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2016-02-25

NN Group NV: NN Group reports 4Q15 and 2015 results

2015 operating result up 32%; Solvency II ratio at 239%

* 4Q15 operating result ongoing business of EUR 250 million, down 3.6% from
4Q14. Full-year 2015 operating result ongoing business of EUR 1,435
million, up 32.2%, with almost all segments reporting improved results
* Net result of EUR 360 million, up 82.2% from 4Q14. Full-year 2015 net
result up to EUR 1,565 million from EUR 588 million in 2014
* Cost savings in the Netherlands of EUR 15 million in 4Q15 bringing the
expense base down to EUR 803 million
* Strong capital position: Solvency II ratio at 239% at 4Q15 based on the
Partial Internal Model, after deduction of the proposed final 2015 dividend
of EUR 341 million
* Holding company cash capital higher at EUR 1,953 million, reflecting free
cash flow at the holding company for full-year 2015 of EUR 1,366 million
and EUR 849 million returned to shareholders in the form of dividends and
share buybacks
* Final 2015 dividend proposal of EUR 1.05 per ordinary share, or EUR 341
million in total, bringing the full-year 2015 dividend to EUR 1.51 per
ordinary share
* Full-year 2015 value of new business (VNB) at EUR 202 million, up 13.1%.
New sales (APE) EUR 258 million, down 4.3% from 4Q14, at constant
currencies, reflecting focus on profitable growth. Full-year 2015 sales
down 3.1% to EUR 1,295 million, at constant currencies
* AuM at Asset Management EUR 187 billion, down 1.5% from 3Q15

Statement of Lard Friese, CEO

'We are pleased with the strong set of results for the fourth quarter and
full-year 2015, as this demonstrates our steady progress in achieving our
objectives to improve earnings and generate capital.

With around 11,500 employees, we aim to offer our customers value for money,
with an approach that is committed, straightforward and personal. The process
of rebranding our company to NN and our brand promise "You Matter" provides
us with a clear and recognisable identity in all of the markets where we
operate and unites our businesses and colleagues. The progress we have made
on these fronts is reflected in higher employee engagement and Net Promotor
Scores. Our continued focus on delivering excellent service to our customers,
innovating our products and improving our business mix is reflected in a
13.1% increase of the value of new business to EUR 202 million in 2015.

As we continue to deliver on our medium-term objectives, there are areas where
additional focus is needed. We are taking measures to improve the results of
the Non-life business through better underwriting performance and a further
reduction of expenses. We have already made progress by improving the claims
handling processes and fine-tuning premium rates but there is still more to
do. The challenging market environment has prompted us to sharpen the
strategic focus of our asset management business for which we have taken a
restructuring provision of EUR 13 million in the fourth quarter of 2015.

The capital generation of our businesses remains solid and our NN Group
Solvency II ratio was a strong 239% at the end of 2015, based on our Partial
Internal Model which was approved by the Dutch regulator in December 2015. We
will propose a final 2015 dividend of EUR 1.05 per ordinary share at our
Annual General Meeting of Shareholders on 2 June 2016. Together with the
interim dividend paid in September 2015, this represents a pay-out ratio of
41% of the 2015 full-year net operating result of the ongoing business, and
an increase of 32% compared with the annualised 2014 dividend per ordinary
share.

In January 2016, we completed a EUR 250 million share buyback when ING Group
sold down part of its shareholding in NN Group. Furthermore ING exchanged the
final tranche of mandatory exchangeable subordinated notes of the three
anchor investors into ordinary shares in NN Group and cash, bringing ING's
stake in NN Group to 14.1% of outstanding shares.

In 2016 we will build on our track record as we continue to focus on our
financial targets while delivering an excellent customer experience, and
achieve our ambition to be a company that truly matters in the lives of our
stakeholders.'

NN Group key figures

----------------------------------------------------------------------------------------------------
| In EUR million 4Q15 4Q14 Change FY15 FY14 Change |
| |
| Operating result ongoing business 250 260 -3.6% 1,435 1,086 32.2% |
| Net result 360 197 82.2% 1,565 588 166.1% |
| Net operating ROE 7.5% 7.6% 10.8% 8.6% |
| IGD Solvency I ratio1) 320% 300% 320% 300% |
| Solvency II ratio1) 239% 239% |
| New sales life insurance (APE) 258 264 -2.2% 1,295 1,315 -1.5% |
| Asset Management AuM (end of period, in EUR billion)2) 187 195 -4.2% 187 195 -4.2% |
----------------------------------------------------------------------------------------------------
1) The solvency ratios are not final until filed with the regulators. SII
ratio is based on the partial internal model.

