NN Group (NN) H1 2024 earnings summary

Executive summary

• Operating capital generation (OCG) reached EUR 959 million in H1 2024, down 3.9% year-over-year, but the group remains on track for the EUR 1.9 billion OCG target for 2025.

• Net result increased to EUR 648 million, up 10.5% year-over-year, driven by reduced negative market effects and strong Insurance Europe performance.

• Value of new business rose 23% to EUR 241 million, supported by higher volumes in Central and Eastern Europe and the Netherlands.

• Solvency II ratio stands at 192%, at the upper end of the 150%-200% comfort range.

• Interim dividend per share increased by 14% to EUR 1.28, with a policy of minimum EUR 300 million annual share buyback.

Financial highlights

• Gross premiums written increased 9.6% to EUR 7,937 million, mainly due to a pension buyout in the Netherlands and higher European sales.

• Free cash flow grew 8% to EUR 899 million in H1 2024.

• Operating result declined 5.1% to EUR 1,329 million, mainly due to lower investment results in Netherlands Life and higher claims in Non-Life.

• Cash capital at holding increased to EUR 1.4 billion, at the upper end of the EUR 0.5-1.5 billion range.

• Earnings per share (EPS) increased to EUR 2.21 (basic) from EUR 2.01 year-over-year.

Outlook and guidance

• On track to meet OCG target of EUR 1.9 billion and free cash flow target of EUR 1.6 billion for 2025.

• Dividend per share expected to grow 7%-8% per annum.

• Insurance Europe likely to reach EUR 450 million OCG target a year ahead of schedule.

• Capital Markets Day scheduled for 27 May 2025 to update strategy and targets.

• Growth in Japan Life expected to remain subdued until at least early 2025 due to regulatory actions.