In This Article:
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Operating Capital Generation: EUR1.9 billion for 2024.
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Free Cash Flow: Increased by 8% to EUR1.5 billion in 2024.
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Group Solvency Ratio: 194% at the end of 2024.
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Value of New Business: Increased by 20% year-over-year.
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Netherlands Life Net Inflow: EUR2.3 billion in defined contribution in 2024.
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Gross Written Premium for Netherlands Non-life: Increased by 4.5%.
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Full Year Dividend: EUR3.44 per share, an 8% increase year-on-year.
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Share Buyback: EUR300 million launched for the year.
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Insurance Europe Volume Growth: 10% in 2024.
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Insurance Europe Margin Growth: 16% in 2024.
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OCG for Netherlands Non-life: EUR406 million.
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Combined Ratio for P&C: 91.9%.
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Assets Under Management for DC: Grew from EUR25 billion in 2020 to EUR39 billion in 2024.
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Netherlands Non-life Gross Written Premium Growth: Approximately 4.5% compared to 2023.
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Cash Capital Position: Increased by EUR300 million to EUR1.3 billion.
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Insurance Europe OCG: EUR461 million, a 9% increase.
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Netherlands Life Remittances: Sustainable at current levels for over a decade.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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NN Group NV (NNGPF) reported strong operating capital generation for 2024, reaching EUR1.9 billion, aligning with their 2025 target.
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The company achieved an 8% year-over-year increase in free cash flow, amounting to EUR1.5 billion, indicating robust financial health.
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The group solvency ratio stands at 194%, which is at the upper end of their comfort range, showcasing a strong balance sheet.
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NN Group NV (NNGPF) announced a full-year dividend of EUR3.44 per share, marking an 8% increase from the previous year.
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The company has made significant progress in sustainability, reducing emissions in their corporate investment portfolio by 31% compared to 2021.
Negative Points
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Market and regulatory changes posed material headwinds throughout the year, although largely offset by management actions.
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The disability insurance segment showed a high combined ratio, particularly in the second half of the year, indicating potential areas for improvement.
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The Netherlands Life business experienced negative experience variances, impacting overall performance.
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Belgium required a capital injection and did not pay a dividend in 2024 due to strategic agreements and regulatory discussions.
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The ongoing business improvement order in Japan limits new sales, affecting the growth potential in that market.
Q & A Highlights
Q: Can you provide details on the derisking actions and their impact on Operating Capital Generation (OCG)? A: Annemiek Van Melick, CFO, explained that the derisking actions, including reinsurance transactions and strategic asset allocation (SAA) acceleration, resulted in a few tens of millions of adverse OCG effects, estimated to be below EUR50 million. These actions added 5 percentage points to the solvency ratio, enhancing the company's financial position.