NN Group NV reported first-quarter consolidated net result of €399 million, down 8.4% from €435 million in the same period in 2017.
EPS for the quarter was €1.15, compared to €1.32 a year earlier. The Netherlands-based group said the decline in net result reflects a lower operating result and higher special items, partly compensated by higher nonoperating items.
The Dutch life segment reported a net result of €369 million, up from €283 million in the first quarter of 2017, while the Dutch nonlife division saw a net loss of €30 million, compared to a year-ago net profit of €27 million.
The group's operating result from ongoing business fell year over year to €313 million from €406 million, reflecting an €89 million total impact of a severe storm in January as well as the contribution of Delta Lloyd NV businesses, which the group took over in April 2017. The group noted that the integration of NN Group and Delta Lloyd is well on track.
"In the first quarter of 2018, we have made further progress in integrating Delta Lloyd, with the completion of the legal mergers of the banking activities, asset management companies, and the life businesses in Belgium," CEO Lard Friese said.
Gross premium income amounted to €4.49 billion, up from the year-ago €3.40 billion. New sales of life insurance on an annual premium equivalent basis declined on a yearly basis to €547 million from €620 million.
The combined ratio in the Dutch nonlife segment reached 106.3% in the first quarter, compared to 95.9% in the year-ago period. Excluding the impact of the January storm, the combined ratio was 98.6%.
First-quarter net operating return on equity decreased year over year to 7.3% from 9.9%.
The group's Solvency II ratio stood at 213% at the end of March, compared to 199% at the end of 2017.
