Nn Group N.v. · EURONEXT:NN
Nn — Nn Group Nv Ord — FY2024 Earnings Presentation
34 slides from Nn's earnings presentation, Feb 20, 2025
Slide 1: NN Group FY24 results
NN Group FY24 results Continued strong business performance 20 February 2025
Slide 2: Continued strong business performance
Continued strong business performance David Knibbe, CEO
Slide 3: Today’s key takeaways
Today’s key takeaways Operating capital generation for 2024 of EUR 1.9bn, in line with our 2025 target Free cash flow up 8% YoY to EUR 1.5bn, well on track to deliver on EUR 1.6bn target in 2025 1 at top-end of 150-200% comfort range Robust capital position with a group solvency ratio of 194%, Excel
Slide 4: Continuing our attractive capital return trajectory
Continuing our attractive capital return trajectory Returned EUR 10bn to shareholders since IPO in 2014 8% increase of DPS versus 2023 Accumulated payout to shareholders1,2 (EURbn) DPS1 (EUR) Dividend per share1 3.44 3.44 3.20 Share buyback 2.79 Dividend 2.49 10.0bn 3.20 2.33 2.16 1.90 3.5bn 1.66 1.
Slide 5: On track to achieve strategic targets
On track to achieve strategic targets Excellent customer experience Engaged employees Above market average NPS-r1 of NL and Employee engagement of ≥ 8.0 by 2025 Women in senior management International by 2025 positions2 of ≥ 40% by 2025 7.8 7.9 40% 41% Netherlands: on par International: above On tr
Slide 6: Continued commercial momentum in Europe and Non-life
Continued commercial momentum in Europe and Non-life Insurance Europe outperforming, driven by profitable Netherlands Non-life continues strong performance protection sales and pension growth with ~4.5% GWP growth versus 2023 OCG (EURm) OCG and remittances (EURm) +13% 81% 81% 461 63% EUR 450m 422 38
Slide 7: Sustainable remittances in our leading Dutch Life business
Sustainable remittances in our leading Dutch Life business Sustainable remittances from NL Life Pension reform provides opportunity .. and 2) pension buyouts Remittances (EURm) for: 1) expansion of DC market.. • NL Life may selectively engage in buyouts, if DC AuM (EURbn) above double-digit IRR 1,17
Slide 8: Delivering on enhanced investor proposition
Delivering on enhanced investor proposition Strong business Resilient balance sheet Attractive capital return performance Group solvency ratio Delivering on financial targets 2025 Dividend per share 194% (31 December 2024) EUR 3.44 (2024 full-year dividend) Operating Capital Generation Higher capita
Slide 9: FY24 results
FY24 results Annemiek van Melick, CFO
Slide 10: Strong financial performance
Strong financial peformance Delivering on 2025 OCG and FCF ..while maintaining a strong balance ..and delivering attractive capital targets.. sheet and cash position.. distributions to shareholders Operating capital generation (EURm) Solvency II ratio (in %) Dividend per share (EUR) 2024 1,922 31 De
Slide 11: Robust capital supported by management actions
Robust capital supported by management actions 22% • FY24 operating capital generation of EUR 1,922m adds Solvency ratio 197% 208% 194% 22%-points to the solvency ratio -8% -3% -14% • Market variance mainly reflects wider government bond spreads and negative equity variance 1.9 17.7 18.3 17.0 • Othe
Slide 12: Real estate improvement and less volatile mortgage spread
Real estate improvement and less volatile mortgage spread Real estate valuations appreciated Dutch mortgages are a safe and Updated valuation approach better due to Residential attractive asset class reflects underlying economics NN Group’s real estate valuation changes (in %) Historical losses1 (in
Slide 13: Delivery on OCG remains strong
Delivery on OCG remains strong OCG1 by segment (EURm) FY24 FY23 Delta Continued strong OCG results from Europe and Non-life Netherlands Life 1,049 1,025 2% • Netherlands Life’s OCG increased despite negative experience variances, mainly driven by a higher investment return Netherlands Non-life 406 4
Slide 14: Operating result up driven by Insurance Europe growth
Operating result up driven by Insurance Europe growth Operating result (EURm) FY24 FY23 Higher operating result driven by growth of Insurance Netherlands Life 1,368 1,390 Europe, partly offset by Banking and Netherlands Life Netherlands Non-life 364 364 • Netherlands Life: lower operating result pri
Slide 15: Increasingly diversified and growing free cash flow
Increasingly diversified and growing free cash flow Delivering on mid-single digit FCF growth ambitions FCF (EURm) • Cash capital of EUR 1.3bn at the end of 2024, supported by strong free cash flow +7% • Free cash flow increasingly diversified, with future growth coming 1,600 1,519 mainly from Europ
Slide 16: Wrap up
Wrap up
Slide 17: Today’s key takeaways
Today’s key takeaways Operating capital generation for 2024 of EUR 1.9bn, in line with our 2025 target Free cash flow up 8% YoY to EUR 1.5bn, well on track to deliver on EUR 1.6bn target in 2025 1 at top-end of 150-200% comfort range Robust capital position with a group solvency ratio of 194%, Excel
Slide 18: Appendices
