ING Direct 2013 Annual Report Download - page 51

SUPPORTING AND DEVELOPING EMPLOYEES
For a customer-focused organisation such as NN Group, engaged
employees are the key to success. This means attracting the right
people, empowering them, giving them clear accountability and
ensuring that they focus on continuous development and set
ambitious but realistic goals.
Employees are encouraged to invest in themselves and in their
employment prospects. Employees are given, for example, training,
coaching and internships. In the Netherlands they are also offered
retraining advice if they are maderedundant.
2013 was a year of major transition for the insurance and
investment management operations in the Netherlands. As
announced in November 2012, the transformation programme in
the Netherlands is expected to result in an estimated headcount
reduction of 1,350 FTEs over the period 2013-2014. By the end of
2013, a reduction of 818 FTE was realised.
The restructuring has resulted in stronger governance, better
integrated support functions, and three distinct Dutch business
lines: Netherlands Life, Netherlands Non-life and Nationale-
Nederlanden Bank. Supporting employees through this transition
was a key priority for the company.
A three-year collective labour agreement was signed, which
included the goal of stabilising labour costs as well as integrating
WestlandUtrecht employees into Nationale-Nederlanden Bank.
Despite the turbulence of the past few years, employee
engagement remained high. This was also reflected in employees’
willingness to involve themselves in community activities outside
the company in many countries.
SUSTAINABILITY
Embedding sustainability in core activities and processes remained
a key priority. The businesses strive – in their daily actions and
decision making – to strike a balance between financial interest and
their impact on society and the environment. This entails – amongst
others – offering products and services that are suitable,
transparent and contribute to the financial wellbeing of our
customers.
NN Group’s ambition is to play a leading role in improving industry
standards. Its aim is to be a trusted partner in financial matters,
providing guidance and financial education so consumers better
understand and secure their financial future. Efforts to become an
even stronger company for stakeholders, for example by continuing
to make things easier and simpler for customers, area significant
aspect of its business strategy.
In the field of responsible investing, Investment Management has
taken significant steps in integrating environmental, social and
governance (“ESG”) aspects into the investment process.
Sustainable assets under management increased by 8.3% to
EUR3.5 billion. In line with being an active investor, Investment
Management also attends shareholder meetings of its investee
companies. In 2013 it introduced the publication of quarterly Active
Ownership reports on its voting and engagement activities.
ING became one of the founding signatories of the United Nations
Principles for Sustainable Insurance (PSI) in 2012, which underlines
its commitment to embedding ESG considerations into strategy and
decision making. In 2013, the PSI strategy for the coming years
waswritten and approved by all PSI members.
NN Group takes its role in society seriously. Activities range from
financial education to health and wellbeing initiatives. They
involveraising funds and employees volunteering their time for
special projects.
SOLVENCY II
Throughout 2013, the insurance business worked towards meeting
the European Union’s Solvency II Directive’s requirements,
particularly with respect to adapting ING’s risk measurement, risk
management and reporting to the levels required.
The trial Internal Model Application Package (“IMAP”) was
submitted to DNB, the Dutch regulator, in 2013. The submission
was a first step towards gaining approval for an internal model for
the quantification of NN Group’s capital requirements. The review
of the IMAP by the College of Supervisors (a group of international
supervisors) and the further firming up of Solvency II measures will
form the basis of ING’s implementation efforts.
In November, a major milestone was reached in Brussels. The
European Parliament, Council and European Commission reached
apolitical deal on the Omnibus II Directive – amending the 2009
Solvency II Framework Directive. Solvency II’s implementation is
planned for 1 January 2016.
NN Group will continue to play a role in discussions with the
industry and with regulators on developing Solvency II so that it is
robust and helps life insurance companies continue to meet the
long-term financial needs of their customers.
CONCLUSIONS AND AMBITIONS
In 2013 strong progress was made in the European and Japanese
insurance and investment management restructuring programme
and on improving the customer experience and operational
performance.
NN Group’s overall ambition is for customers to choose its products
and services based on their previous positive experience with its
businesses. The priorities for the business are to be a strong,
sustainable company, delivering excellent customer service and
transparent products. The priorities also include providing multi-
access distribution, having efficient andeffective operations and
generating capital.
49ING Group Annual Report 2013
1 Who we are 2 Report of the Executive Board 3 Corporate governance 4 Consolidated annual accounts 5 Parent company annual accounts 6 Other information 7 Additional information