FAVORABLE RESULTS FOR FIRST NINE MONTHS
REPORTED BY INTERNATIONALE NEDERLANDEN GROUP
THE HAGUE, The Netherlands, Dec. 19 /PRNewswire/ -- Internationale Nederlanden Group reported favorable results for the first nine months of 1991.
This was in line with earlier forecasts, however the year-end results are expected to show a percentage increase clearly lower than that for the first three quarters of the year, according to the Executive Board.
Profit before taxes of $800 million was 16.1 percent higher than the figure of $689 million reported for the first nine months of 1990. This substantial increase is due, among other factors, to the high storm damage claims which had an impact on 1990 results. Profit before taxes for the third quarter of 1991 rose to $262 million vs. $242 million for the same period last year. This was an increase of 8.4 percent.
Internationale Nederlanden Group came into existence in March of this year as a reult of the merger of Nationale-Nederlanden, Holland's largest insurer, and NMB Postbank Group, the third-largest bank in the nation.
Net profit for the first nine months of 1991 increased to $578 million from $516 million for the same period of 1990. This was an increase of 12.0 percent. At $180 million, net profit for the third quarter of 1991 almost equaled the figure for the corresponding period of last year.
Net profit per share for the first nine months of 1991 amounted to $2.49, an increase of 14.2 percent. Pro forma profit per share for the whole of 1990 amounted to $3.43.
The total assets of the Group grew from $147.1 billion as of Dec. 31, 1990, to $160.6 billion as of Sept. 30, 1991. This was an increase of 9.2 percent.
During the same period, disclosed shareholders' equity increased from $7.4 billion to $7.7 billion, up 4.8 percent. Shareholders' equity was affected favorably by the appreciation of the Group's share portfolio and by exchange rate movements. At the same time, the previously announced necessity of increasing the claims provisions of Victory Insurance Holdings, a London-based reinsurance subsidiary, had a negative impact on shareholders' equity.
Revenue from insurance operations increased to $10,451 million or 16.6 percent. Eliminating the effect of newly acquired group companies and exchange-rate movements, organic growth was 9.3 percent. Premium income from life insurance was 10.9 percent higher than for the same period of last year. Vigorous growth was recorded in the areas where new operations have been started as well as in longer established operations. Premium income from non-life insurance increased overall by 6.1 percent. Insurance-related investment income increased by 17.9 percent.
Profit before tax for life insurance operations amounted to $179 million, a decrease of 2.9 percent compared with the first nine months of 1990. Increased profits in the Netherlands were offset by lower earnings in other areas due to acquisition costs of a high level of new production.
Despite a less favorable third quarter, the result before taxes from general insurance increased by $55 million compared with the same period last year, reaching a profit of $3 million. Within the general insurance sector, improved results were reported for automobile and the accident and sickness business. Fire insurance results were disappointing. Marine and aviation continued to incur heavy losses. Despite a deterioration, miscellaneous insurance remained profitable.
Reinsurance results were favorable in the third quarter with profit before tax up 11.5 percent at $15 million.
The pre-tax profit of the banking operations for the first nine months of 1991 (excluding the balance of the income from investments) was $301 million, an improvement of 33.3 percent compared with the same period last year. Including the balance of income from investments this increase was 19.5 percent.
Bank lending increased by 9.6 percent from $64.2 billion as of Dec. 31, 1990, to $70.3 billion as of Sept. 30, 1991. International lending grew at a faster pace than in the Netherlands. Domestic corporate lending was up 3.5 percent to $34.6 billion; domestic retail rose by 4.2 percent to $22.7 billion; international lending grew to $13.1 billion or 45.0 percent.
Despite a slight narrowing of the interest margin, net interest income rose by $69 million to $1,815 million compared to the same period in 1990. This was an increase of 4.0 percent. An increase in the average volume of business, especially in the international sector, was responsible for most of this growth. Commission income was 10.9 percent higher, rising from $318 million to $353 million. The consolidation of recently acquired Spanish lease companies, fund transfer services, international operations, leasing and factoring contributed to this improvement. Other income showed a strong increase from $197 million during the first nine months of 1990 to $334 million in the same period this year, an increase of 69.5 percent. Much of this positive result can be attributed to the sustained high level of activity in emerging markets. Good results were also reported for currency arbitrage and leasing operations.
Investment income not allocated to the insurance or banking operations in the first nine months of 1991 amounted to $301 million, a decrease of $16 million compared to the same period last year. The interest charge on the subordinated loan of Internationale Nederlanden Group is the principal reason for this decrease.
For reasons of comparison all amounts have been converted at the same exchange rate (Sept. 30, 1991): 1 DFl equals US $0.533.
Nationale-Nederlanden, the insurance subholding of the Internationale Nederlanden Group, is represented in North America by a total of 17 life and health, and property and casualty insurance companies. The NMB Postbank Group, the banking subholding of the Internationale Nederlanden Group, has branch offices in several cities in the United States.
/CONTACT: Hans-Ludo van Mierlo of Internationale Nederlanden Group (Amsterdam, the Netherlands), 31-20-646-2201, or Joep Jurgens, vice president of Nationale-Nederlanden North America Corp., (Washington, D.C.), 202-393-2001/ CO: Internationale Nederlanden Group ST: IN: INS SU: ERN 946 12-19-91 11:35 EST BR-BN -- AT009 -- 3855 12/19/91 11:40 EST