Insurer NN Group hikes dividend, share buybacks on capital generation growth (updated)

NN

29/02/2024 06:27

(Adds more detail from 3rd paragraph, CEO quote in 6th
paragraph)
       AMSTERDAM, Feb 29 (Reuters) - Dutch insurer NN Group
 NN.AS  announced on Thursday a 15% hike in its annual dividend
and a structural increase of its share buyback programme to 300
million euros as its operating capital generation last year
exceeded the goal originally set for 2025.
    The Netherlands' largest insurer said capital generation
rose 13% to 1.9 billion euros ($2.06 billion), ahead of the 1.8
billion euros target for 2025. NN reported a net profit of 1.2
billion euros in 2023.
    Growth was driven by favourable business performances at the
Dutch non-life insurance division, while higher rates helped
insurance activities elsewhere in Europe and banking activities.
        These results helped offset a lower contribution from
Dutch life insurances driven by financial market developments. 
  
    The Hague-based NN Group raised its operating capital
generation target for 2025 to 1.9 billion euros, with an
expected free cash flow of 1.6 billion euros.
        "While business growth is expected to return to
normalised levels, we continue to expect underlying growth in
the coming years," CEO David Knibbe said.
  
        NN said risks to its balance sheet had decreased due to
a recent 360 million euros 
    settlement
     over investment-linked products and 
    longevity risk
     transactions for its pension business.
  
        The insurer's Solvency II ratio, the key metric for its
capital position, fell slightly to 197% at the end of last year,
from 201% six months earlier.
  
           

($1 = 0.9231 euros)

 (Reporting by Bart Meijer; Editing by Jacqueline Wong and Kim
Coghill)
 ((Bart.Meijer@thomsonreuters.com;))