2% 103.4% 101.5% Asset Management Assets under Management 18) Life general account invested assets 18) Investment margin/life general account invested assets (in bps) 19) Total provisions for insurance and investment contracts 18) of which for risk policyholder 18) NN Life Solvency II ratio 20) 203% 211% 239% 212% 216% 225% 203% 216% Net operating result 21) ,165 Adjusted allocated equity (end of period) 22) 11,893 11,934 11,673 11,306 11,194 10,814 10,814 10,745 11,893 11,194 Net operating ROE 23) 7.2% 8.1% 8.6% 8.6% 7.5% 12.2% 14.9% 8.7% 8.1% 10.8% Key figures Japan Closed Block VA Account value 8,201 8,699 9,064 9,125 10,028 10,217 11,610 13,646 8,201 10,028 Number of policies 154, , , , , , , , , ,192 Key figures Total NN Group Solvency II ratio 3)4) 241% 236% 252% 241% 239% 247% 241% 239% Total assets 18) Shareholders' equity 22,706 25,470 25,254 23,099 20,469 20,271 19,602 24,122 22,706 20,469 Employees (internal FTEs, end of period) 11,464 11,533 11,443 11,485 11,461 11,531 11,538 11,588 11,464 11,461 NN GROUP FINANCIAL SUPPLEMENT 4Q

16 2.1 ANALYSIS OF RESULTS: TOTAL - EXCLUDING CURRENCY EFFECTS Analysis of results Netherlands Life Netherlands Non-life Insurance Europe Japan Life Asset Management Other Operating result ongoing business ,229 1,452 Non-operating items ongoing business of which gains/losses and impairments of which revaluations of which market & other impacts Japan Closed Block VA Special items before tax Result on divestments Result before tax ,466 1,786 Taxation Minority interests Net result ,192 1,586 Shares outstanding in the market (in million) Basic earnings per ordinary share in EUR 15) Diluted earnings per ordinary share in EUR 16) New business ongoing business New sales life insurance (APE) ,387 1,348 Key figures ongoing business Gross premium income 2,000 2,091 2,040 3,331 1,818 2,008 2,020 3,666 9,462 9,512 Total administrative expenses ,735 1,767 Key figures Total NN Group Total assets 18) NN GROUP FINANCIAL SUPPLEMENT 4Q

17 2.2.1 ANALYSIS OF RESULTS: NETHERLANDS LIFE Analysis of results Investment margin Fees and premium-based revenues Technical margin Operating income non-modelled business Operating income ,175 1,385 Administrative expenses DAC amortisation and trail commissions Expenses Operating result Non-operating items of which gains/losses and impairments of which revaluations of which market & other impacts Special items before tax Result on divestments Result before tax ,147 1,222 Taxation Minority interests Net result ,083 New business Single premiums Regular premiums New sales life insurance (APE) Value of new business 9 6 Key figures Gross premium income ,231 2,689 Total administrative expenses Cost/income ratio (Administrative expenses/operating income) 39.1% 34.8% 34.8% 36.5% 39.8% 27.8% 23.3% 39.8% 36.3% 31.1% Life general account invested assets 18) Investment margin/life general account invested assets (in bps) 19) Total provisions for insurance and investment contracts 18) of which for risk policyholder 18) Allocated equity (end of period) 15,916 18,148 17,818 16,124 13,859 14,148 13,488 17,343 15,916 13,859 NN Life Solvency II ratio 20) 203% 211% 239% 212% 216% 225% 203% 216% Net operating result Adjusted allocated equity (end of period) 7,356 7,333 7,187 7,049 6,966 7,017 6,931 6,664 7,356 6,966 Net operating ROE 24) 7.4% 7.7% 8.7% 8.7% 7.9% 13.6% 17.0% 7.4% 8.1% 11.5% Employees (internal FTEs, end of period) 2,088 2,097 2,078 2,094 2,083 2,099 2,085 2,113 2,088 2,083 NN GROUP FINANCIAL SUPPLEMENT 4Q

