Nn Group N.v. · EURONEXT:NN
Nn — H2 2021 Earnings Presentation
23 slides from Nn's earnings presentation, Feb 17, 2022
Slide 1: NN Group 2H21 results
NN Group 2H21 results 17 February 2022
Slide 2: 2H21 and FY21 highlights
2H21 and FY21 highlights David Knibbe, CEO
Slide 3: Focus on creating value for customers, employees and society
Focus on creating value for customers, employees and society Delivering an • Customer satisfaction improved, with 5 units (1H21: 3 units) scoring above market average NPS1 excellent customer • Strong relationship with brokers and advisers reflected in high satisfaction scores experience Maintaining
Slide 4: Strong performance in 2H21
Strong performance in 2H21 Operating capital Value of new business Capital generation growth driven by generation strong business performance and EUR 804m EUR 186m commercial momentum … 2H20: EUR 450m 2H20: EUR 144m Solvency ratio Holding company cash … supporting a robust balance sheet and capital
Slide 5: Growth driven by strong contribution from all units throughout 2021
Growth driven by strong contribution from all units throughout 2021 Netherlands • Assets under management DC increased to EUR 30bn from EUR 25bn, Value of new business1 (EURm) Life reflecting market growth and net inflows • Buyout of Henkel pension fund in July with total assets of EUR 125m 428 21 N
Slide 6: OCG and FCF growth translates into substantial capital returns to shareholders
OCG and FCF growth translates into substantial capital returns to shareholders Operating capital generation Dividends1 (EUR, CAGR in %) Share buybacks2 (EURm) (OCG) (EURm) 1,584 7% 1,000 2.49 135 2.33 993 103 1.47 1.56 750 1,449 250 250 889 0.86 0.93 250 FY20 FY21 2020 2021 2020 2021 2022 Asset Mana
Slide 7: 2H21 and FY21 results
2H21 and FY21 results Delfin Rueda, CFO
Slide 8: Robust solvency ratio at 213%
Robust solvency ratio at 213% +9% +6% • Solvency ratio increased to 213% driven by Solvency ratio 209% 221% 213% operating capital generation and favourable -2% -4% -5% market impacts, partly offset by capital flows to shareholders and the acquisition of 0.8 21.8 0.8 20.9 Heinenoord 20.6 -0.3 -0.4 -
Slide 9: Solvency ratio supported by strong OCG in 2021
Solvency ratio supported by strong OCG in 2021 +18% +14% • Positive impact on the solvency Solvency ratio mainly reflecting operating ratio 210% 231% 213% -11% -5% -4% -10% capital generation and favourable market impacts, partly offset by 1.5 22.7 capital flows to shareholders 1.5 20.9 20.0 -0.3 -0
Slide 10: Strong OCG in 2H21 across all segments
Strong OCG in 2H21 across all segments OCG1 by segment 2H21 2H20 FY21 FY20 Developments 2H21 versus 2H20 (EURm) Netherlands Life 451 266 846 642 • Higher investment return as a result of changes in the asset portfolio and higher equity and real estate valuations Netherlands Non-life 163 14 325 76 •
Slide 11: Holding company cash capital of EUR 2.0bn
Holding company cash capital of EUR 2.0bn Movement in holding company cash capital (EURm) • Full-year 2021 free cash flow of Free cash flow EUR 693m 856 EUR 1.5bn driven by remittances 76 -13 597 1,998 received from subsidiaries 1,533 -150 -358 2H21 -544 • EUR 1.0bn of capital flows to shareholders
Slide 12: Strong financial performance across NN Group
Strong financial performance across NN Group Operating result 2H21 operating result to net result Net result +72% (EURm) (EURm) (EURm) +8% Operating result 917 3,278 2,036 1,889 Non-operating items1 1,332 Special items -56 +42% -5% Acquisition intangibles 1,904 963 -18 1,864 917 and goodwill Result
Slide 13: Operating result by segment
Operating result by segment Operating result (EURm) 2H21 2H20 FY21 FY20 Developments 2H21 versus 2H20 Netherlands Life 466 500 986 994 • Lower technical margin and higher expenses, partly compensated by a higher investment margin and higher fees and premium-based revenues Netherlands Non-life 125 10
Slide 14: Key takeaways
Key takeaways David Knibbe, CEO
Slide 15: Key takeaways
Key takeaways Focus on creating value for customers, employees and society Capital generation growth driven by strong business performance and commercial momentum Robust balance sheet and capital position: Solvency II ratio at 213%, holding company cash capital at EUR 2.0bn Sustainable and growing c
Slide 16: Q&A
Q&A David Knibbe, Delfin Rueda, Bernhard Kaufmann
Slide 17: Appendices
Appendices @»s
Slide 18: Creating value for all stakeholders
Creating value for all stakeholders KPIs and targets 31 Dec 21 30 Jun 21 31 Dec 20 Excellent Customer engagement 5 units 3 units 4 units customer All insurance business units scoring above market average NPS1 by 2023 experience Brand consideration2 23% 21% 21% 28% by 2023 Engaged Employee engagement
Slide 19: Operating capital generation by source
Operating capital generation by source OCG1 by source (EURm) 2H21 2H20 FY21 FY20 Investment return 688 654 1,335 1,223 Life – UFR drag -394 -557 -825 −978 Life – Risk margin release 196 225 400 440 Life – Experience variance -21 -42 -18 −5 Life – New business 59 39 138 92 Non-life underwriting 125 4
Slide 20: Solvency sensitivities
Solvency sensitivities Δ Solvency Δ OF Δ SCR ratio Sensitivities to shocks at 31 December 20211 (EURbn) (EURbn) (%-points) Interest rate: Parallel shock +50bps -0.6 -0.1 -4% Interest rate: Parallel shock -50bps +0.8 +0.2 +5% Interest rate: 10bps steepening between 20y–30y -0.6 +0.1 -8% Credit spread
Slide 21: Remittances from subsidiaries
Remittances from subsidiaries Remittances from subsidiaries (EURm) 2H21 1H21 FY21 FY20 FY19 Netherlands Life1 528 520 1,048 930 814 Netherlands Non-life1 38 85 123 62 85 Insurance Europe1,2 67 125 192 77 148 Japan Life 0 146 146 119 79 Asset Management 50 60 110 81 195 Banking1 125 13 138 1 107 Rein
Slide 22: 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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