NN Romania recorded solid financial performance on all business lines in 2021, despite challenges still faced by the local economy in the Covid-19 context. The company consolidated its position as a financially stable life insurance and private pensions leader with a significant footprint in the local economy. At the same time, NN accelerated its digital transformation strategy, providing more benefits and a digital experience to clients in their interaction with their insurance and private pensions products.
In the life and health insurance segment, NN Asigurari de Viata’s assets under management reached almost 4.6 billion lei at the end of 2021, up by 8.5% compared to 2020, and gross written premiums surpassed 940 million lei last year, up by 10.2%, unaudited financial data shows. In 2021, the clients’ focus on protecting their health and the health of their loved ones was higher than ever, with about 37% of all new customers choosing the NN Health Insurance for themselves and their families.
NN continued to be there for its customers when they needed most. In 2021, NN paid total benefits of over 482 million lei, up by 10.5% compared to 2020. Almost 77 million lei 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 405 million lei. 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 86 million lei, 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 57 million lei, 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, the company continued to support clients save more for retirement. Net assets under management increased by 18.2% to over 1.8 billion lei 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 31.1 billion lei, 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 2.8 million lei and NN Pensii with 1.2 million lei, 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.