Slide 1: NN Group 1H24 results
NN Group 1H24 results Strong delivery towards 2025 targets 15 August 2024
Slide 2: Strong delivery towards 2025 targets
Strong delivery towards 2025 targets David Knibbe, CEO
Slide 3: Today's key takeaways
Today’s key takeaways Delivering towards our EUR 1.9bn 2025 OCG target with EUR 959m operating capital generation in 1H24 Robust capital position: Solvency II ratio at 192%, top-end of 150-200% comfort range 1 higher and EUR 1.2bn net inflows in DC Continued business and commercial performance: VNB
Slide 4: Continuing our attractive capital return trajectory
Continuing our attractive capital return trajectory Accumulated payout to shareholders1,2 14% increase of interim dps1 3.20 3.20 2.79 2.79 2.16 2.33 2.49 2.49 1.90 10.0 bn 1.51 1.55 1.66 2.08 1.79 3.5 bn 1.56 0.57 6.6 bn 1.28 0.93 1.00 1.12 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E 202
Slide 5: Executing on unit-linked settlement
Executing on unit-linked settlement • In January 2024, NN reached a settlement with all interest groups involved in legal proceedings against NN with respect to unit-linked products • On track to complete the settlement before June 2025 • A EUR ~360m provision was already recognised in 2023 to cover
Slide 6: On track to achieve strategic targets
On track to achieve strategic targets Above market average Net Promoter Employee engagement of ≥ 8.0 by 2025 Diversity: Women in senior management Score (NPS-r) of Netherlands and positions of ≥ 40% by 2025 International by 2025 7.9 7.8 7.8 40% 40% 39% Netherlands: on par International: above 2022 2
Slide 7: 2025 targets realistic due to sustained delivery in home markets...
2025 targets realistic due to sustained delivery in home markets... Netherlands Life delivering stable remittances Netherlands Non-life to deliver growth and sustain Bank on track to outperform on 2025 OCG target improved cash conversion • Catch-up on growth targeted in 2H24 • OCG delivery and stron
Slide 8: ...and continued sales momentum in Europe
...and continued sales momentum in Europe Leading in underpenetrated CEE …supporting higher sales and a …supporting OCG growth towards markets and Greece1… more profitable business mix… 2025 target and beyond Greece #1 Life 29% 422 388 +15% +21% #1 Life 27% 318 #1 P2 34% 253 229 Romania 451 137 #1 P
Slide 9: Delivering on enhanced investor proposition
Delivering on enhanced investor proposition Strong business Resilient balance sheet Attractive capital return performance Group SII ratio Delivering on financial targets 2025 Dividend per share 192% (30 Jun 2024) EUR 1.28 (1H24 interim dividend) Operating Capital Generation Higher capital quality EU
Slide 10: 1H24 results
1H24 results Annemiek van Melick, CFO
Slide 11: Strong delivery towards financial targets in 1H24
Strong delivery towards financial targets in 1H24 Operating capital generation Free cashflow Delivering towards the 2025 OCG and FCF targets... EUR 959m EUR 899m 1H23: EUR 997m 1H23: EUR 832m1 Solvency II ratio Cash capital at Holding …while maintaining a solid balance sheet and cash position… 192%
Slide 12: Delivery on OCG remains strong
Delivery on OCG remains strong OCG1 by segment (EURm) 1H24 1H23 Delta 1H24 OCG down 4% vs an exceptionally high 1H23 Netherlands Life 536 523 2% • Increased OCG at Netherlands Life, reflecting higher mortgage spreads. Netherlands Non-life 153 210 -27% • OCG levels at the Bank remain high, benefittin
Slide 13: Lower operating result mainly driven by Netherlands Life and Netherlands Non-life
Lower operating result mainly driven by Netherlands Life and Netherlands Non-life Operating result (EURm) 1H24 1H23 • Netherlands Life: lower technical margin and operating investment results due to lower interest rates and refinements Netherlands Life 670 810 • Netherlands Non-life: less favourable
Slide 14: Robust capital, towards top end of comfort zone
Robust capital, towards top end of comfort zone Solvency II ratio 11% 1% • 1H24 operating capital generation of EUR 959m adds 197% 199% 192% 11%-points to the solvency ratio -9% -7% • Market impact slightly positive with tighter mortgage spreads and higher rates more than offsetting the 0.9 0.0 18.0
Slide 15: Real estate appreciated in value due to residential
