NN Group to sell its Turkish business to Zurich Türkiye
Today, NN Group announces that it has reached an agreement to sell its Turkish operations to Zurich Türkiye.
Since 2009 NN has been present in Turkey offering pension, life insurance, and complementary health insurance products. With more than 180 employees, NN Hayat ve Emeklilik serves its customers through a strong network of independent agencies. The contribution of NN Hayat ve Emeklilik to NN Group’s operating result is limited and the sale is expected to have a negligible impact on NN Group’s Solvency II ratio.
Frank Eijsink, CEO of NN International Insurance: ‘The decision to sell our Turkish operations is the result of a thorough process. After careful consideration, we concluded that a divestment of our Turkish activities would be in the best interest of our local customers, employees, and other stakeholders. We are confident that Zurich Türkiye is well positioned to further develop the Turkish business by increasing its scale and overall market position. I would like to thank our colleagues and our agents in Turkey for their valuable contribution and dedication over the past 15 years. We wish them all the best with Zurich Türkiye going forward.’
The transaction is subject to regulatory and antitrust approvals and is expected to close ultimately in the first quarter of 2025.
NN Group reports strong delivery towards targets
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.’
Wilbert Ouburg to succeed Bernhard Kaufmann as CRO of NN Group
NN Group announced that Wilbert Ouburg, currently Chief Risk Officer (CRO) of Nationale-Nederlanden Life and Pensions, will be appointed as Chief Risk Officer (CRO) and member of the Management Board of NN Group as of 1 October 2024, subject to approval by the Dutch Central Bank. He succeeds Bernhard Kaufmann who will step down as of 30 September 2024 to join Helvetia Group as Chief Risk Officer. Bernhard Kaufmann joined NN Group in June 2020 as CRO of NN Group and member of the Management Board. In this role, he was responsible for NN Group’s risk management & actuarial functions, and NN Re.
Wilbert Ouburg (1985, Dutch) joined NN Group in 2017 as Head of Risk Models, where he played an important role in the expansion of NN’s Partial Internal Model. In 2021, he was appointed CRO at Nationale-Nederlanden Life and Pensions, contributing to the business unit’s strong risk management capabilities, active management of longevity risk, and improved financial strength through optimisation of risk and return. Prior to joining NN Group, Wilbert held various expert and management positions at Delta Lloyd. Wilbert brings valuable expertise within the risk domain and deep knowledge of the insurance sector and financial markets.
David Knibbe, CEO of NN Group: ‘It is with pleasure that we announce the appointment of Wilbert, as the new CRO of NN Group. His expertise and extensive knowledge of the insurance industry, coupled with his leadership skills, will be valuable in taking our risk management culture and capabilities forward. At the same time, on behalf of the Management Board, I would like to thank Bernhard for his dedication to NN and the team. Under his leadership, NN Group’s risk management was further strengthened, and NN maintained a strong financial position during a period characterised by macroeconomic and geopolitical uncertainties. We would like to wish both Bernhard and Wilbert all the best in their new roles.’
NN Group reports strong OCG and solid business performance in first half of 2023
Strong operating capital generation and resilient balance sheet, driving continued strong capital returns for shareholders
Operating capital generation (OCG) showed a year-on-year increase of 14.8% to EUR 997 million in the first half of 2023 on a like-for-like basis, reflecting higher contributions from Netherlands Non-life, Insurance Europe and Banking; underscoring the strength of our diversified portfolio of businesses
NN Group Solvency II ratio increased to 201% from 197% at 31 December 2022, mainly driven by strong OCG, partly offset by capital flows to shareholders
Committed to capital return policy of a progressive dividend per share and annual share buyback of at least EUR 250 million; 2023 interim dividend of EUR 1.12 per ordinary share
Updated combined ratio guidance to 91-93% from 93-95% at Netherlands Non-life in 2025 to reflect the discounting effects arising from the move to IFRS 17 accounting standards as well as continued strong business performance
Operating result increased by 24.5% to EUR 1.40 billion from EUR 1.12 billion in the first half of 2022, reflecting improved results across most segments. The net result in the first half of 2023 was EUR 0.6 billion. As of this reporting period results are based on IFRS 9 and IFRS 17; all comparative results have been restated
Solid business performance despite volatile macroeconomic environment
Strong net inflows of EUR 1.3 billion at our Defined Contribution pension business in the Netherlands; up from EUR 0.9 billion in the first half of 2023
Commercial momentum at Insurance Europe continued, driven by higher sales and benefitting from the acquired MetLife businesses
Strong combined ratio of 90.1% at Netherlands Non-life; Banking benefited from higher interest result
Value of new business (VNB) was EUR 195 million, down from EUR 257 million in the first half of 2022, mainly driven by lower sales and negative currency impact at Japan Life
Good progress on execution of strategy focused on customers, people and society
Customer satisfaction scores in European markets showing upward trend; Dutch and International Insurance businesses on par with market average, supported by digitalisation and artificial intelligence (AI)
Employee engagement remains high at 7.9, reflecting our efforts to further develop an attractive and inclusive workplace in a tight labour market
Continued progress on our sustainability efforts, with EUR 9 billion total investments in climate solutions; disclosure of first interim net-zero targets for our mortgage and insurance underwriting portfolios
Statement of David Knibbe, CE
‘Today we are reporting strong results for the first half of 2023 and good progress on our strategic and financial targets, underscoring the strength of our diversified portfolio of businesses in this uncertain macroeconomic environment. Operating capital generation (OCG) rose 14.8% to EUR 997 million compared with the first half of 2022, excluding the impact of the sale of our asset management business in April 2022. This reflects strong business performances from Netherlands Non-life, Insurance Europe and Banking, more than offsetting a decrease in OCG at Netherlands Life mainly due to adverse financial markets. Our capital position remains resilient, and we continue to be comfortable with the high quality of our investment portfolio.
