NN GROUP FINANCIAL SUPPLEMENT 4Q2014

Transcription

1 NN GROUP FINANCIAL SUPPLEMENT 4Q2014

2 NN GROUP FINANCIAL SUPPLEMENT 4Q2014 INTRODUCTION The Financial Supplement includes quarterly financial trend data and is published on a quarterly basis. Rounding could cause some small differences. All figures are unaudited. The segment Other comprises of the businesses of NN Bank and ING Re, the holding company and certain other entities. APE is calculated as the sum of annual premiums and 1/10th of regular premiums sold in the period. Client balances, for life insurance and investment management activities, encompass all on or off-balance sheet customer accounts (liability based) on which NN earns a spread or a fee. They include the gross life provisions for both general account and separate account life insurance contracts and off-balance sheet funds managed for institutional investors and (proprietary) pension funds. Client balances are not equal to AuM, as client balances exclude the Company s shareholder s equity and provisions for non-life insurance contracts. This key performance indicator measures the volume of NN s in-force life insurance and investment management business which drives future operating income and results. NN GROUP FINANCIAL SUPPLEMENT 4Q2014 2

3 TABLE OF CONTENTS Consolidated balance sheet: Assets Consolidated balance sheet: Equity and Liabilities Total equity Shareholders' equity reconciliation Capital base - IGD Cash capital position at the holding company Investments Analysis of results: Total Analysis of results: Netherlands Life Analysis of results: Netherlands Non-Life Analysis of results: Insurance Europe Analysis of results: Japan Life Analysis of results: Investment Management Analysis of results: Other Analysis of results: Japan Closed Block VA Client balances: Netherlands Life Client balances: Insurance Europe Client balances: Japan Life Client balances: Investment Management Client balances: Other (NN Bank) Client balances: Japan Closed Block VA Additional information: Administrative expenses in the Netherlands Additional information: Netherlands Non-life Additional information: Insurance Europe key figures by country Additional information: Investment Management Additional information: New business metrics 30 NN GROUP FINANCIAL SUPPLEMENT 4Q2014 3

4 NN GROUP CONSOLIDATED BALANCE SHEET: ASSETS 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar in EUR million ) ) 2) ) 3) 1) 3) 2013 Cash and cash equivalents 7,530 5,529 6,739 8,114 7,155 6,858 7,818 7,243 Financial assets at fair value through P&L 49,549 47,862 44,516 42,360 43,933 44,859 45,540 48,866 - trading assets non-trading derivatives 7,207 5,450 4,436 3,423 3,126 3,342 3,687 4,338 - investments for risk of policyholders 41,221 41,298 38,822 37,683 39,589 40,165 40,693 42,525 - other ,408 Available-for-sale investments 72,277 69,249 67,025 63,684 61,014 64,460 64,798 67,858 - debt securities 65,991 63,295 60,861 57,801 55,394 59,101 59,180 62,345 - equity securities 6,286 5,954 6,164 5,883 5,620 5,359 5,618 5,513 Loans 27,802 28,965 27,111 25,905 25,319 22,076 16,823 16,813 Reinsurance contracts Investments in associates 1,617 1,602 1,575 1,243 1,071 1,162 1,189 1,328 Real estate investments 1,104 1, Property and equipment Intangible assets Deferred acquisition costs 1,403 1,431 1,441 1,411 1,353 2,832 2,878 3,030 Other assets 3,462 3,626 3,945 3,274 3,754 5,835 5,890 6,195 Total assets excluding assets held for sale 165, , , , , , , ,995 Assets held for sale , , ,045 Total assets 165, , , , , , , ,040 1) The figures for this period have been restated to reflect the change in accounting policy, covering the move towards fair value accounting for Guaranteed Minimum Death Benefits for reserves of the Japan Closed Block VA segment as of 1 January The figures in this period have also been restated to reflect the implementation of IFRS 11, which replaced proportional consolidation for joint ventures by equity accounting. 2) Reclassified. In the 30 September 2013 balance sheets, Assets and liabilities held for sale includes the insurance and investment management businesses in Asia excluding NN Group's business in Japan. The assets and liabilities of NN Group's business in Japan are included on a line by line basis. 3) Reclassified. In the 30 June 2013 and 31 March 2013 balance sheets, Assets and liabilities held for sale includes ING US, the insurance and investment management businesses in Asia excluding NN Group's business in Japan. The assets and liablities of NN Group's business in Japan are included on a line by line basis. NN GROUP FINANCIAL SUPPLEMENT 4Q2014 4

