SNS Reaal

Last updated

SNS REAAL N.V.
Type Naamloze vennootschap under public ownership
Euronext:  SR
Industry Financial services
Founded1997
Defunct30 September 2015  OOjs UI icon edit-ltr-progressive.svg
Headquarters Utrecht, Netherlands
Key people
Gerard van Olphen [1] (CEO), Rob Zwartendijk (Chairman of the supervisory board)
Products Retail banking, insurance
Revenue€7.068 billion (2010) [2]
Decrease2.svg (€225 million) (2010) [2]
Total assets €127.67 billion (end 2010) [2]
Total equity €4.833 billion (end 2010) [2]
Number of employees
7,110 (FTE, 2010) [2]
Subsidiaries ASN Bank, AXA Nederland, REAAL, SNS Bank, SNS Regiobank, Zwitsersleven
Website www.snsreaal.nl

SNS REAAL was a Dutch financial institution in insurance and banking which focused on the private market and small to medium businesses. It became a government-owned corporation after its nationalisation in 2013 and in 2017 .

Contents

The services to private and corporate clients are mainly from SNS Bank and insurance brand REAAL. SNS Bank served its customers through its own stores, independent intermediaries, internet, and telephone. REAAL sold its products and services exclusively through independent brokers.

As of 2011 the company had assets amounting to €132 billion, with about 7,000 full-time equivalent employees.

IPO

SNS was listed on the Euronext Amsterdam from 18 May 2006 [3] until 31 January 2013. The "Foundation SNS REAAL" sold part of its stake in the company, its share decreased from 100% to 65.5%. The sale resulted in proceeds of approximately €950 million. At the flotation, SNS REAAL also gave out about 25 million new shares, this yielded €415 million. The shares were placed at a price of €17 each. End of 2006, the market capitalization of SNS amounted to €3.9 billion. The importance of the foundation in SNS later fell to just over 50%.

Early history

In 1997, SNS founded subsidiary SNS Asset Management, a company focussing on microfinance.

In 1998, SNS founded Proteq Dier & Zorg (English: "Animal and care"), a wholly owned subsidiary providing insurance for pets. [4] In 2014, it was rebranded as Reaal Dier & Zorg. [4]

Acquisitions

The bank used the money raised as part of the IPO for acquisitions and in particular wanted to buy an insurance company. 2006 and 2007 saw three major acquisitions: Bouwfonds, AXA, and Zwitserleven.

Bouwfonds

In the summer of 2006, Bouwfonds Property Finance (BPF) was acquired, which was part of Bouwfonds Nederlandse Gemeenten NV, a former semi-public company that is mainly focused on owner-occupied homes and mortgages. The fund was fully privatized in 2005, because the latter municipalities sold their shares to the new owner ABN AMRO. [5] In 2005, BPF had a net profit of €87 million. After the acquisition, the part resumed its activities under the name SNS Property Finance.

Seller ABN AMRO received €810 million for this activity. [6] SNS REAAL strengthened in this way its position in the small to medium business market, and reduced its dependence on the mortgage market. At end of 2006, the loan portfolio of SNS Property Finance's was valued at €8.8 billion, of which 77% was in the Netherlands. Eventually, this acquisition ended up disastrous for SNS REAAL. The depreciation on real estate purchase eventually led to the forced nationalization of SNS REAAL on 1 February 2013.

AXA

In early June 2007 it was announced that SNS Reaal took over the Dutch activities of the French insurance group AXA for an amount of €1.75 billion. [7] [8] [9] This acquisition included AXA Nederland, Winterthur Nederland, and DBV Hypotheken . [9]

This was partly financed by the issuance of new shares. After this acquisition, SNS was the fifth player in the Dutch insurance market. Only Eureko, ING, Fortis and Aviva have a larger share. The acquisition increases the market share, on the basis of the premium, to over 9%.

SNS discontinued its use of the AXA and Winterthur brands, in 2007 it started full integration of AXA Nederland and Winterthur Nederland activities into Zwitserleven.

In 2009, SNS announced the DBV Hypotheken brand would be discontinued and fully integrated as well. [10]

Zwitserleven

In November 2007, SNS REAAL acquired the Dutch and Belgian activities of Zwitserleven . [11] With this takeover, SNS REAAL became the second-largest pension and life insurance company in the Netherlands. SNS reportedly paid €1.5 billion, which was almost 17 times the annual profit for the acquisition.

Capital injections

As a direct result of the credit crunch SNS received €750 million from the government in November 2008. The government received in exchange for this special effects based on a price of €5.25 per piece, under the Dutch standard terms.

Nationalisation

SNS REAAL headquarters in Utrecht (2015). SNS Bank Croeselaan 1 in Utrecht 2015.jpg
SNS REAAL headquarters in Utrecht (2015).

