NN Group reaches 360 million euro settlement on unit-linked products

AMSTERDAM (Reuters) – Dutch insurer NN Group on Tuesday said it had reached an agreement with interest groups to settle a years-long fight over investment-linked products for a total consideration of approximately 360 million euros ($393.12 million).

In September last year, a court said the company had at various points offered customers insufficient information about the costs linked to its products, striking down a 2017 ruling that had cleared the company of these allegations.

NN Group said it had taken a 360 million euros provision in the fourth quarter of last year, with 60 million euros earmarked for “hardship cases” and customers unaffiliated to the interest groups who have not previously received compensation.

NN Group and other Dutch insurers have been dealing with issues related to these insurance policies, popularly known as “woekerpolissen” for years.

The common theme is that customers were allegedly not informed how much of their premiums went to actual investments, and how much went to cover insurers’ costs.

In previous rounds, NN already compensated buyers of the products for around 1 billion euros.

($1 = 0.9158 euros)

(Reporting by Bart Meijer)