An insurance company asked NN Investment Partners for advice on better matching their financial assets to future liabilities. NN Investment Partners helped restructure the insurer's portfolio, including increasing the use of derivatives. Over a year and a half, NN Investment Partners met quarterly with the insurer and communicated extensively about transactions. As a result of the restructuring process, the insurer gained a stronger understanding of their future challenges and an investment strategy to meet liabilities and expand their business profitably.

1. You can’t shake
hands with a
computer algorithm

2. An insurer creates a better fit of financial assets with
future liabilities
Many institutional investors are faced with the major challenge to better match their assets with their long
term liabilities. This can be a complex task, but it’s also a crucial one. Financial obligations will have to be
met in the future, clients and other stakeholders depend on it.
An insurance company who wanted to improve their fit of assets and liabilities asked our advice. Their
portfolio had been managed against benchmarks that no longer accurately reflected the company’s future
liabilities. The insurer therefore took the sensible decision to revise its strategic asset allocation and needed
an external asset manager with experience in the specific assets classes and categories within its portfolio,
particularly with regard to the durations of many of the loan securities.
The insurance company made the choice to focus on their need for experience. They chose NN Investment
Partners for the outsourcing assignment, largely on the merits of our capabilities in managing the types of
loan securities in their portfolio. We assured full accountability. This means that the client remains in the
driver’s seat, even in the case of the outsourcing of management. During the year and a half that the
restructuring required, we held quarterly meetings, expert consultations and communicated extensively
about each individual transaction in the portfolio. The top levels of the company valued our briefings on the
use of derivatives, a new element in the company’s portfolio. They made derivatives a key element of the
restructuring solution.
The client was closely involved in every step during the restructuring and emphasized that the process was a
learning opportunity. As a result, the insurer obtained a much firmer grip on its future financial challenges.
The company now has an investment portfolio and strategy that have enabled it not only to meet future
liabilities profitably but also to keep expanding the business.
A tough financial
challenge
Client in the
driver’s seat
A firm grip on
future challenges

3. About NN Investment Partners
NN Investment Partners is the asset manager of NN
Group N.V., a publicly traded company listed on
Euronext Amsterdam. NN Investment Partners is
head-quartered in The Hague, the Netherlands.
NN Investment Partners in aggregate manages
approximately EUR 197 bln* (USD 219 bln*) in assets
for institutions and individual investors worldwide.
NN Investment Partners employs over 1,100 staff and
is active in 16 countries across Europe, Middle East,
Asia and U.S.
On April 7 2015, ING Investment Management was
renamed to NN Investment Partners. NN Investment
Partners is part of NN Group N.V., a publicly traded
corporation.
*Figures as per 30 June 2016
For more information on our investment strategies
or our mutual funds, please contact us or visit
www.nnip.com for more information.
We have always felt that lasting partnerships and the best results are built
around making clients’ challenges our challenges. For different organisations,
getting the most out of investments in a responsible way means different things.
At NN Investment Partners, we focus wholly on what this means for you and
provide the solutions that meet your needs.
Netherlands
+31 70 378 1781
Germany
+49 69 50 95 49 0
Belgium
+32 2 504 47 00
France
+33 1 56 79 34 50
Luxembourg
+35 2 2463 5140
Iberia
+34 91 769 41 01
Czech Republic
+31 70 378 1112
Latin America
+31 70 379 17 40
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+31 70 378 1781
Italy & Austria
+39 02 3031 6400
Poland
+48 22 640 09 78
United Kingdom
+44 207 767 1220
Romania
+40 21 402 85 50
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+65 6632 3060
Middle East
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+41 58 252 55 50
Japan
+81 3 5210 0653
US
+31 70 378 1781
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+42 0 2 510 91 711