NN Group (NN) CMD 2025 summary

Strategic direction and growth targets

• Set ambitious 2028 targets: EUR 2.2 billion OCG and over EUR 1.8 billion free cash flow, representing a 7%-8% CAGR per share from 2025 levels, with growth driven by Insurance Europe, Netherlands Non-life, and Japan.

• Business mix is shifting, with over 55% of OCG expected from international, Non-life, and bank segments by 2028, reducing reliance on Dutch life and pensions.

• Remittances from life and pensions are projected to remain stable until at least 2040, with no expected cliff edge, supported by a slow 2% annual runoff and cost reductions.

• Capital return policy remains progressive, with incremental increases tied to solvency above 200%, DPS CAGR of 7-8%, and annual share buybacks of at least EUR 300 million.

• Resilient solvency and cash positions enable both shareholder returns and flexibility for organic or inorganic growth opportunities.

Digital transformation and Future Ready program

• EUR 450 million invested in the Future Ready program (2024-2027), targeting EUR 200 million recurring benefits by 2027, with benefits included in 2028 targets.

• AI and digitalization are being scaled across business units, with over 9,000 employees using GenAI tools, 1,300+ engineers on GitHub Copilot, and 1,500+ trained in data literacy.

• By 2028, aim for 300 live AI cases, 80% digital interactions, and 50% of tied agent sales from digital leads.

• Digitalisation and AI are transforming distribution, especially in tied agent channels, improving productivity and customer engagement.

• Ongoing training for all managers and employees ensures digital adoption and business-driven innovation.

Business unit performance and diversification

• Insurance Europe targets EUR 600 million OCG by 2028, focusing on high-margin, capital-light protection products and fee-based pensions.

• Non-life aims for EUR 475 million OCG in 2028, maintaining a 91%-93% combined ratio, leveraging broker networks and digitalisation.

• Japan expects to return to 2022 VNB levels by 2028, targeting EUR 160 million OCG, with new long-term products and regulatory changes.

• Dutch life and pensions project modest growth to EUR 1.1 billion OCG in 2028, with DC business and selective risk-taking as growth pockets.

• NN Bank anticipates stable dividends, modest OCG, and a net operating ROE above 12% with a cost/income ratio below 55% by 2028.