NN Group Exceeds Estimates with Record H1 Earnings, Sets Dividend Payout

NN Group reported first half earnings that beat market expectations, driven by revenue growth at its European and domestic divisions. Net result declined by 40% due to higher costs, losses from government bond sales, and negative divestment outcomes. Solvency II ratio stands at 208%, exceeding the 200% threshold, and the insurer will pay an interim dividend of 1.38 euros per share.

NN Group, a Dutch insurer and asset manager, reported its first half-year (H1) earnings on July 2, 2025, which beat market expectations. The company's operating capital generation (OCG) for the period stood at €1.02 billion, representing a 6.7% increase over consensus estimates [4]. This performance was driven primarily by strong revenue growth in its European and domestic divisions.

The insurer's net result, however, declined by 40% compared to the previous period, primarily due to higher costs, losses from the sale of government bonds, and negative outcomes from divestments. Despite this, the company's operating result reached €1.44 billion, surpassing the consensus estimate of €1.3 billion.

NN Group's solvency ratio under Solvency II stood at 208%, exceeding the 200% threshold that the company had previously identified as necessary before considering returning excess capital to shareholders. The company's CEO, David Knibbe, stated that the insurer would evaluate the possibility of returning excess capital at the full-year results, with any return expected to be incremental and recurring [2].

The company also announced that it would pay an interim dividend of 1.38 euros per share [1]. Additionally, the insurer is focusing on addressing the impact of severe weather-related catastrophes, particularly flood and drought challenges within the Netherlands. NN Group estimates that the number of affected buildings could grow to 400,000 from the current 100,000 in the next decade, with an average repair cost estimated between €60,000 and €120,000 [2].

References:

[1] Reuters. (2025). NN Group earnings beat estimates boosted by strong European revenues. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3U00R6:0-nn-group-earnings-beat-estimates-boosted-by-strong-european-revenues/

[2] Reuters. (2025). NN Group considers further return of capital at end of year 2025. Retrieved from https://www.reuters.com/markets/europe/nn-group-consider-further-return-capital-end-year-2025-08-08/

[4] Investing.com. (2025). NN Group stock rises after beating consensus operating capital generation. Retrieved from https://www.investing.com/news/earnings/nn-group-stock-rises-after-beating-consensus-operating-capital-generation-93CH-4179025