Our commercial performance was solid across our businesses. Netherlands Life realised net inflows of EUR 1.3 billion at its Defined Contribution pension business, a significant increase compared with EUR 0.9 billion in the first half of 2022, reflecting our strong position in the Dutch pension market. Netherlands Non-life reported a strongly improved combined ratio of 90.1%, benefitting from a favourable claims experience supported by benign weather, as well as higher interest rates. Commercial momentum at Insurance Europe continued, as reflected by higher sales across the region despite inflationary pressures in many of our markets.
We continued to make progress on our strategy focused on customers, our talented people and our contribution to society. We became one of the first companies to work with ChatGPT in our own secure environment as part of our focus to enhance our digital capabilities to further improve the customer experience. The technology is currently being used in our call centres and more than 4,000 colleagues have access to the tool, partly to identify further opportunities for application across our business. In the Netherlands, we are intensifying efforts to help our customers navigate the changes in the pension market following the adoption of the pension reform by the Dutch Senate in May. Throughout our European markets, we are stepping up efforts to respond to the rise in mental health problems with additional products and services. From July onwards, we have been supporting customers faced with damages caused by the extreme weather this summer.
We are pleased with the continued high engagement levels of our people, as reflected by an employee engagement score of 7.9, unchanged from the end of 2022. This demonstrates our focus on building an attractive and inclusive workplace in a tight labour market, for example by supporting our colleagues’ well-being and offering opportunities to grow. We continue to make progress on embedding sustainability into everything we do. We launched a EUR 300 million investment fund for infrastructure climate solutions, we further tightened our stance on proprietary investments in the oil and gas sector, and this summer we published our first interim net-zero targets for our residential mortgages and insurance underwriting portfolios.
With these results, we remain well on track to deliver on our ambitious strategic and financial targets for 2025 despite the ongoing macroeconomic challenges. We would like to thank our customers, our people and our shareholders for their continued trust and commitment.’
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Frank Eijsink appointed CEO International Insurance of NN Group
NN Group announced that Frank Eijsink, currently CEO of NN Belgium, will be appointed as Chief Executive Officer of International Insurance and member of the Management Board of NN Group as of 1 September 2023, subject to approval by the Dutch Central Bank. He succeeds Fabian Rupprecht who steps down as of 30 June to join Swiss insurer, Helvetia Group, as Chief Executive Officer. In his new role, Frank will be responsible for NN’s international insurance businesses in Europe. NN Japan will report to Leon van Riet, CEO Netherlands Life & Pensions and Member of the Management Board of NN Group.
Frank Eijsink (1973, Dutch) has 20 years of international leadership experience and business know-how in insurance and finance. He joined ING in 2003 as Principal Corporate Strategist and since then has held various senior leadership positions, including Head of Finance Strategy at NN Insurance Europe, CEO of NN Hayat ve Emeklilik in Turkey, CEO of NN Life Japan, and since February 2022, CEO of NN Life Belgium. He has a proven track record of successful strategy execution, business growth and digital transformation.
David Knibbe, CEO of NN Group: ‘We are pleased to have found a strong successor for Fabian from within NN, testament to the talent we have in the company. Over the past years, Frank has made a significant contribution in different parts of NN. His in-depth knowledge of insurance, coupled with his values-based leadership skills, international experience and focus on digitalisation, will be pivotal in further strengthening the growth of NN Insurance Europe.’
NN Group announces stock fraction for 2022 final dividend and repurchase of shares to neutralise stock dividend
As announced on 16 February 2023, NN Group shareholders were given the option to receive the final dividend for 2022 of EUR 1.79 per ordinary share either in cash or in ordinary shares.