On 1 February 2013 the Dutch Minister of Finance, Jeroen Dijsselbloem, announced the decision to expropriate securities and assets of SNS REAAL and SNS Bank NV in connection with the stability of the financial system, thus bringing the bank under state control. [12] The initial cost of the nationalisation was put at 3.7 billion euros. [13] Unlike in many previous European bank bailouts, junior bondholders were not bailed out and lost their investment completely, although senior bondholders were still protected. [14]

In December 2013, the Dutch government announced its intent to consolidate most of the banking activities of SNS Reaal under SNS Bank, and to separate the banking and insurance activities (approved by the Europese Commission earlier that month). This would allow re-privatisation of SNS Bank and Reaal as separate entities. [15]

SNS Securities N.V. (originally founded in 1981, subsidiary of SNS Bank N.V.) was acquired by NIBC Bank in 2015. [16]

De Volksbank

In September 2016 it was announced that the main banks under SNS REAAL have been consolidated under SNS Bank N.V. It would also rename to De Volksbank as of 1 January 2017. [17] [18]

VIVAT

In June 2014, SNS announced that the insurance arm of SNS REAAL would become Vivat Verzekeringen. The company also announced that SNS Asset Management would be renamed to Actiam and also become part of Vivat.

The insurance arm of SNS REAAL consisting of Reaal, Actiam, Zwitserleven, and Proteq (Reaal N.V.) was renamed in 2014 to Vivat N.V. [19] In February 2015, it was announced that the firm would sell Vivat to the Chinese financial group Anbang in a deal worth €1.4 billion. [20]

Propertize

In December 2013, SNS announced its real estate arm SNS Property Finance would continue under the name Propertize as separate entity. [21]

In October 2015, the Minister of Finance announced that Propertize would be for sale starting in December 2015. [22] By June 2016, a deal was made with Lone Star Funds and JPMorgan to buy Propertize for €895 million. The deal closed in September 2016. [23]

Subsidiaries

SNS REAAL has operated the following brands at different points in time.

Banking:

Insurance:

Real estate:

Other brands:

Financial results

Year [25] TurnoverNet incomeBalance sheet totalEmployees
2011Decrease2.svg €6,119,000Increase2.svg €87 millionIncrease2.svg €132,174,000Decrease2.svg 6928
2010Decrease2.svg €7,068,000Decrease2.svg – €260 millionDecrease2.svg €127,713,000Decrease2.svg 7113
2009Increase2.svg €8,497,000Increase2.svg €17 millionIncrease2.svg €128,900,000Decrease2.svg 7520
2008Increase2.svg €5,137,000Decrease2.svg – €504 millionIncrease2.svg €125,359,000Increase2.svg 7535
2007Increase2.svg €4,543,000Increase2.svg €465 millionIncrease2.svg €103,074,000Increase2.svg 6713

Related Research Articles

Union Bank of Switzerland Swiss investment bank and financial services company

Union Bank of Switzerland (UBS) was a Swiss investment bank and financial services company located in Switzerland. The bank, which at the time was the second largest bank in Switzerland, merged with Swiss Bank Corporation in 1998, to become UBS to form what was then the largest bank in Europe and the second largest bank in the World.

ING Group Dutch multinational banking and financial services corporation

The ING Group is a Dutch multinational banking and financial services corporation headquartered in Amsterdam. Its primary businesses are retail banking, direct banking, commercial banking, investment banking, wholesale banking, private banking, asset management, and insurance services. With total assets of US$1.1 trillion, it is one of the biggest banks in the world, and consistently ranks among the top 30 largest banks globally. It is among the top ten in the list of largest European companies by revenue.

ABN AMRO Bank N.V. is a Dutch bank with headquarters in Amsterdam. ABN AMRO Bank is the third-largest bank in the Netherlands. It was re-established in its current form in 2009, following the acquisition and break-up of the original ABN AMRO by a banking consortium consisting of Royal Bank of Scotland Group, Santander Group and Fortis. Following the collapse of Fortis, who acquired the Dutch business, it was nationalized by the Dutch government along with Fortis Bank Nederland. It was relisted as a public company again in 2015.

OTP Bank Hungarian financial services provider

OTP Bank Group is one of the largest independent financial service providers in Central and Eastern Europe with full range of banking services for private individuals and corporate clients. OTP Group comprise large subsidiaries, granting services in the field of insurance, real estate, factoring, leasing and asset management, investment and pension funds. The bank is serving clients in 10 countries, namely Hungary, Bulgaria, Serbia, Romania, Croatia, Ukraine, Montenegro, Albania and Russia. In 2019, OTP Bank entered into an agreement to purchase MobiasBanca of Moldova. The agreement was finalized on 25 July 2019.

