NN Group sets $2.5 billion operating capital generation target for 2028 (updated)

NN

27/05/2025 06:38

Adds analyst comment in paragraph 3, CEO quotes in paragraphs 6-8

By Jakob Van Calster

May 27 (Reuters) - Dutch insurer and asset manager NN Group NN.AS expects its operating capital generation to grow to 2.2 billion euros ($2.5 billion) by 2028, it said ahead of its investor day on Tuesday.

It also aims to generate a free cash flow of more than 1.8 billion euros in 2028, compared with 1.5 billion euros last year.

"The strategy is largely more of the same, though OCG and FCF targets for FY28 are slightly more aggressive than what consensus was expecting," analysts at KBC Securities said in a note to clients.

NN Group said the growth would be mainly driven by higher contributions from its European business, Netherlands Non-life and Japan.

"Together with NN Bank, these businesses are expected to make up over 55% of Group OCG by 2028," CEO David Knibbe said in the press release.

The group hopes to soon recapture a top three market position in Japan, where its sales were cut roughly in half due to regulatory changes, Knibbe said during his Capital Markets Day presentation.

"We do expect that by 2028 we will be back at the VNB (value of new business) levels that we had in 2022," he added about the Japanese market.

Knibbe also said that NN Group needed to reach a Solvency II ratio of 200% before it could distribute excess capital to shareholders beyond its current plans, which include rising dividends and share buybacks of at least 300 million euros annually.

By the end of April, NN Group's pro-forma Solvency II ratio stood at 195%, slightly up from the forecast-beating 194% it had reported for the second half of 2024.

($1 = 0.8790 euros)

 (Reporting by Jakob Van Calster in Gdansk, editing by Milla Nissi-Prussak)

 ((Jakob.VanCalster@thomsonreuters.com))