Shareholders who have elected to receive the final dividend in shares will receive one NN Group N.V. ordinary share for every 18.08 ordinary shares held. The stock fraction is based on the volume-weighted average price of EUR 32.3638 for NN Group shares on Euronext Amsterdam for the five trading days from 16 June 2023 up to and including 22 June 2023. Any remaining stock fractions will be paid in cash. The stock and cash dividend are approximately equal in value. For shareholders that have not made a choice during the election period, the dividend will be paid in cash.
Shareholders representing approximately 47.71% of the outstanding number of shares have elected to receive the final dividend in ordinary shares. Consequently, 7,289,612 ordinary shares will be delivered from NN Group treasury shares.
NN Group will neutralise the dilutive effect of the stock dividend through the repurchase of ordinary shares for a total amount of EUR 235 million, equivalent to the value of the stock dividend. These share buybacks will be executed by financial intermediaries under a share buyback programme which is expected to end no later than 25 August 2023. The shares will be repurchased at a price that does not exceed the last independent trade or the highest current independent bid on the relevant trading platform. The share buyback programme will be executed within the limitations of the existing authority granted by the General Meeting on 2 June 2023, and will be performed in compliance with the safe harbour provisions for share buybacks. NN Group intends to cancel any repurchased NN Group shares under the programme unless used to cover obligations under share-based remuneration arrangements or to deliver stock dividend.
This programme is in addition to the existing share buyback programme for a total amount of EUR 250 million that was announced on 16 February 2023. NN Group reports on the progress of the share buyback programmes on its corporate website on a weekly basis.
Payment of the dividend in cash, after deduction of withholding tax if applicable, or payment of the dividend in the form of ordinary shares, as well as settlement of fractions in cash will take place on 29 June 2023.
Fabian Rupprecht to leave NN Group
NN Group announces today that Fabian Rupprecht will step down as member of the Management Board of NN Group and Chief Executive Officer of International Insurance, as of 30 June 2023. Fabian will join Swiss insurer Helvetia Group, as Chief Executive Officer, effective 1 October 2023. Further announcements on the succession will be made in due course.
Fabian Rupprecht joined NN Group in August 2018 as CEO International Insurance of NN Group and member of the Management Board. In this role, he was responsible for NN’s international insurance businesses in Europe and Japan.
David Knibbe, CEO of NN Group: ‘Over the past years, Fabian has made a significant contribution to the development of our company. Under his leadership, we further developed our protection business and accelerated our digital transformation leading to considerable growth and improved customer engagement within our international businesses. On behalf of the Management Board, I would like to thank Fabian for his dedication to NN. We wish him all the best in his new role.’
Fabian Rupprecht, CEO International Insurance of NN Group: ‘It has been a great pleasure to be part of NN and to work with so many passionate and committed teams. I want to thank my colleagues in the Management Board and all the colleagues within the International business units for the cooperation over the years. I wish NN great success in the future.’
NN Group: Strong OCG and resilient commercial performance for second-half and full-year 2022
Operating capital generation (OCG) increased to EUR 812 million from EUR 804 million in the second half of 2021 despite the sale of the Asset Management business (NN IP), reflecting a higher contribution from Netherlands Life and Insurance Europe; Full-year 2022 OCG up 8.0% to EUR 1,711 million
NN Group Solvency II ratio of 197% versus 196% at 30 June 2022, reflecting strong OCG and asset and liability management transactions, partly offset by market impacts and deduction of the proposed 2022 final dividend
Proposed 2022 final dividend of EUR 1.79 per ordinary share, bringing total 2022 dividend to EUR 2.79 per ordinary share, up 12% on 2021
New share buyback programme for an amount of EUR 250 million
Operating result of EUR 760 million versus EUR 917 million in the second half of 2021, largely due to the sale of NN IP; Full-year 2022 operating result of EUR 1,743 million compared with EUR 2,036 million in 2021
Net result of EUR -444 million versus EUR 1,864 million in the second half of 2021, reflecting negative real estate revaluations and impairments on equity securities, while the comparative period included gains on the sale of public equities and government bonds as well as positive real estate revaluations; Full-year 2022 net result of EUR 1,562 million versus EUR 3,278 million in 2021
Resilient commercial performance
Value of new business (VNB) of EUR 177 million versus EUR 186 million in the second half of 2021, mainly reflecting lower VNB at Insurance Europe as a result of the negative impact of discounting at higher interest rates; Full-year 2022 VNB up 0.7% to EUR 431 million
Strong net inflows of EUR 2.0 billion in Defined Contribution pension business in 2022
NN Bank and Woonnu originated EUR 8.7 billion of new mortgages in 2022, maintaining a stable market share
Strong focus on customers, employees and society
8 of our 11 Dutch and International businesses score on or above market average Net Promoter Score (NPS-r)
Employee engagement increased to 7.9 from 7.7 in June 2022
Percentage of women in senior positions increased to 40% from 39% in June 2022
Total investments of around EUR 3 billion as part of target EUR 6 billion additional investments in climate solutions
Climate Action Plan published, setting out a clear roadmap to reduce greenhouse gas emissions to net-zero
229,000 people reached via NN programmes to support their financial, physical and/or mental well-being
Statement of David Knibbe, CEO
‘Despite the challenging economic and geopolitical environment, we see good progress on the execution of our strategy, and we are pleased to report a resilient commercial performance for the second-half and full-year 2022.