2) AuM include the mortgage portfolio managed on behalf of NN Life and NN
Non-life since 2Q14. The comparative figures have been restated accordingly.

Strategy and business highlights

NN Group's strategy is to deliver an excellent customer experience based on
great service and long-term relationships. We aim to achieve this by offering
transparent products and services that serve our customers' lifetime needs.
We do this by making our multi-access distribution network available to
customers wherever and whenever they want, and by maintaining effective
operations that deliver excellent customer service.

Netherlands Life

Netherlands Life aims to benefit from its strong position in the pension
market and selectively capture growth opportunities in the Dutch market,
driven by the shift from defined benefit (DB) to defined contribution (DC)
pension schemes. As part of the pension services, a social media campaign
featuring retirees was recently launched in the Netherlands, with the aim of
increasing pension awareness and encouraging people to think about pension
planning. Furthermore AZL, NN Life's pension administrator, and NN Investment
Partners launched a General Pension Fund (Algemeen Pensioenfonds or 'APF') in
December 2015 ahead of the changes in regulations which became effective in
January 2016. To realise its financial targets, Netherlands Life focuses on
reducing expenses and gradually shifting to higher-yielding assets, such as
mortgages and loans, in order to offset the negative impact of lower interest
rates on the investment margin.

Netherlands Non-life

Netherlands Non-life aims to improve underwriting performance and to expand in
specific market segments where there are clear opportunities for profitable
growth. The continuing focus of the Non-life business on customer centricity
and transparent customer communication has been rewarded by higher customer
loyalty as measured by its gradually increasing Net Promotor Scores (NPS). An
example of good communication is the policy conditions of the Home Insurance
Product, which took second place in the National Writing Contest. Non-life
not only focuses on exceeding customers' expectations, it also puts great
effort into further improving its relationships with intermediaries,
resulting in high satisfaction scores for the products and services of Movir,
according to Kien (a market research company). Adfiz, another external
benchmark, confirmed this success, with Movir receiving the award for 'The
best performing D&A insurer' for the fifth year in a row and NN Non-life
climbing in the rankings as the second best all-round intermediary insurer.

Insurance
Europe

Insurance Europe aims to grow profitably through disciplined capital
allocation and by leveraging its significant distribution platform. It
continues to shift its business mix towards capital-light products and
reposition its savings and retirement products in response to the low
interest rate environment, changing regulations and customer behaviour. Spain
recently launched Growing Guarantee savings products, which respond to the
needs of our customers by guaranteeing their investment and offering upside
potential, while at the same time being capital-light products that are less
sensitive to interest rates. Poland adapted its flagship savings product to
changing regulation while simultaneously improving the customer proposition
with extensive protection cover and added services such as medical
assistance. The Insurance Europe businesses will continue to enhance the
customer experience, supported by new products and further digitalisation.

Japan Life

Japan Life continues to drive value through product innovation and expanding
its distribution. In the fourth quarter of 2015, corporate-owned life
insurance (COLI) protection sales increased by 56% at constant currencies
compared with the fourth quarter of 2014, driven by new product launches,
such as a new term product addressing death and severe disability needs of
SME owners up to age 90, new training programmes and new sales tools.
Bancassurance-COLI sales increased by 39% in the quarter, driven by the
continuing expansion of the bank distribution network. In December 2015,
Japan Life received the highest rating for its after-sales call centre from
the Help Desk Institute-Japan for the third consecutive year. The call centre
was awarded for its ability to provide appropriate solutions to businesses
and for the extensive knowledge of its staff leading to an excellent customer
experience.

Asset Management

Assets under Management decreased from EUR 190 billion to EUR 187 billion in
the quarter as the market environment remained challenging. Asset Management
aims to grow its Third-Party business by following a tailored approach for
each client segment. It plans to protect and further expand its leading
position and continues to develop a more distinct range of products. As part
of its strategy enhancement, Asset Management is rationalising and creating
scale in its product range and building on its areas of expertise. Examples
are the Dutch Residential Mortgage Fund, jointly launched by NN Investment
Partners (NN IP) and NN Bank with a first tranche of EUR 165 million of
mortgage loans sold to the fund. NN IP also complemented its successful
multi-asset range with the Multi-Asset High Income fund. The asset manager
aims to create investment awareness among retail clients in its home markets,
and has recently imp...

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