5 NN GROUP 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 ) ) 2) ) 3) 1) 3) 2013 Shareholders' equity 20,355 18,344 16,939 14,682 14,062 14,719 22,089 27,114 Minority interests , Undated subordinated notes Total equity 21,417 19,400 16,999 14,754 14,130 14,784 25,114 27,354 Subordinated debt 2,297 2,299 3,287 2,890 2,892 2,894 2,958 2,996 Debt securities in issue Senior debt ,000 1,000 2,000 1,308 1,309 Other borrowed funds 5,467 4,419 3,968 3,243 3,817 2,955 2,687 3,062 Insurance and investment contracts 119, , , , , , , ,466 - life insurance provisions 73,639 73,281 72,569 71,345 67,700 70,625 71,485 74,039 - non-life insurance provisions 3,540 3,670 3,787 3,912 3,584 3,726 3,840 3,955 - provision for risk of policyholders 41,285 41,393 38,869 37,772 39,675 40,259 40,812 42,626 - other Customer deposits 6,981 6,597 6,519 6,190 5,769 4, Financial liabilities at fair value through P&L 3,142 2,529 1,859 1,396 1,843 1,782 1,920 2,205 - non-trading derivatives 3,142 2,529 1,859 1,396 1,843 1,782 1,920 2,205 Other liabilities 6,540 5,421 4,995 4,408 4,071 5,887 5,877 6,044 Total liabilities excluding liabilities held for sale 144, , , , , , , ,777 Liabilities held for sale , , ,909 Total liabilities 144, , , , , , , ,686 Total equity and liabilities 165, , , , , , , ,040 1) The figures for this period have been restated to reflect the change in accounting policy, covering the move towards fair value accounting for Guaranteed Minimum Death Benefits for reserves of the Japan Closed Block VA segment as of 1 January The figures in this period have also been restated to reflect the implementation of IFRS 11, which replaced proportional consolidation for joint ventures by equity accounting. 2) Reclassified, in the 30 September 2013 reclassified balance sheets, Assets and liabilities held for sale includes the insurance and investment management businesses in Asia excluding NN Group's business in Japan. The assets and liabilities of NN Group's business in Japan are included on a line by line basis. 3) Reclassified, in the 30 June 2013 and 31 March 2013 reclassified balance sheets Assets and liabilities held for sale includes ING US, the insurance and investment management businesses in Asia excluding NN Group's business in Japan. The assets and liabilities of NN Group's business in Japan are included on a line by line basis. NN GROUP FINANCIAL SUPPLEMENT 4Q2014 5

6 NN GROUP 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 12,098 12,098 12,140 11,290 11,605 10,711 17,750 17,750 Revaluation reserve equity securities 1, ,091 1,097 1, Revaluation reserve debt securities 9,044 7,006 5,489 4,110 2,807 3,674 4,831 8,504 Revaluation reserve crediting to life policyholders -5,529-4,542-3,858-3,199-2,579-2,812-3,507-5,214 Revaluation reserve cashflow hedge 4,464 3,791 3,447 3,039 2,726 2,872 3,076 3,391 Other revaluation reserve Remeasurement of the net defined benefit asset/liability , Currency translation reserve Retained earnings and other reserves ,147-1, ,328 Shareholders' equity 20,355 18,344 16,939 14,682 14,062 14,719 22,089 27,114 Minority interests , Undated Subordinated notes Total equity 21,417 19,400 16,999 14,754 14,130 14,784 25,114 27,354 Shareholders' equity per share in EUR Shares outstanding in the market (in million) ) The figures for this period have been restated to reflect the change in accounting policy, covering the move towards fair value accounting for Guaranteed Minimum Death Benefits for reserves of the Japan Closed Block VA segment as of 1 January NN GROUP FINANCIAL SUPPLEMENT 4Q2014 6