With the full-year operating capital generation of more than EUR 1.7 billion, we have exceeded our 2023 target of EUR 1.5 billion. This result reflects the impact of higher interest rates and a strong business performance of Netherlands Life and Insurance Europe and was despite the sale of our asset management business NN IP. Our balance sheet remains strong, with a Solvency II ratio of 197% at year-end 2022, giving us ample financial flexibility and allowing us to continue to deliver solid capital returns to shareholders.
At Netherlands Life, we attracted net inflows in the Defined Contribution pension business of EUR 1.1 billion in the second half of the year. Netherlands Non-life reported a strong combined ratio of 95.4% reflecting improved D&A results partly offset by lower P&C results. And despite the slowing down of the Dutch housing market, NN Bank maintained its market share and originated in total EUR 3.8 billion of new mortgages during the second half of the year.
While we may see some short-term pressure on sales in Europe due higher prices and lower disposable incomes, we expect the structural demand for protection products to result in sales growth over time. In the second half of the year, the MetLife businesses that we acquired in Poland and Greece, delivered a positive contribution to the operating capital generation, sales, and value of new business of Insurance Europe.
We continue to focus on executing our strategy, which is centered around customer engagement, our talented people, and our contribution to society. We measure customer satisfaction based on Net Promoter Scores (NPS). Based on the latest scores, 8 of our 11 business units scored an at or above market average NPS. We have the strong ambition to further improve the customer experience we offer and enhance our scores. Within NN Life, the pension intermediary satisfaction increased from 7.6 in 2021 to 7.8 in 2022, ranking first in the Dutch market.
Especially in today’s competitive labour market, we are pleased with the high levels of engagement of our people, represented in an increased employee engagement score of 7.9. Our efforts in the area of reporting transparently on gender equality has again resulted in an inclusion in the Bloomberg Gender Equality Index. In 2022, for the first time, the number of women in senior management positions has increased to 40%.
In December, we published our first Climate Action Plan, which sets out a clear roadmap to reduce greenhouse gas emissions to net-zero in our own operations by 2040, as well as in our investments and insurance underwriting by 2050. Together with other insurers, we launched a target setting protocol to set science-based targets to transition our underwriting portfolios to net-zero. We are pleased to be included in the Dow Jones Sustainability Indices for the sixth year in a row.
In November 2022, we announced new strategic and financial targets for 2025, reaffirming our commitment to create long-term value for all our stakeholders. We aim to deliver EUR 1.8 billion of OCG by 2025 and a mid single-digit growth of OCG and free cash flow in the long term. We have announced today a proposed final dividend of EUR 1.79 per share, bringing the total dividend for 2022 to EUR 2.79 per share, an increase of 12% on 2021. In line with our capital return policy, we have also announced a new share buyback programme for an amount of EUR 250 million.’
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NN Group completes the legal mergers of the former MetLife businesses in Poland and Greece
Today, NN Group announces that it has completed the legal mergers of the former MetLife businesses in Poland and Greece. The legal mergers follow the completion of the acquisition process of the former MetLife business operations in both countries.
In Greece, the legal merger became effective on 29 December 2022. In Poland, the life insurance companies of Nationale-Nederlanden Poland and the former MetLife Poland were legally merged on 2 January 2023.
NN Group agrees to sell former MetLife pension business in Poland to Generali
NN Group announces today that it has reached an agreement with Generali to sell the former MetLife pension business in Poland.
The pension business is part of the former MetLife activities in Poland that were acquired by NN Group in April 2022. The business has approximately EUR 2.4 billion of assets under management.
The decision to divest was made following a review of NN’s strategic options for the former MetLife pension business in Poland. The transaction does not impact the existing pension business of Nationale-Nederlanden Poland, which remains a market leader in the Polish pension market.
The sale is expected to have an immaterial impact on NN Group’s operating capital generation and operating result.
The transaction is subject to customary closing conditions and is expected to close ultimately in the first quarter of 2023.