Real estate appreciated in value due to residential Dutch house prices increasing again Real estate valuation supported by increasing residential prices • Prices of existing houses in the Netherlands have increased again in NN Group’s real estate valuation changes the first half of 2024, following a
Slide 16: 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) Remittances from subsidiaries (EURm) 1H24 1H23 FY23 FY22 Free Cash Flow: EUR 899m1 -8 Netherlands Life2 529 529 1,059 1,1715 -128 -505 Netherlands Non-life2 164 106 335 176 1,036 1,359 -6 Insurance E
Slide 17: Wrap up
Wrap up
Slide 18: Today's key takeaways
Today’s key takeaways Delivering towards our EUR 1.9bn 2025 OCG target with EUR 959m operating capital generation in 1H24 Robust capital position: Solvency II ratio at 192%, top-end of 150-200% comfort range Continued business and commercial performance: VNB 23% higher and EUR 1.2bn net inflows in D
Slide 19: Appendices
Appendices @»s
Slide 20: On track to achieve improved 2025 OCG target of EUR 1.9bn
On track to achieve improved 2025 OCG target of EUR 1.9bn OCG1 upside for Netherlands Non-life and Banking at FY23 ...H1 24 supports delivery on 2025 NN Group target reason to upgrade OCG target from EUR 1.8bn to EUR 1.9bn… (in EURm) 1,902 1,900 2023 2025 Outlook 1,584 1,711 realised target 812 904
Slide 21: Solvency sensitivities
Solvency sensitivities Solvency ratio sensitivities to market shocks on 30 June 20241,2 Δ EOF Δ SCR Δ SII ratio (EURbn) (EURbn) (%-points) Interest rate: Parallel shock +50bps -0.3 -0.2 +2% Interest rate: Parallel shock -50bps +0.3 +0.2 -2% Interest rate: 10bps steepening between 20y–30y -0.1 +0.0 -
Slide 22: Operating capital generation by source
Operating capital generation by source OCG1 by source (EURm) 1H24 1H23 Investment return 670 620 Life – UFR drag -79 -105 Life – Risk margin release 114 126 Life – Experience variance -12 27 Life – New business 114 108 Non-life underwriting 93 164 Own Funds generation – SII entities 901 941 Non-Solv
Slide 23: Strong balance sheet and financial flexibility
Strong balance sheet and financial flexibility Eligible Own Funds and SII headroom (30 June 2024, EURbn) Headroom RT1/T2 Credit ratings RT1 headroom T2 headroom 17.4 Financial 30 Jun 31 Dec EUR 0.8bn EUR 0.5bn 1.1 2.0 Strength Rating 2024 2023 10.2 2.3 1.8 A+ A+ Standard & Poor's Stable Stable AA- A
Slide 24: High-quality investment portfolio
High-quality investment portfolio Investment portfolio (NN Group excluding banking)1 • High-quality and conservative investment portfolio (30 June 2024) • Diversified real estate exposure across segments and regions 4% Fixed income • Core profile and strong occupancy rate ~96% 4% 3% Real estate • Ab
Slide 25: Investment portfolio
Investment portfolio Investment portfolio (NN 30 June 31 Dec % of Total investment exposure decreased mainly due to a Change Group excl banking)1 (EURbn) 2024 2023 total decrease in the fixed income portfolio Fixed income (excl. mortgages2) 70.2 73.8 -3.6 52% • Decrease in fixed income portfolio was
Slide 26: Details of fixed income portfolio
Details of fixed income portfolio 30 June 31 Dec % of • Core of fixed income portfolio consists of AAA-A rated Fixed income1 (EURm) 2024 2023 Change total government bonds Government2 37.0 39.8 -2.8 28% • The decrease in the value of the fixed income portfolio was Corporates2 22.4 23.3 -0.9 16% main
Slide 27: 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, 30 June 2024) (30 June 2024 upper line versus 31 Dec 2023) across segments, geographies and investment types2
Slide 28: Well-collateralised Dutch mortgage portfolio
Well-collateralised Dutch mortgage portfolio % of • Very comfortable average loan to • NN Group mortgage portfolio Mortgages1 (EURbn) Jun-24 Dec-23 total value of 561%, with the vast majority experienced very limited losses NHG and other guaranteed2 8.3 9.6 22% reflecting LTV <80% <10bps during and
Slide 29: 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 (16% of investment portfolio, at 30 June 2024) (4% of investment portfolio, at 30 June 2024) 4% AAA Public equity 14% 8% AA Private equity 37% EUR EUR A Equity in mutual funds1 2
Slide 30: 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 372 88 64 167 53 0 Underlying return on in-force 63 -17 4 75 1
Slide 31: 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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