Well positioned to deliver on targets and increased returns to shareholders
- Strong operating capital generation (OCG) of EUR 959 million in the first half of 2024, despite a slight decrease from the same period last year which benefitted from favourable claims; delivering towards OCG target of EUR 1.9 billion in 2025
- NN Group Solvency II ratio remains robust at 192% from 197% on 31 December 2023
- Free cash flow up 8% year-on-year to EUR 899 million, with contribution better diversified between business units
- Committed to capital return policy of a progressive dividend per share and annual share buyback of at least EUR 300 million; 2024 interim dividend of EUR 1.28 per ordinary share
- Operating result was EUR 1.3 billion and net result was EUR 0.6 billion in the first half of 2024
- Announcing a Capital Markets Day on 27 May 2025 to provide updates on strategy and targets
Strong business performance, benefitting from commercial momentum in Europe
- Value of new business increased to EUR 241 million in the first half of 2024 compared with EUR 195 million in the first half of 2023, due to an increased volume in Netherlands Life and good sales momentum in Insurance Europe
- Sustained growth in Europe with increased sales in Central and Eastern Europe, particularly notable in the value of new business of Greece, Czech Republic, and Poland
- Net inflows of EUR 1.2 billion in the defined contribution pension business in the first half of 2024
- Netherlands Non-life business maintains robust and positive performance, achieving a combined ratio of 92.2%
- Customer satisfaction scores continue positive trend; total investments in climate solutions at EUR 11.5 billion
Statement of David Knibbe, CEO
‘Today we are reporting strong results for the first half of 2024, highlighting we remain well on track to deliver on our strategic and financial targets for 2025. The results were driven by a continued solid financial and commercial performance in the Netherlands and our growing European markets. Operating capital generation (OCG) was EUR 959 million in the first half of 2024, compared with EUR 997 million in the first half of 2023, reflecting a lower contribution from Netherlands Non-life, which benefitted from favourable claims in the same period last year including benign weather. This was partly offset by higher contributions from Netherlands Life, Insurance Europe and our Banking business. Despite a number of large fire claims at the start of 2024, Netherlands Non-life continued its strong business performance with a combined ratio of 92.2%.
We continue to see high demand for our products and services as reflected by the higher value of new business, which increased by 23% to EUR 241 million in the first half of 2024, supported by higher pension volumes at Netherlands Life and solid sales of protection and pension products across our European markets. In addition, Netherlands Life reported net inflows of EUR 1.2 billion at its defined contribution pension business.
The results demonstrate the strength of our diverse businesses and the sustained execution of our strategy focused on our customers, our colleagues and contribution to society. Customer satisfaction scores, as measured by the relational Net Promoter Score (NPS-r), continued their underlying positive trend, especially in our international markets. Further improving the customer experience remains our focus in all our markets, and we are successfully scaling artificial intelligence (AI) applications across NN to support agents and our employees.
We continue to play our role in contributing to a more sustainable economy and society through our business activities and investments. In February, we committed EUR 350 million to finance a portfolio of assets in the coming years, focused on climate change mitigation and adaption and the broader energy transition. Total investments in climate solutions were EUR 11.5 billion by the end of the first half of 2024.
Our solid business performance and operating capital generation underpin our commitment to our capital return policy of a growing dividend per share and an annual share buyback of at least EUR 300 million. On 27 May 2025, we will host a Capital Markets Day to provide the market with an update of our strategy and targets. We would like to thank our customers, our colleagues, and our shareholders for their continued commitment and trust.’