18 2.2.2 NETHERLANDS LIFE - PROVISIONS FOR LIFE INSURANCE AND INVESTMENT CONTRACTS In EUR billion 4Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 FY2016 FY2015 Provisions for life insurance and investment contracts for risk of company - roll forward Beginning of period Deposits Withdrawals / Benefits Net production Acquisition / Divestments / Transfers Market performance / Interest credited FX impact and other End of period In EUR billion 4Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 FY2016 FY2015 Provisions for life insurance and investment contracts for risk of policyholders - roll forward Beginning of period Deposits Withdrawals / Benefits Net production Acquisition / Divestments / Transfers Market performance / Interest credited FX impact and other End of period NN GROUP FINANCIAL SUPPLEMENT 4Q

19 2.3.1 ANALYSIS OF RESULTS: NETHERLANDS NON-LIFE Analysis of results Earned premiums ,555 1,503 Investment income Other income Operating income ,665 1,646 Claims incurred, net of reinsurance ,145 1,065 Acquisition costs Administrative expenses Acquisition costs and administrative expenses Expenditure ,608 1,526 Operating result insurance businesses Operating result broker businesses Total operating result Non-operating items of which gains/losses and impairments of which revaluations of which market & other impacts Special items before tax Result on divestments Result before tax Taxation Minority interests Net result Key figures Gross premium income ,578 1,534 Total administrative expenses 13) Combined ratio 17) 103.9% 101.8% 103.7% 104.3% 100.7% 105.6% 99.7% 100.2% 103.4% 101.5% of which Claims ratio 17) 73.9% 72.0% 73.7% 75.0% 70.3% 74.5% 68.8% 69.8% 73.7% 70.8% of which Expense ratio 17) 29.9% 29.8% 30.1% 29.3% 30.4% 31.1% 30.9% 30.4% 29.8% 30.7% Total insurance provisions 18) Allocated equity (end of period) Net operating result Adjusted allocated equity (end of period) Net operating ROE 24) 12.8% 18.4% 16.9% 8.8% 22.0% 22.8% 34.5% 18.4% 14.1% 24.4% Employees (internal FTEs, end of period) 1,609 1,619 1,630 1,667 1,674 1,692 1,702 1,712 1,609 1,674 NN GROUP FINANCIAL SUPPLEMENT 4Q

20 2.3.2 NETHERLANDS NON-LIFE - KEY FIGURES BY LINE OF BUSINESS Gross premium income by line of business Disability & Accident Fire Marine & Aviation Motor Miscellaneous Indirect business Property & Casualty Total ,578 1,534 Operating result by line of business Disability & Accident Fire Marine & Aviation Motor Miscellaneous Indirect business Property & Casualty Mandema & Partners and Zicht broker businesses Total Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 FY2016 FY2015 Combined ratios Disability & Accident and Property & Casualty 17) Disability & Accident Combined ratio 104.8% 96.8% 87.3% 103.3% 100.8% 99.7% 97.4% 92.6% 98.1% 97.6% of which Claims ratio 82.5% 75.3% 65.6% 82.5% 77.7% 76.5% 75.5% 70.3% 76.5% 74.9% of which Expense ratio 22.4% 21.6% 21.8% 20.8% 23.1% 23.2% 21.9% 22.4% 21.6% 22.6% Property & Casualty Combined ratio 103.0% 106.0% 117.9% 105.2% 100.7% 110.3% 101.7% 106.5% 108.0% 104.8% of which Claims ratio 66.7% 69.2% 80.7% 68.4% 64.3% 73.0% 63.0% 69.4% 71.2% 67.5% of which Expense ratio 36.3% 36.8% 37.2% 36.8% 36.3% 37.3% 38.7% 37.1% 36.8% 37.3% Total Combined ratio 103.9% 101.8% 103.7% 104.3% 100.7% 105.6% 99.7% 100.2% 103.4% 101.5% of which Claims ratio 73.9% 72.0% 73.7% 75.0% 70.3% 74.5% 68.8% 69.8% 73.7% 70.8% of which Expense ratio 29.9% 29.8% 30.1% 29.3% 30.4% 31.1% 30.9% 30.4% 29.8% 30.7% NN GROUP FINANCIAL SUPPLEMENT 4Q