Axa French multinational insurance firm

Axa S.A. is a French multinational insurance firm. The head office is in the 8th arrondissement of Paris. It also provides investment management and other financial services.

Fortis N.V./S.A. was a Belgian financial company active in insurance, banking and investment management. In 2007 it was the 20th largest financial services business in the world by revenue but after encountering severe problems in the financial crisis of 2008, most of the company was sold in parts, with only insurance activities remaining.

KBC Bank

KBC Group N.V. is a Belgian universal multi-channel bank-insurer, focusing on private clients and small and medium-sized enterprises in Belgium, Ireland, Central Europe and South-East Asia. Besides retail banking, insurance and asset management activities, KBC is active in, among other things, European debt capital markets, domestic cash equity markets and in the field of corporate banking, private banking, leasing, factoring, reinsurance, private equity and project and trade finance in Belgium, Central and Eastern Europe and elsewhere. KBC is an acronym for Kredietbank ABB Insurance CERA Bank.

General Casualty Insurance was a super-regional property and casualty insurance provider headquartered in Sun Prairie, Wisconsin as of 2006. It operated as a subsidiary of Winterthur U.S. Holdings.

Swiss Life

The Swiss Life Group is the largest life insurance company of Switzerland and one of Europe’s leading comprehensive life and pensions and financial services providers, with approximately CHF 269.7 bn of assets under management. Founded in 1867 in Zurich as the Schweizerische Lebensversicherungs und Rentenanstalt cooperative, the company entered the Swiss stock market in 1997 and adopted its current name in 2002. In 2020 the group declared an adjusted profit from operations of CHF 1.57 billion, a 5% decrease compared to the previous year. Net profit decreased by 13% to CHF 1.05 billion. Swiss Life is one of the twenty companies listed under the Swiss Market Index, as SLHN.

Axa XL Bermuda-domiciled insurance company

Axa XL is an American subsidiary of global insurance and reinsurance company Axa. It is headquartered in Stamford, Connecticut, domiciled in Hamilton, Bermuda, and has more than 100 offices on 6 continents.

De Volksbank is a Dutch retail bank offering financial products to both companies and individuals. Prior to a 2017 restructuring, it was called SNS Bank, which remains its major brand name. It became a subsidiary of SNS Reaal in 1997 when the holding company bought the insurance company Reaal. The bank and its parent were rescued by the Dutch government in 2013 and have been state owned since then. In 2016, SNS Bank was the fourth-largest bank in the Netherlands in terms of total assets.

ABN AMRO Group N.V. was a Dutch bank group, consisting of ABN AMRO Netherlands, ABN AMRO Private Banking, the International Diamond and Jewelry Group, and Fortis Bank Netherlands.

NautaDutilh

NautaDutilh is an independent law firm practicing Dutch, Belgian and Luxembourg law. NautaDutilh is one of the largest law firms in Europe, with over 400 lawyers, civil law notaries and tax advisers in offices in Amsterdam, Brussels, London, Luxembourg, New York and Rotterdam. The firm history dates back to 1724.

The 2008–2009 Belgian financial crisis is a major financial crisis that hit Belgium from mid-2008 onwards. Two of the country's largest banks – Fortis and Dexia – started to face severe problems, exacerbated by the financial problems hitting other banks around the world. The value of their stocks plunged. The government managed the situation by bailouts, selling off or nationalizing banks, providing bank guarantees and extending the deposit insurance. Eventually Fortis was split into two parts. The Dutch part was nationalized, while the Belgian part was sold to the French bank BNP Paribas. Dexia group was dismantled, Dexia Bank Belgium was nationalized.

<i>Metro</i> (Dutch newspaper) Dutch newspaper

Metro is a free Dutch newspaper, distributed daily since 1999, mostly to commuters in high-traffic areas. Formerly owned by Metro International, in August 2012 the paper was taken over by the Telegraaf Media Group (TMG). At the time of acquisition, TMG already published another free Dutch newspaper, Spits. Later Spits merged into Metro.

The 2014–15 Dutch Basketball League season will be the 55th season of the Dutch Basketball League, the highest professional basketball league in the Netherlands. The defending champion was Donar from Groningen.

Thomas Buberl, is a German businessman who has been serving as the CEO of Axa since 2016.

Ohpen is a Dutch financial technology that built the first core-banking platform in the cloud. Built from the ground up by experienced bankers and software developers, Ohpen is the leading platform for mortgage/consumer lending origination and the administration of savings-, investment- and mortgage products. Ohpen frees financial institutions such as banks, mortgage lenders, building societies and pension funds from having to use legacy systems and processes. Aegon, Knab, Robeco, Link Asset Services, CMIS, De Volksbank and LeasePlan Bank are all customers who have found an adaptable, reliable and compliant solution in the Ohpen Platform. More than 300 people work at the company’s Amsterdam headquarters and its offices in Antwerp, London, Barcelona, Bratislava and Zilina.