7 NN GROUP 1.3 SHAREHOLDERS' EQUITY RECONCILIATION In EUR million (Allocated) Shareholders' equity Less: Revaluation reserves 1) Plus: Minority interest Adjusted (allocated) equity Netherlands Life 14,255 7, ,678 Netherlands Non-life Insurance Europe 2, ,593 Japan Life 1, ,146 Investment Management Other 2) Ongoing business 19,343 9, ,301 Japan Closed Block VA 1, ,012 Discontinued operations NN Group 20,355 9, ,313 1) Revaluation reserves for debt securities, equity securities and property in own use, the cash flow hedge reserve, the related crediting to policyholders and interest on undated subordinated notes. 2) The segment Other comprises of the allocated equity of NN Bank, ING Re and the cash capital position, other assets and debt of the holding company. NN GROUP FINANCIAL SUPPLEMENT 4Q2014 7

8 NN GROUP 1.4 CAPITAL BASE - IGD 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar In EUR million Shareholders' equity 20,355 18,344 16,939 14,682 14,062 14,719 22,089 27,114 Qualifying undated subordinated debt 1) 1,823 1,823 1,809 2,394 2,394 2,394 2,455 2,490 Qualifying dated subordinated debt 1) 1,000 1,000 1, Required regulatory adjustments -9,005-7,934-7,288-6,110-5,501-6,421-1,664-5,869 Total capital base 2) (a) 14,172 13,233 12,460 10,966 10,955 10,691 22,881 23,736 EU required capital (b) 4,683 4,683 4,578 4,468 4,385 5,132 8,981 9,347 NN Group IGD Solvency I ratio 3) (a/b) 303% 283% 272% 245% 250% 208% 255% 254% 1) Subordinated debt included at notional value in the IGD capital base. 2) The 31 March 2014 IGD capital base has been updated as the eligible and dated hybrids are capped at 50% and 25% respectively of the EU required capital. The 31 December 2013 IGD capital base has been updated to reflect the move towards fair value accounting for the Guaranteed Minimum Death Benefits reserves of the Japan Closed Block VA segment and that the eligible and dated hybrids are capped at 50% and 25% respectively of the EU required capital. 3) The 2014 solvency ratios are not final until filed with the regulators. NN GROUP FINANCIAL SUPPLEMENT 4Q2014 8

9 NN GROUP 1.5 CASH CAPITAL POSITION AT THE HOLDING COMPANY In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 FY2014 Cash capital position - beginning of period 1,184 1, ,363 1,363 Cash divestment proceeds Dividends from subsidiaries 1) Capital injections into subsidiaries 2) ,313 Other 3) Free cash flow at the holding Capital flows from / (to) shareholders Increase / (decrease) in debt and loans Cash capital position - end of period 1,413 1,184 1, ,413 Free cash flow at the holding IPO related capital transactions 4) Adjusted free cash flow at the holding Note: cash capital is defined as net current assets available at the holding company 1) Includes interest on subordinated loans issued by subsidiaries to the holding company. 2) Includes the change of subordinated loans issued by subsidiaries to the holding company. 3) Includes interest on subordinated loans and debt, holding company expenses and other cash flows. 4) Consists of the IPO related capital strengthening of NN Life by EUR 1,050 million through subordinated debt and EUR 176 million of cash proceeds received from the divestment of SulAmérica which were upstreamed to ING Group. NN GROUP FINANCIAL SUPPLEMENT 4Q2014 9

10 NN GROUP 1.6 INVESTMENTS 31 December 2014 Loans and Investments AFS FV through P&L Total advances In EUR billion B/S value B/S value Reval after tax B/S value B/S value Reval after tax Total Debt securities of which Government bonds of which Covered bonds of which Financial institutions of which Corporate bonds of which ABS Public Equity securities Other Equity securities Total Investments NN GROUP FINANCIAL SUPPLEMENT 4Q

11 NN GROUP 2.1 ANALYSIS OF RESULTS: TOTAL In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 1) 3Q2013 1) 2Q2013 1) 1Q2013 1) FY2014 FY2013 1) Analysis of results Netherlands Life Netherlands Non-life Insurance Europe Japan Life Investment Management Other Operating result ongoing business , Non-operating items ongoing business of which gains/losses and impairments of which revaluations of which market & other impacts Japan Closed Block VA Insurance Other Special items before tax Result on divestments Result before tax from continuing operations Taxation Net result from continuing operations Net result from discontinued operations Minority interests Net result , Shares outstanding in the market (in million) Net result per share in EUR 2) New business ongoing business Single premiums ,790 1,741 Regular premiums ,136 1,053 New sales life insurance (APE) ,315 1,227 Value of new business Internal rate of return 10.8% 9.7% NN GROUP FINANCIAL SUPPLEMENT 4Q

