Third quarter 2017 results

16 November 2017
Highlights
Lard Friese, CEO
Highlights 3Q17
Operating result Net result • Higher operating result ongoing business driven
by improved results at most segments, the
EUR 431m EUR 734m contribution of Delta Lloyd of EUR 51m and non-
recurring benefits in the segment Other, partly
(3Q16: EUR 319m) (3Q16: EUR 436m) offset by lower results at Netherlands Non-life

Net Operating ROE Holdco cash capital • Net result up at EUR 734m reflecting improved
operating result and higher capital gains
10.6% EUR 1.8bn • APE up 33% from 3Q16 at constant currencies,
(3Q16: 8.1%) (2Q17: EUR 1.7bn) driven by higher sales in Netherlands Life,
Insurance Europe and Japan Life
Solvency II ratio Financial leverage1
• Strong capital position: Solvency II ratio
204% 28.1% increased to 204%; holding company cash
capital at EUR 1,789m, driven by EUR 332m of
(2Q17: 196%) (2Q17: 30.8%) dividends from subsidiaries

1. Pro-forma at 3Q17 after repayment of EUR 575m senior notes in November 2017

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Progressing on integration while retaining our
focus on our customers and business
Integration
• Brand transformation from Delta Lloyd to NN started
• Agreements reached with trade unions and Works Councils
in the Netherlands on Reorganisation Framework
Capturing growth
• NN Hayat ve Emeklilik in Turkey introduced a pension
product to capture demand following new legislation
• NN Bank issued a EUR 500m conditional pass-through
covered bond to support funding of further growth
Multi‐access distribution
• Higher Bancassurance COLI sales for Japan Life driven by
further expansion of the bank distribution network and
the Sumitomo partnership which started in April 2017
• NN Hellas renewed its bancassurance agreement with
Pireaus Bank for another 10 years
Innovation
• Smart Agent Mobile App, a tool to support sales agents
in their daily activities, currently being piloted in Greece
• Netherlands Non-life introduced a new car insurance,
‘Roxo’, using machine learning to calculate risk premiums
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Further reduction of the expense base
Administrative expense base1 (in EURm)
• Continued focus on cost
-86 synergies at Netherlands Life,
2,024 Netherlands Non-life, Asset
Management, the segment
Other and Belgium

-36
• Administrative expenses
reduced by EUR 64m in 3Q17,
-23 5 1
or EUR 86m in 9M17, bringing
-17 1,938 the expense base down to
-17 EUR 1,938m
FY16 NL Life NL Non- Belgium Asset Bank Corporate/ 3Q17
expense life Management Holding expense • New cost reduction target to
base base2 be announced at Capital
Markets Day on 30 November
1. Netherlands Life, Netherlands Non-life, Belgium, Asset Management, Banking business and Corporate/Holding entities
2. Expense base calculated on a last 12-months basis

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3Q17 results
Delfin Rueda, CFO
3Q17 Operating result and Net result
Operating result ongoing Operating result to Net result (in EURm) Net result (in EURm)
business (in EURm)
NN
Delta Lloyd Operating result
431
ongoing business
69%
35% Non-operating items1 541
734
431 Japan CBVA 3 36
51
319 Special items2 -45
Amortisation of 436
-33
acq. intangibles
699
379 Taxation -159

Minority interests -4

Net result 734

3Q16 3Q17 3Q16 3Q17

1. Includes realised capital gains/losses and impairments, revaluations and market & other impacts
2. Includes restructuring expenses and expenses related to the integration of Delta Lloyd

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Operating result ongoing business by segment
Operating result ongoing business (in EURm) Operating result 3Q17 EUR 431m up 35% on 3Q16
Netherlands Life: Operating result up on higher technical margin,
lower expenses and the contribution of Delta Lloyd, partly offset
31% by lower fees and premium-based revenues
1,241 Netherlands Non-life: Operating result down reflecting an
35%
115 29 unfavourable claims experience at Individual disability and a
431 negative operating result for Delta Lloyd; combined ratio 102.5%
945 175
41 Insurance Europe: Operating result up reflecting higher fees and
45 100
319 192 premium-based revenues partly offset by higher expenses
52 130
38 5
40 138 Japan Life: Operating result up on higher fees and premium-based
77 revenues, an improvement in the technical and investment margin,
52 49
1
21 partly offset by higher expenses
726 Asset management: Operating result up reflecting higher fees
215 547
178 partly offset by higher expenses
Other: Operating result up supported by EUR 32m of non-recurring
-11 -20 benefits, as well as a higher operating result at the banking
3Q16 3Q17 9M16 9M17 business

Netherlands Life Insurance Europe Asset Management

Netherlands Non-life Japan Life Other 8
Free cash flow 3Q17
Movement in holding company cash capital (EURm)

