NN Group, the Dutch insurance and asset-management group, has announced a significant increase in its operating result for the first half of 2023. The company remains confident in meeting its financial targets for 2025.
Operating Result Surges to €1.4 Billion
In the six months ended June 30, NN Group’s operating result reached €1.40 billion ($1.52 billion), compared to €1.12 billion in the same period the previous year. This strong growth demonstrates NN Group’s resilience and efficiency in navigating the challenging market conditions.
Operating Capital Generation Exceeds Expectations
NN Group’s operating capital generation also witnessed a notable improvement, reaching €997 million, up from €899 million last year. This surpasses the estimated figure of €875 million based on a company-compiled consensus. The increase was mainly attributed to higher contributions from Netherlands Non-Life, Insurance Europe, and Banking. These positive developments more than offset the decline in operating capital generation at Netherlands Life, caused by adverse financial markets.
Net Profit Declines
While the company achieved impressive results on multiple fronts, its net profit experienced a decline. NN Group reported a net profit of €586 million for the first half of 2023, compared to €1.74 billion in the same period last year. It is worth noting that the significant divestment profits booked in the previous year contributed to the contrasting figures.
Solvency II Ratio Reflects Financial Stability
NN Group maintains its strong financial stability, as indicated by its solvency II ratio at the end of the reporting period. The ratio stood at 201%, surpassing the consensus estimate of 192% and demonstrating an improvement from 197% six months prior. This solid solvency position provides stability and confidence to stakeholders and customers alike.
Interim Dividend Announcement
The board of NN Group has declared an interim dividend of €1.12 per share, aligning with market expectations. This dividend distribution underlines NN Group’s commitment to delivering value to its shareholders.
In conclusion, NN Group’s strong performance in the first half of 2023 reflects its resilience and ability to adapt to changing market conditions. With promising operating results and a solid financial position, the company is well-positioned to achieve its long-term objectives.