12 NN GROUP 2.1 ANALYSIS OF RESULTS: TOTAL In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 1) 3Q2013 1) 2Q2013 1) 1Q2013 1) FY2014 FY2013 1) Key figures ongoing business Gross premium income 1,821 2,047 1,977 3,489 1,917 1,959 2,016 3,633 9,334 9,525 Total administrative expenses ,758 1,807 Cost/income ratio (Administrative expenses/operating income) 37.6% 35.6% 37.0% 34.5% 38.1% 36.5% 36.3% 37.3% 36.2% 37.1% Combined ratio (Netherlands Non-life) 3) 99.4% 99.6% 98.5% 100.2% 103.6% 97.4% 98.2% 106.5% 99.4% 101.5% Investment Management Assets under Management 4) Life general account invested assets 4) Investment margin/life general account invested assets (in bps) 5) Total provisions for insurance and investment contracts 4) of which for risk policyholder 4) NN Life Solvency I ratio 6) 260% 252% 250% 235% 223% 183% 230% 204% 260% 223% Net operating result 7) Adjusted allocated equity (end of period) 8) 10,301 9,921 9,605 8,458 8,989 7,158 7,577 7,542 10,301 8,989 Net operating ROE 9) 7.6% 8.3% 8.7% 9.9% 7.4% 8.3% 10.7% 9.0% 8.6% 8.9% Key figures Japan Closed Block VA Account value 13,248 14,313 14,425 14,175 14,687 15,792 16,104 17,205 13,248 14,687 Number of policies 294, , , , , , , , , ,306 Key figures Total NN Group IGD Solvency I ratio 6)10) 303% 283% 272% 245% 250% 208% 255% 254% 303% 250% Total assets 4) Shareholders' equity 20,355 18,344 16,939 14,682 14,062 14,719 22,089 27,114 20,355 14,062 Employees (FTEs, end of period) 11,659 11,854 11,913 12,129 12,245 12,519 12,291 12,509 11,659 12,245 1) The figures of this period have been restated to reflect the change in accounting policy, i.e., the move towards fair value accounting for Guaranteed Minimum Death Benefits reserves of the Japan Closed Block VA segment as of 1 January ) Net result per share in Q22014 is calculated based on the NN Group shares outstanding as of 7 July ) Excluding Mandema and Zicht broker businesses. 4) End of period, in EUR billion. 5) Four-quarter rolling average. 6) The 2014 solvency ratios are not final until filed with the regulators. 7) Net operating result of the ongoing business, adjusted for the accrued coupon on undated notes classified in equity. 8) Allocated equity, adjusted for revaluation reserves and excluding undated notes classified in equity. 9) Net operating ROE is calculated as the (annualised) net operating result of the ongoing business, adjusted for the accrued coupon on undated notes classified in equity divided by the average allocated equity of the ongoing business adjusted for revaluation reserves and excluding undated notes classified in equity. 10) The 31 March 2014 IGD Solvency I ratio has been updated as the eligible and dated hybrids are capped at 50% and 25% respectively of the EU required capital. The 31 December 2013 IGD Solvency I ratio has been updated to reflect the move towards fair value accounting for the Guaranteed Minimum Death Benefits reserves of the Japan Closed Block VA segment and that the eligible and dated hybrids are capped at 50% and 25% respectively of the EU required capital. Note: Operating results are non-gaap measures. These are derived from figures according to IFRS-EU by excluding impact from divestments, discontinued operations and special items, gains/losses and impairments, revaluations and market & other impacts. NN GROUP FINANCIAL SUPPLEMENT 4Q

