NN Group (NN) H1 2025 earnings summary

Executive summary

• Operating capital generation rose 6% to EUR 1,020 million, driven by strong growth in Insurance Europe and Netherlands Non-life, and supported by the Future Ready programme targeting EUR 200 million annual benefits by 2027.

• Solvency II ratio increased to 208% (205% pro-forma), surpassing the 150%-200% comfort range, supported by favorable markets and refinancing activities.

• Interim dividend increased by 8% to EUR 1.38 per share, with ongoing share buybacks and a continued focus on progressive capital returns.

• Net result declined 40% year-over-year to EUR 391 million, mainly due to non-operating losses, government bond sales, derivative revaluations, and divestment costs.

• Commercial momentum continued in growth segments: Europe, Japan, and Netherlands Non-life, with VNB up 11% in Europe and 25% in Japan.

Financial highlights

• Operating result increased 8.6% to EUR 1,443 million, driven by higher investment returns in Netherlands Life and improved Non-life performance.

• Free cash flow reached EUR 863 million, slightly down year-over-year, but on track for the EUR 1.6 billion full-year target.

• Pro-forma Solvency II ratio at 205%, reported at 208%, above the comfort zone.

• Basic earnings per share dropped 40.5% to EUR 1.31.

• Gross written premiums and new sales (APE) both declined 6% year-over-year.

Outlook and guidance

• Upgraded 2025 OCG target to EUR 1.9 billion and reaffirmed 2028 target at EUR 2.2 billion, with growth led by Insurance Europe, Netherlands Non-life, and Japan.

• Free cash flow target of EUR 1.6 billion for 2025 and over EUR 1.8 billion by 2028 reaffirmed.

• Netherlands Non-life expected to deliver full-year OCG above EUR 400 million.

• Continued focus on digital transformation, operational efficiency, and sustainability, targeting 50% of new sales from digital leads in Insurance Europe by 2028.

• Capital return policy to be reviewed at full year results, with preference for incremental steps.