21 2.4.1 ANALYSIS OF RESULTS: INSURANCE EUROPE Analysis of results Investment margin Fees and premium-based revenues Technical margin Operating income non-modelled business Operating income Life Insurance Administrative expenses DAC amortisation and trail commissions Expenses Life Insurance Operating result Life Insurance Operating result Non-life Operating result Non-operating items of which gains/losses and impairments of which revaluations of which market & other impacts Special items before tax Result on divestments Result before tax Taxation Minority interests Net result New business Single premiums , Regular premiums New sales life insurance (APE) Value of new business Key figures Gross premium income ,360 2,277 Total administrative expenses (Life & Non-life) Cost/income ratio (Administrative expenses/operating income) 37.2% 35.9% 35.7% 38.6% 37.8% 34.8% 35.2% 37.2% 36.8% 36.1% Life general account invested assets 18) Investment margin/life general account invested assets (in bps) 19) Total provisions for insurance and investment contracts 18) of which for risk policyholder 18) Assets under Management Pensions 18)25) Allocated equity (end of period) 1,934 1,941 1,867 2,043 1,988 1,975 1,877 2,267 1,934 1,988 Net operating result Adjusted allocated equity (end of period) 1,425 1,345 1,299 1,499 1,486 1,480 1,460 1,679 1,425 1,486 Net operating ROE 24) 12.9% 13.0% 11.4% 7.7% 10.6% 11.1% 10.6% 7.8% 11.2% 10.0% Employees (internal FTEs, end of period) 4,142 4,192 4,112 4,097 4,042 4,045 4,053 4,059 4,142 4,042 NN GROUP FINANCIAL SUPPLEMENT 4Q

22 2.4.1 ANALYSIS OF RESULTS: INSURANCE EUROPE - EXCLUDING CURRENCY EFFECTS Analysis of results Investment margin Fees and premium-based revenues Technical margin Operating income non-modelled business Operating income Life Insurance Administrative expenses DAC amortisation and trail commissions Expenses Life Insurance Operating result Life Insurance Operating result Non-life Operating result Non-operating items of which gains/losses and impairments of which revaluations of which market & other impacts Special items before tax Result on divestments Result before tax Taxation Minority interests Net result New business New sales life insurance (APE) Key figures Gross premium income ,358 2,257 Total administrative expenses (Life & Non-life) NN GROUP FINANCIAL SUPPLEMENT 4Q

23 2.4.2 INSURANCE EUROPE - KEY FIGURES BY COUNTRY Gross premium income by country Belgium Poland Czech Republic Hungary Spain Other Insurance Europe ,360 2,277 Operating result by country Belgium Poland Czech Republic Hungary Spain Other Insurance Europe New sales (APE) by country Belgium Poland Czech Republic Hungary Spain Other Insurance Europe NN GROUP FINANCIAL SUPPLEMENT 4Q

24 2.4.2 INSURANCE EUROPE - KEY FIGURES BY COUNTRY - EXCLUDING CURRENCY EFFECTS Gross premium income by country Belgium Poland Czech Republic Hungary Spain Other Insurance Europe ,358 2,257 Operating result by country Belgium Poland Czech Republic Hungary Spain Other Insurance Europe New sales (APE) by country Belgium Poland Czech Republic Hungary Spain Other Insurance Europe NN GROUP FINANCIAL SUPPLEMENT 4Q

25 2.4.3 INSURANCE EUROPE - PROVISIONS FOR LIFE INSURANCE AND INVESTMENT CONTRACTS AND ASSETS UNDER MANAGEMENT PENSIONS In EUR billion 4Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 FY2016 FY2015 Provisions for life insurance and investment contracts for risk of company - roll forward Beginning of period Deposits Withdrawals / Benefits Net production Acquisition / Divestments / Transfers Market performance / Interest credited FX impact and other End of period In EUR billion 4Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 FY2016 FY2015 Provisions for life insurance and investment contracts for risk of policyholders - roll forward Beginning of period Deposits Withdrawals / Benefits Net production Acquisition / Divestments / Transfers Market performance / Interest credited FX impact and other End of period In EUR billion 4Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 FY2016 FY2015 Assets under management pensions - roll forward Beginning of period Deposits Withdrawals / Benefits Net production Acquisition / Divestments / Transfers Market performance / Interest credited FX impact and other End of period NN GROUP FINANCIAL SUPPLEMENT 4Q

