NN Group: Settles and Clears Up Its Unit-Linked File

NN Group has announced the settlement of its unit-linked file and this removes some uncertainty around the name. The settlement NN Group has agreed with the claims foundations is EUR 300 million and the business has provisioned an additional EUR 60 million for claims arising from customers unaffiliated with these claims foundation claims. The total settlement of EUR 300 million covers all three NN Group entities of Nationale Nederlanden Levensverzekering, Delta Lloyd, and ABN Amro Levensverzekering as well. When we estimated the cost of the potential settlement for NN after ASR announced a similar settlement in November last year, we estimated that the cost would be around EUR 255 million, give or take around EUR 100 million. We accounted for this amount within our estimates at that time. We maintain our EUR 55 per share fair value and maintain our no-moat rating.