Denis Duverne French businessman

Denis Duverne is a French businessman.

References

  1. ↑ "Nieuwe top SNS Reaal, minder loon | NOS". Nos.nl. 27 December 2019. Retrieved 5 January 2020.
  2. 1 2 3 4 5 "Annual Results 2010". SNS Reaal. Archived from the original on 24 July 2011. Retrieved 27 February 2011.
  3. ↑ "Beursgang SNS Reaal valt groter uit". de Volkskrant (in Dutch). 22 May 2006. Retrieved 5 January 2020.
  4. 1 2 "Van Proteq naar Reaal Dier & Zorg". reaaldierzorg (in Dutch). Retrieved 5 January 2020.
  5. ↑ "SNS Reaal neemt Bouwfonds Property Finance over". Trouw (in Dutch). 10 October 2006. Retrieved 5 January 2020.
  6. ↑ "Vastgoedfinanciering: SNS Reaal koopt risico's". FEM Business. 5 August 2006. Archived from the original on 17 July 2012. Retrieved 5 January 2020.
  7. ↑ "SNS Reaal koopt Axa Nederland voor 1,75 miljard". NRC Handelsblad . 3 March 2016. Archived from the original on 3 March 2016. Retrieved 9 November 2012.
  8. ↑ NEWEurope (7 June 2007). "SNS Reaal buys AXA's Dutch insurance". New Europe. Retrieved 5 January 2020.
  9. 1 2 "SNS REAAL en AXA S.A. kondigen overname aan van AXA Nederland, Winterthur en DBV". axa.nl. 4 July 2007. Archived from the original on 29 July 2007. Retrieved 5 January 2020.
  10. ↑ "Annual Report 2009 SNS REAAL" (PDF). SNS REAAL. Retrieved 5 January 2020. In 2009 it was decided to integrate all of DBV’s activities (mortgages and life insurances) in REAAL … Starting with DBV with effect from January 2010, [these] will ultimately be incorporated into [one of] SNS, REAAL, ASN or Zwitserleven.
  11. ↑ NRC Handelsblad, SNS Reaal koopt Zwitserleven, 19 November 2007 klik hier voor artikel, geraadpleegd op 9 November 2012
  12. ↑ "Publication concerning the expropriation of SNS Reaal and SNS Bank | News item". Government.nl. 1 February 2013. Retrieved 5 January 2020.
  13. ↑ "Dutch nationalise SNS Reaal bank group in $14 billion rescue". Reuters. 1 February 2013.
  14. ↑ "In New Euro Boss, a Hard-Line Future", New York Times, 8 March 2013
  15. ↑ "SNS Reaal - Besluit Europese Commissie 2013" (PDF). Ministry of Finance (in Dutch). 18 December 2013.
  16. ↑ "NIBC acquires SNS Securities from SNS Bank". nibc.com. 18 December 2015. Retrieved 5 January 2020.
  17. ↑ "SNS Bank gaat verder als de Volksbank". BNR Nieuwsradio (in Dutch). 27 September 2016. Retrieved 5 January 2020.
  18. ↑ "Even voorstellen: de Volksbank N.V." snsbank.nl (in Dutch). 1 October 2016. Archived from the original on 1 October 2016. Retrieved 5 January 2020.
  19. ↑ "Verzekeringstak SNS Reaal gaat Vivat heten | NU - Het laatste nieuws het eerst op NU.nl". www.nu.nl. 30 June 2014. Retrieved 5 January 2020.
  20. ↑ "China's Anbang to buy SNS insurance arm in deal worth $1.6 billion" (Press release). Reuters. 16 February 2015.
  21. ↑ "SNS Reaal draagt Property Finance over | NU - Het laatste nieuws het eerst op NU.nl". www.nu.nl. 30 December 2013. Retrieved 5 January 2020.
  22. ↑ "Dijsselbloem zet Propertize in de verkoop". De Telegraaf (in Dutch). 16 October 2015. Archived from the original on 6 February 2016. Retrieved 5 January 2020.
  23. ↑ Zaken, Ministerie van Algemene (27 September 2016). "Kamerbrief afronding verkoop Propertize - Kamerstuk - Rijksoverheid.nl". www.rijksoverheid.nl (in Dutch). Retrieved 5 January 2020.
  24. ↑ DNB register levensverzekeraars
  25. ↑ Various reports SNS REAAL
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.