Half Year 2026 NN Group NV Earnings Call Transcript

Aug 6, 2026 / 07:00 AM GMT

Release Date Price: €80 (-0.99%)

Transcript

Key Points

Positve

NN Group NV (NNGPF) reported a 5% year-on-year increase in operating capital generation (OCG) to EUR1.1 billion, beating the flat guidance and driven by strong business growth in Europe.
The group's Solvency II ratio improved to 224%, boosted by the exclusion of the banking operations, which created a better level playing field and increased capital buffer.
The Future Ready program is ahead of schedule, having delivered 65% of its target annual savings of EUR200 million by the end of 2027, with 70% of the investment already completed.
Commercial momentum remains strong, with value of new business (VNB) up 16%, supported by a pension transaction in the Netherlands and a 14% increase in VNB in Europe, driven by higher sales volumes in risk protection products.
The interim dividend was increased by 12% to EUR1.55 per share, reflecting a strong track record of consistent capital returns to shareholders.
Netherlands Non-life delivered a strong combined ratio of 90.5%, ahead of the 91-93% target range, despite adverse weather events, thanks to strong performance in building insurance and margin improvements in motor.
The landmark reinsurance transaction in Japan reduced lapse risk and interest rate sensitivity, increased local equity by around EUR240 million, and improved capital fungibility, ensuring a sustainable remittance pattern.
Defined contribution (DC) assets under management in the Netherlands grew by 13% to EUR48 billion, supported by record net inflows of EUR1.7 billion, positioning the company well for the new pension framework.
AI adoption is scaling rapidly, with approximately half of the retail claims now straight-through processed, and the company is on track to reach close to 100% across the retail business, driving efficiency and customer satisfaction.
The company reaffirmed its confidence in achieving its 2028 targets, including OCG growth and free cash flow of more than EUR1.8 billion, with strong underlying growth across Europe and non-life offsetting headwinds.

Negative

In Japan, VNB decreased by 5% year-on-year on a constant currency basis due to the reemergence of short-term COLI products from new entrants, which weighed on sales momentum.
The company expects bank assurance sales in Greece to be substantially lower as of next year, which will have a negative impact on OCG in 2027, despite strong current performance.
Elevated disability incident rates, mainly due to mental health-related issues, have led to increased claim inflows and provisioning, impacting the reported OCG for non-life.
The proposed pension reform in Cefia will likely limit management fees that can be charged over SIZO management, creating a headwind for the European business.
Market variance decreased the solvency ratio by 5 percentage points, largely driven by widening government bond and mortgage spreads.
The CSM release in Japan is expected to decline further due to assumption changes and other movements, which will weigh on future earnings from the Japanese business.
The company noted that the bank's OCG is now set equal to net remittances, and the H1 2026 net remittances still include a one-off related to the Basel IV windfall, which will not repeat.
The operating result in Japan was down, largely driven by adverse exchange rates and a decline in the enforced book, partially offset by a more favorable mortality result.
The company faces a challenging competitive landscape in Japan, where it may need to adapt its offering to include short-term products if the market shift proves structural, which could require additional regulatory approvals.
While the company remains committed to M&A, the current market has more buyers than sellers, limiting opportunities for value-accretive acquisitions.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

NN.AS - NN Group N.V.
Half Year 2026 NN Group NV Earnings Call
Aug 06, 2026 / 07:00AM GMT

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Presentation
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Unidentified_1 [1]
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Good morning ladies and gentlemen, this is the operator speaking. Welcome to the NN Group's analyst conference call on its first half year 2026 results. The telephone lines will be in a listen-only mode during the company's presentation. The lines will then be open for a question-and-answer session. Before handing this conference call over to Mr. David Knibber, Chief Executive Officer of NN Group, let me first give the following statement on behalf of the company.

Today's comments are based on management's current views.

And assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those projected in any forward-looking statement. Such

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