• Free cash flow of EUR 268m driven by

EUR 332m of dividends received mainly
332 from the Dutch units
1,731 -64 1,789
-209
• Capital flows to shareholders reflect
Free cash flow EUR 268m cash part of the 2017 interim dividend
(EUR 130m) and the amount of shares
repurchased in 3Q17 (EUR 79m)

2Q17 Dividends Other1 Capital flows 3Q17

from from / (to)
subsidiaries shareholders

1. Includes holding company expenses and other cash flows

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Solvency II movement 3Q17
+6% +2% • Solvency II ratio increased
SII ratio 196% 204% reflecting operating return and
-0% market variance

+0.3 15.9
• Operating return includes a
+0.3 contribution from Delta Lloyd of
15.3 -0.0
EUR ~60m to Own Funds
OF1
(in EUR bn) • Market variance mainly due to
tightening of credit spreads on
government bonds and positive
7.8 +0.0 +0.0 7.8 equity and real estate
revaluations
SCR1 -0.1
(in EUR bn)

2Q17 Operating Market Other3 3Q17

return2 variance

1. Eligible Own Funds and Solvency Capital Requirement; Available and required regulatory capital for Japan Life, Asset Management and pension funds
2. Operating return includes Solvency II entities, Japan Life, Asset Management and pension funds, as well as holding expenses
3. Mainly includes model and assumption changes, the accruals of the qualifying debt and the change of non-available Own Funds and non-eligible Own Funds
as well as special items related to non-Solvency II regulated entities and Holding 10
Maturity of senior notes on 17 November 2017
Holding company cash capital (EURm) Financial leverage (notional, in EURm)

29.9%
1,789 28.1%
Financial leverage ratio
6,675
6,100 NN subordinated notes
575
1,214 NN senior notes
1,250 -575 1,250
-575 Subordinated notes (former DL)
2,000 2,000 Senior notes (former DL)

2,850 2,850

3Q17 Repayment Pro-forma Financial Repayment of Pro-forma

of senior cash capital leverage senior notes financial
notes 3Q17 leverage

• Maturity of EUR 575m Delta Lloyd senior notes reduces financial leverage ratio to 28.1%
• Cash capital position at the holding company at a comfortable level of EUR 1.2bn

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Wrap up
Lard Friese, CEO
Key takeaways
1 Strong operating performance and commercial performance of the combined group

Ongoing focus on efficiency: further expense reduction in business units in scope of

2 integration of EUR 64m in 3Q17

Strong capital position: Solvency II ratio of 204%; holding company cash capital at
3
EUR 1.8bn

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Q&A
Lard Friese, Delfin Rueda, Jan-Hendrik Erasmus
Appendices
Breakdown of operating result between
NN Group and Delta Lloyd
3Q17 operating result before tax (EURm)

3Q17 total NN Group Delta Lloyd

Netherlands Life 215 187 29

Netherlands Non-life 1 7 -6
Insurance Europe 77 70 7
Japan Life 52 52
Asset Management 45 40 5
Other 41 24 17
Operating result ongoing business 431 379 51

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Dividends upstreamed
Dividends upstreamed by segments/subsidiaries (EURm)

3Q17 2Q17 1Q17 2016

Netherlands Life1 168 501 160 642

Netherlands Non-life1 49 5 - 154
Insurance Europe1,2 15 172 13 251
NN Japan Life - 57 - 80
Asset Management 33 31 - 93
NN Re Netherlands 50 50 50 250
Other1 17 3 73 140
Total 332 820 296 1,611
1. Includes interest on subordinated loans provided to subsidiaries by the holding company
2. Refers to Insurance Europe entities’ consolidated totals excluding Czech Life insurance business (branch of NN Life)

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Important legal information
NN Group’s Consolidated Annual Accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union
(“IFRS-EU”) and with Part 9 of Book 2 on the Dutch Civil Code. In preparing the financial information in this document, the same accounting principles are
applied as in the NN Group N.V. condensed consolidated interim accounts for the period ended 30 September 2017.
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 or European Union
countries leaving the European Union, (4) changes in the availability of, and costs associated with, sources of liquidity as well as conditions in the credit
markets generally, (5) the frequency and severity of insured loss events, (6) changes affecting mortality and morbidity levels and trends, (7) changes
affecting persistency levels, (8) changes affecting interest rate levels, (9) changes affecting currency exchange rates, (10) changes in investor, customer and
policyholder behaviour, (11) changes in general competitive factors, (12) changes in laws and regulations and the interpretation and application thereof, (13)
changes in the policies and actions of governments and/or regulatory authorities, (14) conclusions with regard to accounting assumptions and
methodologies, (15) changes in ownership that could affect the future availability to NN Group of net operating loss, net capital and built-in loss carry
forwards, (16) changes in credit and financial strength ratings, (17) NN Group’s ability to achieve projected operational synergies, (18) catastrophes and
terrorist-related events, (19) adverse developments in legal and other proceedings and (20) the other risks and uncertainties contained in recent public
disclosures made by NN Group.
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.

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