26 2.5.1 ANALYSIS OF RESULTS: JAPAN LIFE Analysis of results Investment margin Fees and premium-based revenues Technical margin Operating income non-modelled business Operating income Administrative expenses DAC amortisation and trail commissions Expenses Operating result Non-operating items of which gains/losses and impairments of which revaluations of which market & other impacts Special items before tax Result on divestments Result before tax Taxation Minority interests Net result New business Single premiums Regular premiums New sales life insurance (APE) Value of new business Key figures Gross premium income ,230 2,678 Total administrative expenses Cost/income ratio (Administrative expenses/operating income) 31.4% 22.3% 27.4% 14.0% 28.0% 24.4% 26.5% 15.1% 22.5% 22.6% Life general account invested assets 18) Total provisions for insurance and investment contracts 18) of which for risk policyholder 18) Allocated equity (end of period) 2,272 2,650 2,822 2,313 1,879 1,757 1,667 1,808 2,272 1,879 Net operating result Adjusted allocated equity (end of period) 1,561 1,669 1,640 1,484 1,398 1,349 1,301 1,363 1,561 1,398 Net operating ROE 24) 4.1% 6.9% 4.3% 13.2% 5.5% 7.8% 5.7% 15.6% 7.0% 8.6% Employees (internal FTEs, end of period) NN GROUP FINANCIAL SUPPLEMENT 4Q

27 2.5.1 ANALYSIS OF RESULTS: JAPAN LIFE - EXCLUDING CURRENCY EFFECTS Analysis of results Investment margin Fees and premium-based revenues Technical margin Operating income non-modelled business Operating income Administrative expenses DAC amortisation and trail commissions Expenses Operating result Non-operating items of which gains/losses and impairments of which revaluations of which market & other impacts Special items before tax Result on divestments Result before tax Taxation Minority interests Net result New business New sales life insurance (APE) Key figures Gross premium income , ,273 3,012 Total administrative expenses NN GROUP FINANCIAL SUPPLEMENT 4Q

28 2.5.2 JAPAN LIFE - PROVISIONS FOR LIFE INSURANCE AND INVESTMENT CONTRACTS In EUR billion 4Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 FY2016 FY2015 Provisions for life insurance and investment contracts for risk of company - roll forward Beginning of period Deposits Withdrawals / Benefits Net production Acquisition / Divestments / Transfers Market performance / Interest credited FX impact and other End of period NN GROUP FINANCIAL SUPPLEMENT 4Q

29 2.6.1 ANALYSIS OF RESULTS: ASSET MANAGEMENT Analysis of results Investment income Fees Operating income Administrative expenses Operating result Non-operating items Special items before tax Result on divestments Result before tax Taxation Minority interests Net result Key figures Total administrative expenses Cost/income ratio (Administrative expenses/operating income) 72.6% 68.0% 70.8% 74.0% 82.4% 72.6% 70.3% 71.2% 71.3% 74.0% Net inflow Assets under Management (in EUR billion) Assets under Management 18) Fees/average Assets under Management (in bps) Allocated equity (end of period) Net operating result Adjusted allocated equity (end of period) Net operating ROE 24) 24.6% 28.4% 24.2% 21.4% 19.8% 25.2% 28.4% 27.3% 24.7% 25.3% Employees (internal FTEs, end of period) 1,090 1,129 1,144 1,167 1,180 1,188 1,176 1,173 1,090 1,180 NN GROUP FINANCIAL SUPPLEMENT 4Q

30 2.6.1 ANALYSIS OF RESULTS: ASSET MANAGEMENT - EXCLUDING CURRENCY EFFECTS Analysis of results Investment income Fees Operating income Administrative expenses Operating result Non-operating items Special items before tax Result on divestments Result before tax Taxation Minority interests Net result Key figures Total administrative expenses NN GROUP FINANCIAL SUPPLEMENT 4Q

