Slide 1: NN Group 1H22 results
NN Group 1H22 results 11 August 2022
Slide 2: 1H22 highlights
1H22 highlights David Knibbe, CEO
Slide 3: Creating value for all stakeholders
Creating value for all stakeholders Helping customers • Assisting customers during the February storm by upscaling service centres and enabling rapid onsite when it matters assessments to facilitate the fast settlement of claims and commencement of repair work most • Customer satisfaction: 4 units s
Slide 4: Strong capital generation and solid business results in 1H22
Strong capital generation and solid business results in 1H22 Strong capital generation reflecting solid Operating capital Value of new business business performance; generation Well on track to achieve 2023 OCG target EUR 899m EUR 254m of EUR 1.5bn 1H21: EUR 780m 1H21: EUR 242m Solvency ratio Holdin
Slide 5: Good commercial performance
Good commercial performance Value of new business1 (EURm) • Value of new business (VNB) of EUR 254m, up 5% on 1H21 • VNB up at Netherlands Life driven by a higher volume of group pension contracts • VNB at Insurance Europe down due to higher interest rates and sale of Bulgarian 254 242 business, par
Slide 6: Attractive capital returns to shareholders
Attractive capital returns to shareholders Dividends1 (EUR) Share buybacks2 (EURm) 2022 interim dividend • Proposed 2022 interim dividend of EUR 1.00 per 2.49 1,000 share, or EUR 294m based on current number of 2.33 2.16 outstanding shares 1.90 1.66 1.56 • Calculated as 40% of the prior year full-ye
Slide 7: 1H22 results
1H22 results Annemiek van Melick, CFO
Slide 8: Solvency ratio at 196%
Solvency ratio at 196% • OCG up 15% to EUR 0.9bn adding 10%-points to Solvency +10% the Solvency ratio ratio 213% 209% 196% • Market impacts mainly reflects lower equity -12% -1% -14% markets, changes in credit spreads and higher 20.9 0.9 interest rates, partly compensated by flattening 1.1 19.8 18.
Slide 9: High-quality investment portfolio
High-quality investment portfolio Investment portfolio (NN Group excl. banking)1 • Conservative investment portfolio (at 30 June 2022) • High-quality government bond and mortgage portfolio • Underweight to corporate bonds Fixed income Real estate 5% • Dutch mortgages continue to be an attractive ass
Slide 10: Strong operating capital generation in 1H22
Strong operating capital generation in 1H22 OCG1 by segment (EURm) 1H22 1H21 Developments 1H22 versus 1H21 Netherlands Life 580 395 • Mainly driven by the lower net negative impact of UFR drag and risk margin release as a result of higher interest rates, as well as positive experience variance Nethe
Slide 11: Holding company cash capital of EUR 2.5bn
Holding company cash capital of EUR 2.5bn Movement in holding company cash capital (EURm) • Free cash flow to the holding of EUR 735m driven by remittances received from subsidiaries 1,626 Free cash flow EUR 735m • Cash divestments proceeds of EUR 1,626m -524 following completion of the sale of NN I
Slide 12: Solid financial performance
Solid financial performance Operating result 1H22 operating result to net result Net result (EURm) (EURm) (EURm) Operating result 983 +42% -12% Non-operating items1 277 1,119 2,006 983 Special items -59 Acquisition intangibles 1,414 -16 and goodwill Result on divestments 1,062 Taxation -234 Minority
Slide 13: Operating result by segment
Operating result by segment Operating result (EURm) 1H22 1H21 Developments 1H22 versus 1H21 Netherlands Life 552 520 • Reflecting higher fees and premium-based revenues, lower administrative expenses and a higher investment margin Netherlands Non-life 127 189 • Reflecting lower underwriting results
Slide 14: Key takeaways
Key takeaways David Knibbe, CEO
Slide 15: Key takeaways
Key takeaways Strong capital generation: up 15% to EUR 899m driven by solid business performance Good commercial performance: VNB up 5% to EUR 254m Resilient balance sheet: Solvency ratio at 196%, holding company cash capital at EUR 2.5bn and leverage ratio of 21.7% Attractive capital returns to sha
Slide 16: Q&A
Q&A David Knibbe, Annemiek van Melick, Bernhard Kaufmann
Slide 17: Appendices
Appendices @»s
Slide 18: Creating value for all stakeholders
Creating value for all stakeholders KPIs and targets 30 June 22 31 Dec 21 30 June 21 Excellent Customer engagement 4 units 5 units 3 units customer All insurance business units scoring above market average NPS1 by 2023 experience Brand consideration2 21% 23% 21% 28% by 2023 Engaged Employee engageme
Slide 19: Operating capital generation by source
Operating capital generation by source OCG1 by source (EURm) 1H22 1H21 OCG3 sensitivities (EURm, 30 June 2022) Investment return 702 647 Parallel shock mortgage spreads +50bps +88 Life – UFR drag -318 -431 Parallel shock interest rates +50bps +40 Life – Risk margin release 165 204 Life – Experience
Slide 20: Solvency sensitivities
Solvency sensitivities Δ OF Δ SCR Δ SII ratio Sensitivities to market shocks at 30 June 20221 (EURbn) (EURbn) (%-points) Interest rate: Parallel shock +50bps -0.2 -0.1 -1% Interest rate: Parallel shock -50bps +0.2 +0.1 +0% Interest rate: 10bps steepening between 20y–30y -0.3 +0.1 -5% Credit spread:
Slide 21: Strong balance sheet with ample flexibility
Strong balance sheet with ample flexibility Eligible Own Funds and SII headroom1 (EURbn) Headroom RT1/T2/T3 Credit ratings RT1 T2+T3 headroom 18.5 Financial Strength Rating 30 Jun 22 31 Dec 21 headroom EUR 0.9bn EUR 1.2bn 1.8 1.0 A A 2.3 Standard & Poor's Positive Stable 11.6 1.8 AA- AA- Fitch Stabl
Slide 22: Remittances from subsidiaries
Remittances from subsidiaries Remittances from subsidiaries (EURm) 1H22 1H21 FY21 FY20 Netherlands Life1 520 520 1,048 930 Netherlands Non-life1 74 85 123 62 Insurance Europe1,2 133 125 192 77 Japan Life 75 146 146 119 Asset Management - 60 110 81 Banking1 112 13 138 1 Reinsurance business 45 30 60
Slide 23: Important legal information
Important legal information NN Group’s Consolidated Annual Accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS-EU”) and with Part 9 of Book 2 of the Dutch Civil Code. In preparing the financial information in this document, the
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