13 NN GROUP 2.2 ANALYSIS OF RESULTS: NETHERLANDS LIFE In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Analysis of results Investment margin Fees and premium based revenues Technical margin Income non-modelled life business Operating income ,136 1,255 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 Internal rate of return 10.5% 4.5% Key figures Gross premium income , ,524 3,084 3,240 Total administrative expenses Cost/income ratio (Administrative expenses/operating income) 40.0% 37.3% 41.8% 41.9% 35.4% 36.5% 34.8% 44.0% 40.2% 37.6% Life general account invested assets 1) Investment margin/life general account invested assets (in bps) 2) Total provisions for insurance and investment contracts 1) of which for risk policyholder 1) Allocated equity (end of period) 14,255 12,386 11,265 10,243 9,491 9,764 9,865 10,615 14,255 9,491 NN Life Solvency I ratio 3) 260% 252% 250% 235% 223% 183% 230% 204% 260% 223% Net operating result Adjusted allocated equity (end of period) 6,678 6,485 6,291 6,197 6,325 6,418 6,381 6,322 6,678 6,325 Net operating ROE 7.3% 7.6% 8.1% 7.8% 8.1% 8.1% 10.4% 6.7% 7.7% 8.3% Employees (FTEs, end of period) 2,174 2,314 2,366 2,433 2,571 2,602 2,646 2,693 2,174 2,571 1) End of period, in EUR billion. 2) Four-quarter rolling average. 3) The 2014 NN Life Solvency I ratios are not final until filed with the regulators. NN GROUP FINANCIAL SUPPLEMENT 4Q

14 NN GROUP 2.3 ANALYSIS OF RESULTS: NETHERLANDS NON-LIFE In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Analysis of results Earned premiums ,525 1,546 Investment income Other income Operating income ,640 1,644 Claims incurred, net of reinsurance ,049 1,077 Acquisition costs Administrative expenses Acquisition costs and administrative expenses Expenditure ,516 1,569 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 ,566 1,582 Total administrative expenses Combined ratio 1) 99.4% 99.6% 98.5% 100.2% 103.6% 97.4% 98.2% 106.5% 99.4% 101.5% of which Claims ratio 1) 68.7% 69.5% 66.9% 70.1% 72.7% 66.3% 65.5% 73.9% 68.8% 69.7% of which Expense ratio 1) 30.7% 30.1% 31.6% 30.1% 30.9% 31.1% 32.7% 32.6% 30.6% 31.8% Total insurance provisions 2) Allocated equity (end of period) Net operating result Adjusted allocated equity (end of period) Net operating ROE 27.3% 25.8% 28.9% 13.7% 5.8% 16.1% 31.7% -3.3% 23.3% 13.3% Employees (FTEs, end of period) 1,708 1,752 1,748 1,911 1,999 2,029 2,049 2,073 1,708 1,999 1) Excluding Mandema and Zicht broker businesses. 2) End of period, in EUR billion. NN GROUP FINANCIAL SUPPLEMENT 4Q

15 NN GROUP 2.4 ANALYSIS OF RESULTS: INSURANCE EUROPE In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Analysis of results Investment margin Fees and premium based revenues Technical margin Income non-modelled life business Life Insurance operating income Administrative expenses DAC amortisation and trail commissions Life Insurance expenses Life Insurance operating result Non-life operating result 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 ,094 1,005 Regular premiums New sales life insurance (APE) Value of new business Internal rate of return 9.3% 9.7% Key figures Gross premium income ,327 2,344 Total administrative expenses (Life & Non-life) Cost/income ratio (Administrative expenses/operating income) 40.5% 37.9% 36.8% 34.8% 34.8% 34.5% 36.6% 39.1% 37.7% 36.3% Life general account invested assets 1) Investment margin/life general account invested assets (in bps) 2) Total provisions for insurance and investment contracts 1) of which for risk policyholder 1) Assets under management pensions 1)3) Allocated equity (end of period) 2,103 2,091 1,997 2,031 1,898 2,024 1,972 2,077 2,103 1,898 Net operating result Adjusted allocated equity (end of period) 1,593 1,597 1,526 1,654 1,601 1,742 1,711 1,796 1,593 1,601 Net operating ROE 8.0% 8.9% 7.9% 8.9% 7.2% 8.7% 9.1% 7.8% 8.4% 8.2% Employees (FTEs, end of period) 4,085 4,069 4,046 4,039 4,016 4,043 4,056 4,084 4,085 4,016 1) End of period, in EUR billion. 2) Four-quarter rolling average. 3) The numbers shown under AuM are client balances which exclude IFRS shareholder's equity related to the respective pension businesses and include the assets under administration. NN GROUP FINANCIAL SUPPLEMENT 4Q

