August 16, 2018 / 5:26 AM / a year ago

Dutch insurer NN Group's second-quarter profit jumps, beats estimates

AMSTERDAM (Reuters) - Dutch insurer NN Group (NN.AS) on Thursday said its second-quarter core profit jumped 25 percent to 508 million euros ($578.4 million), as it continued to benefit from the takeover of smaller rival Delta Lloyd.

Analysts polled by Reuters on average had predicted operating result to rise 6 percent to 428 million euros.

The 2.5 billion euros takeover of Delta Lloyd, completed in May last year, drove down costs by 62 million euros in the second quarter, taking total reductions up to 236 million euros, the company said.

The insurer said in May the takeover would lead to a total cost savings of 400 million euros by 2020.

Lower costs and improving operating results at the Dutch life insurance business and the property and casualty insurance division strengthened the group’s capital position in the April-June period.

NN’s total capital adequacy measure under Europe’s new Solvency II rules surged to 223 percent, from 213 percent a year earlier.

Net income nearly doubled to 463 million euros, leading to a 6 percent rise in the insurer’s interim dividend, to 0.66 euros per share.

The company added that it would buy life insurance and pension activities from Dutch rival Aegon (AEGN.AS) in the Czech Republic and Slovakia for 155 million euros, strengthening its position in those markets.

($1 = 0.8783 euros)

Reporting by Bart Meijer, Editing by Sherry Jacob-Phillips

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