Slide 1: NN Group 2H22 results
NN Group 2H22 results 16 February 2023
Slide 2: 2H22 and FY22 highlights
2H22 and FY22 highlights David Knibbe, CEO
Slide 3: Good progress on strategic targets for Customers, Employees and Society
Good progress on strategic targets for Customers, Employees and Society Above market average Net Promoter Employee engagement2 of ≥ 8.0 by 2025 Diversity: Women in senior management Score (NPS-r) of Netherlands and positions3 of ≥ 40% by 2025 International1 by 2025 7.9 7.7 7.9 40% 33% 34% Netherland
Slide 4: Strong financial performance in 2022
Strong financial performance in 2022 Operating capital Value of new business Operating capital generation up 8% reflecting generation strong business performance … EUR 1,711m EUR 431m 2021: EUR 1,584m 2021: EUR 428m Solvency ratio Holding company cash … while maintaining a robust balance sheet and c
Slide 5: Resilient commercial performance
Resilient commercial performance Value of new business1 • Total value of new business (VNB) up 1% on 2021 despite challenging market conditions (EURm) • Higher VNB at Netherlands Life driven by higher sales volumes as well as higher profit margins 428 431 • VNB at Insurance Europe down mainly due to
Slide 6: Solid underlying performance at the business units
Solid underlying performance at the business units • Strong DC customer retention and new business supported by leading pension adviser satisfaction scores Netherlands • Continued focus on expense reduction in line with portfolio run-off Life • Acquisition of ABN AMRO Life business closed, bringing
Slide 7: Attractive capital returns to shareholders
Attractive capital returns to shareholders Dividend per share1 (EUR) Share buybacks2 (EURm) 2022 final dividend 12% • Proposed 2022 final dividend of EUR 1.79 per share, 2.79 1,000 or EUR 504m based on current number of 2.49 outstanding shares (net of treasury shares) 2.33 2.16 1.90 • Total 2022 div
Slide 8: 2H22 and FY22 results
2H22 and FY22 results Annemiek van Melick, CFO
Slide 9: Solvency ratio stable at 197%
Solvency ratio stable at 197% +9% +9% • Stable Solvency ratio at 197% Solvency ratio 196% 203% 197% • 2H22 operating capital generation of EUR 0.8bn -10% -6% adding 9%-points to the solvency ratio • Market variance mainly reflects credit spread changes 0.8 18.5 0.2 18.3 17.8 and negative real estate
Slide 10: Solvency ratio supported by strong OCG in volatile markets
Solvency ratio supported by strong OCG in volatile markets +18% +8% • FY22 operating capital generation up 8% to EUR 1.7bn, Solvency ratio 213% 217% 197% adding 18%-points to the solvency ratio -22% -20% • Market variance mainly reflects changes in credit spreads and lower equity markets, partly off
Slide 11: Strong operating capital generation in 2H22 and FY22
Strong operating capital generation in 2H22 and FY22 OCG1 by segment 2H22 2H21 FY22 FY21 Developments 2H22 versus 2H21 (EURm) Netherlands Life 561 451 1,142 846 Mainly driven by lower net negative impact of UFR drag and risk margin release as a result of higher interest rates Netherlands Non-life 13
Slide 12: Holding company cash capital of EUR 2.1bn
Holding company cash capital of EUR 2.1bn Movement in holding company cash capital • FY22 adjusted free cash flow of EUR 1,393m (EURm) Adjusted FCF: EUR 1,393m1 driven by remittances from subsidiaries FCF: EUR 893m 1,626 • Change in debt and loans reflects repayment of 1,753 EUR 600m senior notes in
Slide 13: FY22 operating result of EUR 1.7bn
FY22 operating result of EUR 1.7bn Operating result (EURm) 2H22 2H21 FY22 FY21 Developments 2H22 versus 2H21 Netherlands Life 447 466 999 986 Mainly reflecting lower investment margin as 2H21 included special dividends, while lower fees and premium-based revenues were offset by higher technical marg
Slide 14: Net result impacted by non-operating items
Net result impacted by non-operating items Operating result 2H22 operating result to net result Net result • 2H22 net result reflects (EURm) (EURm) (EURm) EUR -1,271m of non-operating items, which include: Operating result 760 2,036 • Gains/losses and impairments Non-operating items1 -1,271 3,278 of
Slide 15: Key takeaways
Key takeaways David Knibbe, CEO
Slide 16: Key takeaways
Key takeaways Continued focus on creating value for customers, employees and society; good progress towards achieving strategic targets FY22 operating capital generation up 8% on FY21, reflecting strong business performance Resilient commercial performance: FY22 VNB of EUR 431m Robust balance sheet
Slide 17: Q&A
Q&A David Knibbe, Annemiek van Melick, Bernhard Kaufmann
Slide 18: Appendices
Appendices @»s
Slide 19: Operating capital generation by source and sensitivities
Operating capital generation by source and sensitivities 31 Dec OCG1 by source (EURm) 2H22 2H21 FY22 FY21 OCG sensitivities NN Group4 (EURm) 2022 Investment return 677 688 1,379 1,335 Interest rates: Parallel shock +50bps +15 Life – UFR drag -132 -394 -450 -825 Mortgage spreads: Parallel shock +50bp
Slide 20: Solvency sensitivities
Solvency sensitivities Solvency ratio sensitivities to market shocks at 31 December 20221,2 Δ EOF Δ SCR Δ SII ratio (EURbn) (EURbn) (%-points) Interest rate: Parallel shock +50bps -0.2 -0.1 +1% Interest rate: Parallel shock -50bps +0.3 +0.2 -2% Interest rate: 10bps steepening between 20y–30y -0.2 +0
Slide 21: High-quality investment portfolio
High-quality investment portfolio Investment portfolio (NN Group excl. banking)1 • Conservative investment portfolio (31 December 2022) • High-quality government bond and Dutch mortgage Fixed income portfolio 5% 2% 3% Real estate • ~92% of government bonds and ~42% of corporate bonds 9% Equity have
Slide 22: 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 17.8 Financial Strength Rating 31 Dec 22 30 Jun 22 headroom EUR 0.8bn EUR 1.1bn 2.1 0.9 A A 2.2 Standard & Poor's Positive Positive 10.9 1.7 AA- AA- Fitch Sta
Slide 23: Remittances from subsidiaries
Remittances from subsidiaries Remittances from subsidiaries (EURm) 2H22 1H22 FY22 FY21 FY20 Netherlands Life1 651 520 1,171 1,048 930 Netherlands Non-life1 102 74 176 123 62 Insurance Europe1,2 39 133 172 192 77 Japan Life - 75 75 146 119 Asset Management - - - 110 81 Banking1 1 112 113 138 1 Reinsu
Slide 24: 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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