Appendices @»s
Slide 19: Solvency sensitivities
Solvency sensitivities Solvency ratio sensitivities to market shocks on 31 Dec 20241,2 Δ EOF Δ SCR Δ SII ratio (EURbn) (EURbn) (%-points) Base: 17.0 8.8 194% Interest rate: Parallel shock +50bps -0.4 -0.2 +0% Interest rate: Parallel shock -50bps +0.5 +0.2 -0% Interest rate: 10bps steepening between
Slide 20: Operating capital generation by segment
Operating capital generation by segment OCG1 by segment (EURm) 2H24 2H23 FY24 FY23 Netherlands Life 514 502 1,049 1,025 Netherlands Non-life 253 206 406 416 Insurance Europe 231 203 461 422 Japan Life 43 39 108 107 Banking 40 63 119 133 Other -118 -109 -221 -201 OCG 964 904 1,922 1,902 1. Operating
Slide 21: Operating capital generation by source
Operating capital generation by source OCG by source (EURm) 2H24 2H23 FY24 FY23 OCG sensitivities2 (31 Dec 2024, EURm) Δ OCG Investment return 681 605 1,351 1,226 Interest rates: Parallel shock +50bps +10 Life – UFR drag -72 -58 -152 -163 Interest rates: Parallel shock -50bps -30 Life – Risk margin
Slide 22: On track to deliver EUR 1.6bn free cash flow in 2025
On track to deliver EUR 1.6bn free cash flow in 2025 Movement in holding company cash capital (EURm) • FY24 free cash flow of EUR 1,519m driven by remittances from subsidiaries Free Cash Flow: EUR 1,519m1 -91 • Capital flows to shareholders reflects cash dividends paid -267 and share buybacks FY24 1
Slide 23: Remittances from subsidiaries
Remittances from subsidiaries Remittances from subsidiaries (EURm) 2H24 2H23 FY24 FY23 Netherlands Life1 531 530 1,061 1,059 Netherlands Non-life1 166 229 329 335 Insurance Europe1,2 65 52 226 370 Japan Life - - 63 68 Banking1 25 21 85 21 Reinsurance business 50 - 110 - Other 3 1 3 1 Total 840 832 1
Slide 24: Robust capital, supported by management actions
Robust capital, supported by management actions 11% 5% • 2H24 operating capital generation adds 11%-points to Solvency ratio 192% 200% 194% the solvency ratio -8% -7% • Market impact mainly reflects wider government bond and mortgage spreads, as well as unfavourable 1.0 interest rate movements 17.4
Slide 25: Strong balance sheet and financial flexibility
Strong balance sheet and financial flexibility Eligible Own Funds and SII headroom (31 Dec 2024, EURbn) Headroom RT1/T2 Credit ratings RT1 headroom T2 headroom 17.0 Financial 31 Dec 31 Dec EUR 0.7bn EUR 0.3bn 1.1 2.2 Strength Rating 2024 2023 9.6 2.4 1.8 A+ A+ Standard & Poor's Stable Stable AA- AA-
Slide 26: High-quality investment portfolio
High-quality investment portfolio Investment portfolio (NN Group excluding banking)1 • High-quality and conservative investment portfolio (31 Dec 2024) • Diversified real estate exposure across segments and regions 5% Fixed income • Core profile and strong occupancy rate >95% 2% 4% Real estate • Abi
Slide 27: Investment portfolio
Investment portfolio Investment portfolio (NN 31 Dec 31 Dec % of Total investment exposure decreased mainly due to a Change Group excl banking)1 2024 2023 total decrease in the mortgage portfolio Fixed income (excl mortgages2) 73.6 73.8 -0.2 54% • Fixed income portfolio relatively stable, with purch
Slide 28: Details of fixed income portfolio
Details of fixed income portfolio 31 Dec 31 Dec % of • Core of fixed income portfolio consists of AAA-A rated Fixed income1 2024 2023 Change total government bonds Government2 39.3 39.8 -0.5 29% • Fixed income portfolio relatively stable, with purchases of Corporates2 23.3 23.3 0.0 17% government bo
Slide 29: Well-collateralised Dutch mortgage portfolio
Well-collateralised Dutch mortgage portfolio 31 Dec 31 Dec % of • Very comfortable average loan to • NN Group mortgage portfolio Mortgages1,2 2024 2023 total value of 531%, with the vast majority experienced very limited losses NHG and other guaranteed3 8.1 9.6 24% reflecting LTV <80% <10bps during
Slide 30: Well-diversified and high-quality real estate portfolio
Well-diversified and high-quality real estate portfolio Real estate exposure by segment1 Occupancy rate by segment • Actively managed portfolio; well-diversified (9% of investment portfolio, 31 December 2024) (31 December 2024 upper line versus 31 Dec 2023) across segments, geographies and investmen
Slide 31: Details of corporate bond and equity portfolio
Details of corporate bond and equity portfolio Corporate bonds and loans by rating Equity exposure including mutual funds (17% of investment portfolio, at 31 December 2024) (3% of investment portfolio, at 31 December 2024) 4% AAA Public equity 15% 8% AA Private equity EUR 41% EUR A Equity in mutual
Slide 32: IFRS 9/17 - Sustainable CSM growth expected
IFRS 9/17 - Sustainable CSM growth expected Netherlands Netherlands Insurance Contractual Service Margin (EURm) NN Group Life Non-life Europe Japan Life Other Opening CSM, net (31 Dec 2023) 6,443 3,182 495 1,806 955 5 New business added 664 119 83 354 108 0 Underlying return on in-force 135 -30 7 15
Slide 33: 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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