16 NN GROUP 2.5 ANALYSIS OF RESULTS: JAPAN LIFE In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Analysis of results 1) Investment margin Fees and premium based revenues Technical margin Income non-modelled life 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 1) Single premiums Regular premiums New sales life insurance (APE) Value of new business Internal rate of return 14.3% 17.3% Key figures 1) Gross premium income ,323 2,322 Total administrative expenses Cost/income ratio (Administrative expenses/operating income) 34.2% 21.3% 26.0% 16.9% 35.4% 25.0% 25.5% 16.3% 23.0% 23.8% Life general account invested assets 2) Total provisions for insurance and investment contracts 2) of which for risk policyholder 2) Allocated equity (end of period) 1,579 1,496 1,438 1,354 1,259 1,315 1,247 1,660 1,579 1,259 Net operating result Adjusted allocated equity (end of period) 1,146 1,194 1,161 1,129 1,074 1,113 1,099 1,353 1,146 1,074 Net operating ROE 2.5% 8.4% 5.9% 15.3% 2.4% 7.7% 5.8% 16.1% 7.9% 8.4% Employees (FTEs, end of period) ) JPY/EUR average quarterly fx rates: (4Q2014), (3Q2014), (2Q2014), (1Q2014), (4Q2013), (3Q2013), (2Q2013) and (1Q2013) and JPY/EUR end of period fx rates: (4Q2014), (3Q2014), (2Q2014), (1Q2014), (4Q2013), (3Q2013), (2Q2013) and (1Q2013). 2) End of period, in EUR billion. NN GROUP FINANCIAL SUPPLEMENT 4Q

17 NN GROUP 2.6 ANALYSIS OF RESULTS: INVESTMENT MANAGEMENT In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 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 1) Key figures Total administrative expenses Cost/income ratio (Administrative expenses/operating income) 68.2% 66.7% 68.1% 66.9% 74.8% 70.4% 65.0% 71.8% 67.5% 70.6% Net inflow Asets under Management (in EUR billion) Assets under Management 2) Fees/average Assets under Management (in bps) Allocated equity (end of period) Net operating result Adjusted allocated equity (end of period) Net operating ROE 31.5% 32.9% 31.4% 34.6% 22.2% 26.3% 34.3% 23.7% 32.4% 26.7% Employees (FTEs, end of period) 1,151 1,135 1,139 1,145 1,134 1,144 1,154 1,187 1,151 1,134 1) Excluding the Net result from discontinued operations. 2) End of period, in EUR billion. NN GROUP FINANCIAL SUPPLEMENT 4Q

18 NN GROUP 2.7 ANALYSIS OF RESULTS: OTHER In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 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 NN Bank common equity Tier 1 ratio phased in 14.1% 14.6% 15.7% 16.7% 16.4% 21.4% 37.1% 32.6% 14.1% 16.4% Total assets NN Bank 1) Total provisions for insurance and investment contracts 1) Allocated equity (end of period) 2) ,220-1,104-4,001-3,331-3, ,104 Net operating result 3) Adjusted allocated equity (end of period) 2) , ,988-2,483-2, Employees (FTEs, end of period) 1,838 1,875 1,884 1,868 1,777 1,929 1,594 1,688 1,838 1,777 1) End of period, in EUR billion. 2) (Adjusted) allocated equity excluding undated notes classified in equity. 3) Net operating result is adjusted for the accrued coupon on undated notes classified in equity. NN GROUP FINANCIAL SUPPLEMENT 4Q

19 NN GROUP 2.8 ANALYSIS OF RESULTS: JAPAN CLOSED BLOCK VA In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 2) 3Q2013 2) 2Q2013 2) 1Q2013 2) FY2014 FY2013 2) Analysis of results 1) Investment margin Fees and premium based revenues Technical margin Income non-modelled life 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 1)3) Gross premium income Allocated equity 1,012 1,135 1,061 1,058 1,071 1,466 1,387 1,619 1,012 1,071 Account value 13,248 14,313 14,425 14,175 14,687 15,792 16,104 17,205 13,248 14,687 Net Amount at Risk ,448 1,908 2, IFRS Reserves ,068 1,267 1,086 1,808 2,161 2, ,086 Number of policies 294, , , , , , , , , ,306 Employees (FTEs) ) JPY/EUR average quarterly fx rates: (4Q2014), (3Q2014), (2Q2014), (1Q2014), (4Q2013), (3Q2013), (2Q2013) and (1Q2013) and JPY/EUR end of period fx rates: (4Q2014), (3Q2014), (2Q2014), (1Q2014), (4Q2013), (3Q2013), (2Q2013) and (1Q2013). 2) The figures of this period have been restated to reflect the change in accounting policy, i.e., the move towards fair value accounting for Guaranteed Minimum Death Benefits reserves of the Japan Closed Block VA segment as of 1 January ) End of period except Gross premium income. NN GROUP FINANCIAL SUPPLEMENT 4Q

