Dutch SNS Reaal Expects extensive hobby for coverage division Sale

SNS Reaal, the Dutch financial services institution nationalized remaining year, said global and domestic events had expressed hobby in its coverage operations so one can cross up for sale in September.

The comments came as the economic offerings institution, which changed into bailed out for $14 billion ultimate 12 months, reported that it narrowed losses in the first half of of 2014.

The sale of its insurance enterprise, which has been rebranded as Vivant, is part of a strategy to convert SNS Reaal into a stand-on my own financial institution below the terms of the emergency country coins injection that avoided financial ruin.

The group published a net loss of €one hundred twenty five million ($one hundred sixty five million), due especially to provisions in its insurance operations, it stated in a announcement on Thursday. A one-off provision of €269 million [$355 million] became made to satisfy asset liability necessities.

SNS Reaal lost €1.59 billion [$2.1 billion] inside the same length a 12 months earlier after huge write-downs in its property division, assets Finance, the belongings of that have for the reason that been ring-fenced and are now not a part of the organization.

Maurice Oostendorp, the group’s chief monetary and danger officer, told newshounds in a convention name that “there may be extensive home and international hobby from financial and strategic events” to shop for the coverage commercial enterprise.

He did no longer touch upon media reviews in recent days that Delta Lloyd, a smaller Dutch insurer, is interested in obtaining the department.

For the remainder of 2014, SNS stated it anticipated persisted low hobby quotes and “tough market situations”.

“That aggregate approach the bring about the second one half of the year will stay underneath pressure,” Oostendorp stated.

The group’s banking division has completed “severe” consultations with the ecu relevant financial institution as a part of its Asset quality evaluate and, in anticipation of possibly stricter ecu criteria, it has taken into consideration “probable better provisions inside the 2d 1/2,” Oostendorp stated.

In current months the organization has targeted on keeping apart its banking and insurance sports. it's far expected to promote its coverage department within the coming year.

“We expect to take the final steps on this system in the direction of 2015. moreover, we've taken vital steps in preparing for the sale of the insurance activities,” it said.

net income at SNS bank fell by means of almost 1/2 inside the six-month period – to €114 million [$150 million], from €218 million [$288 million] inside the identical period final 12 months, it said.