31 2.6.2 ASSET MANAGEMENT - ASSETS UNDER MANAGEMENT AND ASSETS UNDER ADMINISTRATION In EUR billion 4Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 Assets under Management (AuM) and Assets under Advice and Administration (AuA) Affiliates Proprietary (general account assets) Other affiliates business Third parties Institutional customers Retail customers home markets Retail customers others Total Assets under Management Assets under Advice and Administration In EUR billion 4Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 AuM by investment Equity Fixed income Multi asset Total December 2016 In EUR billion Affiliates Proprietary Other Third Parties Institutional Retail home markets Retail Others Total AuM roll forward Beginning of period Net inflow Acquisition/ Divestments Market performance (incl. FX Impact) and Other End of period In EUR billion 4Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 AuM roll forward Beginning of period Net inflow Acquisition/ Divestments Market performance (incl. FX Impact) and Other End of period NN GROUP FINANCIAL SUPPLEMENT 4Q

32 2.7.1 ANALYSIS OF RESULTS: OTHER Analysis of results Interest on hybrids and debt Investment income and fees Holding expenses Amortisation of intangible assets Holding result Operating result reinsurance business Operating result NN Bank Other results Operating result Non-operating items of which gains/losses and impairments of which revaluations of which market & other impacts Special items before tax Result on divestments Result before tax Taxation Minority interests Net result Key figures Gross premium income Total administrative expenses of which reinsurance business of which NN Bank of which corporate/holding NN Bank common equity Tier 1 ratio phased in 26) 14.0% 14.1% 13.9% 13.3% 14.0% 13.8% 14.2% 13.8% 14.0% 14.0% NN Bank BIS ratio phased in 26) 15.6% 15.9% 15.7% 15.1% 16.0% 15.8% 16.4% 16.2% 15.6% 16.0% Total assets NN Bank 18) Net operating result NN Bank Adjusted allocated equity NN Bank (end of period) Net operating ROE NN Bank 27) 9.8% 10.6% 10.8% 8.7% 7.3% 10.7% 5.1% 3.6% 10.0% 6.9% Total provisions for insurance and investment contracts 18) Allocated equity (end of period) 28) Net operating result 29) Adjusted allocated equity (end of period) 28) Employees (internal FTEs, end of period) 1,770 1,759 1,750 1,772 1,763 1,793 1,811 1,833 1,770 1,763 NN GROUP FINANCIAL SUPPLEMENT 4Q

33 2.7.1 ANALYSIS OF RESULTS: OTHER - EXCLUDING CURRENCY EFFECTS Analysis of results Interest on hybrids and debt Investment income and fees Holding expenses Amortisation of intangible assets Holding result Operating result reinsurance business Operating result NN Bank Other results Operating result Non-operating items of which gains/losses and impairments of which revaluations of which market & other impacts Special items before tax Result on divestments Result before tax Taxation Minority interests Net result Key figures Gross premium income Total administrative expenses of which reinsurance business of which NN Bank of which corporate/holding NN GROUP FINANCIAL SUPPLEMENT 4Q

34 2.7.2 NN BANK - SAVINGS AND DEPOSITS AND MORTGAGES In EUR billion 4Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 FY2016 FY2015 Savings & Deposits - roll forward Beginning of period Deposits Withdrawals / Benefits Net production Acquisition / Divestments / Transfers Market performance / Interest credited FX impact and other End of period In EUR billion 4Q2016 3Q2016 2Q2016 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 FY2016 FY2015 Mortgages - roll forward Beginning of period Production Redemptions Net production Acquisition / Divestments / Transfers Market performance / Interest credited FX impact and other End of period NN GROUP FINANCIAL SUPPLEMENT 4Q

35 2.8.1 ANALYSIS OF RESULTS: JAPAN CLOSED BLOCK VA Analysis of results Investment margin Fees and premium-based revenues Technical margin Operating income non-modelled business Operating income Administrative expenses DAC amortisation and trail commissions Expenses Operating result Non-operating items of which gains/losses and impairments of which revaluations of which market & other impacts Special items before tax Result on divestments Result before tax Taxation Minority interests Net result Key figures 30) Gross premium income Allocated equity ,007 1, Account value 8,201 8,699 9,064 9,125 10,028 10,217 11,610 13,646 8,201 10,028 Net Amount at Risk , IFRS Reserves 674 1,176 1, Number of policies 154, , , , , , , , , ,192 Employees (internal FTEs, end of period) NN GROUP FINANCIAL SUPPLEMENT 4Q