20 NN GROUP 3.1 CLIENT BALANCES: NETHERLANDS LIFE In EUR billion 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Client Balances included on Balance Sheet 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

21 NN GROUP 3.2 CLIENT BALANCES: INSURANCE EUROPE In EUR billion 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Client Balances included on Balance Sheet Beginning of period Deposits Withdrawals / Benefits Net production Acquisition / Divestments / Transfers Market performance / Interest credited FX impact and other End of period Off Balance Sheet Pension and Mutual Funds business Beginning of period Deposits Withdrawals / Benefits Net production Acquisition / Divestments / Transfers Market performance / Interest credited FX impact and other End of period Total Client Balances 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

22 NN GROUP 3.3 CLIENT BALANCES: JAPAN LIFE In EUR billion 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Client Balances included on Balance Sheet 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

23 NN GROUP 3.4 CLIENT BALANCES: INVESTMENT MANAGEMENT In EUR billion 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Off Balance Sheet Institutional Asset Management Beginning of period Deposits Withdrawals / Benefits Net production Acquisition / Divestments / Transfers 1) Market performance / Interest credited FX impact and other End of period Off Balance Sheet Pension and Mutual Funds business Beginning of period Deposits Withdrawals / Benefits Net production Acquisition / Divestments / Transfers 1) Market performance / Interest credited FX impact and other End of period Total Client Balances Beginning of period Deposits Withdrawals / Benefits Net production Acquisition / Divestments / Transfers 1) Market performance / Interest credited FX impact and other End of period ) As of 3Q2014 the AuM sold via ING Bank channel is recognised in the client balances, as NN Group is reported Held for Sale by ING Group. NN GROUP FINANCIAL SUPPLEMENT 4Q

24 NN GROUP 3.5 CLIENT BALANCES: OTHER (NN BANK) In EUR billion 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Client Balances included on Balance Sheet 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

25 NN GROUP 3.6 CLIENT BALANCES: JAPAN CLOSED BLOCK VA In EUR billion 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Client Balances included on Balance Sheet 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 NN GROUP 4.1 ADDITIONAL INFORMATION: ADMINISTRATIVE EXPENSES IN THE NETHERLANDS In EUR million FY2014 FY2013 Change Netherlands Life Netherlands Non-Life Corporate / holding of which segment Other excluding NN Bank and reinsurance business of which Insurance Other Total 877 1, NN GROUP FINANCIAL SUPPLEMENT 4Q

27 NN GROUP 4.2 ADDITIONAL INFORMATION: NETHERLANDS NON-LIFE In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Gross premium income by line of business Disability & Accident Fire Marine & Aviation Motor Miscellaneous Indirect business Property & Casualty Total ,566 1,582 In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Operating result by line of business Disability & Accident Fire Marine & Aviation Motor Miscellaneous Indirect business Property & Casualty Mandema and Zicht broker businesses Total Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Combined ratios Disability & Accident and Property & Casualty 1) Disability & Accident Combined ratio 101.4% 95.7% 94.5% 97.7% 94.0% 98.7% 102.4% 111.6% 97.3% 101.9% of which Claims ratio 78.2% 73.4% 71.8% 75.1% 70.9% 75.7% 77.3% 88.0% 74.6% 78.2% of which Expense ratio 23.2% 22.3% 22.7% 22.6% 23.1% 23.0% 25.1% 23.6% 22.7% 23.7% Property & Casualty Combined ratio 97.8% 102.6% 101.9% 102.4% 110.9% 96.3% 95.1% 102.2% 101.0% 101.2% of which Claims ratio 61.3% 66.3% 63.5% 66.2% 73.5% 58.8% 56.8% 62.2% 64.2% 62.9% of which Expense ratio 36.5% 36.3% 38.4% 36.3% 37.3% 37.5% 38.3% 40.0% 36.9% 38.2% Total Combined ratio 99.4% 99.6% 98.5% 100.2% 103.6% 97.4% 98.2% 106.5% 99.4% 101.5% of which Claims ratio 68.7% 69.5% 66.9% 70.1% 72.7% 66.3% 65.5% 73.9% 68.8% 69.7% of which Expense ratio 30.7% 30.1% 31.6% 30.1% 30.9% 31.1% 32.7% 32.6% 30.6% 31.8% 1) Excluding Mandema and Zicht broker businesses. NN GROUP FINANCIAL SUPPLEMENT 4Q

