NN Romania closed 2021 with strong performance across all business lines; digital transformation is a key pillar in the company's growth strategy
NN Romania, local life insurance market's leader, recorded solid financial performance on all business lines in 2021, despite challenges still faced by the local economy in the Covid-19 context. Life and Health insurance GWP exceeded EUR 182.8 million while the gross profit reached EUR 17.4 million.
In the life and health insurance segment, NN Asigurari de Viata's assets under management reached almost RON 4.6 billion (~EUR 0.93 million) at the end of 2021, up by 8.5% compared to 2020, and GWP surpassed RON 940 million (EUR 182.8 million) last year, up by 10.2%, unaudited financial data shows. In 2021, while clients' focus on health protection increased, about 37% of all new customers chose the NN Health Insurance for themselves and their families.
In 2021, NN paid total benefits of over RON 482 million (~EUR 97.6 million), up by 10.5% compared to 2020. Almost RON 77 million were benefits for insured events, 38% higher than the previous year, of which a third were for health-related claims covered by insurance products. At the same time, redemptions and maturities amounted to RON 405 million. The company's liquidity ratio was 3.05 in last year and the solvency rate reported according to Solvency II was 272%, confirming the company's financial stability and capacity to hold obligations to clients.
NN Asigurari de Viata closed 2021 with a gross profit of RON 86 million (EUR 17.4 million), according to unaudited financial results, 10.4% below the level in 2020 reflecting the commitment to invest in digital transformation, improving customer experience. The company paid total contributions to the state budget worth almost RON 57 million, similar to the previous year.
"NN has a solid financial foundation and is well-positioned to continue building on our strategy to be a real support for clients seeking to protect what matters most to them through relevant insurance and private pension solutions. Our investments in the customer experience and our journey to becoming the digital insurer of the future allows us to deliver digital interactions to the more than 2.2 million Romanians who rely on us in their efforts to ensure a better financial future for themselves and their families", said Gerke WITTEVEEN, CFO of NN Asigurari de Viata.
Digital transformation continued to be a key pillar in the company's growth strategy for the future. In 2021, NN focused on accelerating digitalization across all customer interactions with their insurance and private pensions, from purchase to benefits, adding new tools and processes for an agile digital experience. Customers can purchase insurance in a 100% end-to-end digital process that ensures rapid issuing of the policy, in most cases within 1 hour from electronic signing of the contract and payment. In 2021, more than 75% of premium payments were made online by NN customers, through the NN Direct mobile app or through payment link. NN also continued to develop NN Direct, which allows clients to stay informed, in real time, about their insurance and pensions products, make payments, update personal data, and manage their product portfolios. Starting 2021, customers can also request benefits for insured events through NN Direct, in a fully digital process that only takes minutes, while requests are solved rapidly, in under 48 hours.
In the voluntary private pensions segment managed by NN Asigurari de Viata, net assets under management increased by 18.2% to over RON 1.8 billion (EUR 364.4 million) at the end of last year, cumulated for NN Activ and NN Optim funds, representing a 54.8% market share, according to Financial Supervisory Authority data. The two funds under management had a total of 271,000 participants at the end of last year, representing 48.1% of the total Pillar III participants. NN Asigurari de Viata generated investment returns of 9.24% for NN Activ and 5.12% for NN Optim in 2021, as per calculations based on FSA data.
At the same time, in the mandatory private pensions segment managed by NN Pensii, 2021 closed with net assets under management worth RON 31.1 billion (EUR 6.3 billion), representing almost 35% of the overall market, up by 19.1% compared to the end of 2020, according to Financial Supervisory Authority data. The fund managed by NN Pensii had over 2 million participants at the end of last year, representing 26.3% of total Pillar II participants. NN Pensii generated a 7.25% investment returns in 2021, as per calculations based on FSA data.
In 2021, NN also upscaled its contributions to the wellbeing of the communities it is part of in Romania, supporting socially relevant initiatives that focus on health and financial inclusion. In total, NN Asigurari de Viata sponsored initiatives with RON 2.8 million and NN Pensii with RON 1.2 million, according to unaudited financial data. The most significant initiative started last year is the partnership with the Inima Copiilor Association for the expansion of the Cardiac Surgery Department of the Marie Curie Children's Hospital in Bucharest.
About NN Romania
NN (www.nn.ro) is the first international life insurance company to enter the Romanian market in 1997, and for 13 years it has also been active in the private pensions segment, being a leader in its markets. At the same time, NN has expanded in the health insurance market and, more recently, in the general insurance market, by adding housing insurance to its portfolio. NN supports over 2.2 million insurance and pension customers, a quarter of Romania's active population, to protect everything that matters most to them.
Author: Daniela GHETU
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