The latest financials from NN Group show revenues are up by about 10% during the opening half of 2023. The operating profit was up by 24% which is impressive. Apart from a blip in Japan, all markets seem to be doing very well this year. The trend for insurers in general this year has been increasing revenues and profits, with Allianz reporting a 12% rise in revenues earlier this year.
The only black cloud on the horizon is the public reaction to rapidly increasing profits and motor premiums in a time of inflation, plus globalist politicians introducing more LEZ/ULEZ/C’rit Air taxes on vehicle movements, which are usually targeted at the working poor. The demand for a windfall tax on insurers might not be too far away.
Here’s an extract from the NN press release;
“Today we are reporting strong results for the first half of 2023 and good progress on our strategic and financial targets, underscoring the strength of our diversified portfolio of businesses in this uncertain macroeconomic environment. Operating capital generation (OCG) rose 14.8% to EUR 997 million compared with the first half of 2022, excluding the impact of the sale of our asset management business in April 2022. This reflects strong business performances from Netherlands Non-life, Insurance Europe and Banking, more than offsetting a decrease in OCG at Netherlands Life mainly due to adverse financial markets. Our capital position remains resilient, and we continue to be comfortable with the high quality of our investment portfolio. Our commercial performance was solid across our businesses. Netherlands Life realised net inflows of EUR 1.3 billion at its Defined Contribution pension business, a significant increase compared with EUR 0.9 billion in the first half of 2022, reflecting our strong position in the Dutch pension market. Netherlands Non-life reported a strongly improved combined ratio of 90.1%, benefitting from a favourable claims experience supported by benign weather, as well as higher interest rates. Commercial momentum at Insurance Europe continued, as reflected by higher sales across the region despite inflationary pressures in many of our markets.”
NEW THINKING, NEW TECH
NN Group are also deploying an AI solution on calls triage;
“We want our colleagues to focus on helping our customers as much as possible. To this end, in the Netherlands we are deploying generative artificial intelligence (AI) across our call centres. Through automated call logging, agents get an automatic summary of their conversations with customers within seconds after the calls end, saving them time to focus on helping our customers. The tool was first implemented at a call centre at our banking business and will be rolled out to other call centres in the coming months.”
In the Czech Republic there’s also a new partnership agreement;
“As we continue to strengthen our distribution network across our European markets, NN Czech Republic entered into a seven-year exclusive partnership with MONETA Money Bank for the distribution of its life insurance and pension savings products to Moneta’s customers. Through the cooperation, the bank’s customers can purchase NN products both at Moneta’s branches and through the bank’s online portals. Additionally, NN Slovakia started a partnership with Slovenská sporiteľňa, the country’s largest bank, offering its customers NN life insurance and a new risk insurance product.”
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