28 NN GROUP 4.3 ADDITIONAL INFORMATION: INSURANCE EUROPE KEY FIGURES BY COUNTRY In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Gross premium income by country Belgium Poland Czech Republic Hungary Spain Other Insurance Europe ,327 2,344 In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 Operating result by country Belgium Poland Czech Republic Hungary Spain Other Insurance Europe In EUR million 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 FY2014 FY2013 New sales (APE) by country Belgium Poland Czech Republic Hungary Spain Other Insurance Europe NN GROUP FINANCIAL SUPPLEMENT 4Q

29 NN GROUP 4.4 ADDITIONAL INFORMATION: INVESTMENT MANAGEMENT In EUR billion 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 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 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 AUM by investment Equity Fixed income Money Market Total In EUR billion Affiliates Proprietary Other Third Parties Institutional Retail home markets Retail Others Total AUM rollforward Beginning of period Net inflow Acquisition/ Divestments Market performance (incl. FX Impact) and Other End of period In EUR billion 4Q2014 3Q2014 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013 1Q2013 AUM rollforward Beginning of period Net inflow Acquisition/ Divestments Market performance (incl. FX Impact) and Other End of period NN GROUP FINANCIAL SUPPLEMENT 4Q

30 NN GROUP 4.5 ADDITIONAL INFORMATION: NEW BUSINESS METRICS In EUR million FY2014 FY2013 NN Group Value of new business Present value of new business premiums 7,280 6,615 New business margin 1) 2.7% 2.0% Internal rate of return 10.8% 9.7% Payback period (in years) 9 10 In EUR million FY2014 FY2013 Netherlands Life Value of new business Present value of new business premiums New business margin 1) 2.7% -6.3% Internal rate of return 10.5% 4.5% Payback period (in years) In EUR million FY2014 FY2013 Insurance Europe Value of new business Present value of new business premiums 3,313 3,188 New business margin 1) 2.4% 3.0% Internal rate of return 9.3% 9.7% Payback period (in years) 10 9 In EUR million FY2014 FY2013 Japan Life Value of new business Present value of new business premiums 3,028 2,589 New business margin 1) 3.1% 3.3% Internal rate of return 14.3% 17.3% Payback period (in years) 7 8 1) Value of new business as a percentage of Present value of new business premiums. NN GROUP FINANCIAL SUPPLEMENT 4Q

31 IMPORTANT LEGAL INFORMATION NN Group s Annual Accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union ( IFRS-EU ). In preparing the financial information in this document, the same accounting principles are applied as in the NN Group N.V. condensed consolidated interim financial information for the period ended 30 June The Annual Accounts for 2014 are in progress and may be subject to adjustments from subsequent events. All figures in this document are unaudited. Small differences are possible in the tables due to rounding. Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation: (1) changes in general economic conditions, in particular economic conditions in NN Group s core markets, (2) changes in performance of financial markets, including developing markets, (3) consequences of a potential (partial) break-up of the euro, (4) the implementation of the EC Restructuring Plan, (5) changes in the availability of, and costs associated with, sources of liquidity as well as conditions in the credit markets generally, (6) the frequency and severity of insured loss events, (7) changes affecting mortality and morbidity levels and trends, (8) changes affecting persistency levels, (9) changes affecting interest rate levels, (10) changes affecting currency exchange rates, (11) changes in investor, customer and policyholder behaviour, (12) changes in general competitive factors, (13) changes in laws and regulations, (14) changes in the policies of governments and/or regulatory authorities, (15) conclusions with regard to accounting assumptions and methodologies, (16) changes in ownership that could affect the future availability to us of net operating loss, net capital and built-in loss carry forwards, (17) changes in credit and financial strength ratings, (18) NN Group s ability to achieve projected operational synergies and (19) the other risks and uncertainties detailed in the Risk Factors section contained in recent public disclosures made by NN Group and/or related to NN Group (such as the most recent annual report of ING Groep N.V.). Any forward-looking statements made by or on behalf of NN Group speak only as of the date they are made, and, NN Group assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities. NN GROUP FINANCIAL SUPPLEMENT 4Q