NN Group full year earnings beat market expectations (updated)
12/02/2026 06:34
FY operational capital generation at 2.1 billion euros Sees flat OCG in 2026, moderate premium hikes Buyback target upped to 350 million euros On path towards 2028 targets, Japan market position Shares up 3% Rewrites throughout, adds CEO and CFO comments in paragraphs 3, 5-7; By Mateusz Rabiega Feb 12 (Reuters) - Dutch-based insurer and asset manager NN Groupon Thursday reported 2025 earnings which beat market expectations and forecast a stable 2026, helping its shares rise around 3% to an all-time high. NN reported a 9% increase in its operating capital generation (OCG) to 2.09 billion euros ($2.48 billion), compared to 2 billion expected by analysts polled by the company, driven by a strong performance across all its businesses. In 2026, the group expects flat OCG, forecasting a "modest" slowdown from its life business as last year's outperformance is unlikely to be repeated, finance chief Annemiek van Melick said on analyst call. While the pricing environment in non-life remains supportive into 2026, NN sees premium hikes declining after last year's sharp increases. "We will probably see a mid-single digit... high single digit premium increase, (to keep up) with inflation of claim costs and other liability costs", Chief Executive Officer David Knibbe said. The insurer is not overly concerned over global market risks, with the sector being "less dependent on financial markets" and benefiting from strong client demand, he added. "Customers - even if things get difficult or financial markets move - they still want to be protecting their home. They still want to protect their car", Knibbe told Reuters. The group is on track towards 2.2 billion-euro target of operating capital generation by 2028, as it eyes growing key business in Europe, and Japan, where it wants to recapture a top three market position, after regulatory changes halved its sales. "The Japanese business is doing well... We still have some way to go... we're around number 5 now", said Knibbe. As the group's capital grew it lifted its share buyback target by 50 million euros to 350 million, and improved its dividend, raising its total payout per share by 13% to 3.88 euros. ($1 = 0.8431 euros) NN Group exceeds expectations https://www.reuters.com/graphics/NN%20GROUP-RESULTS/GRAPH/akvejbdklpr/chart.png NN's OCG set to slow down after years of growth https://www.reuters.com/graphics/NN%20GROUP-OCG/GRAPH/egvbbzkkqvq/chart.png (Reporting by Mateusz Rabiega; Editing by Matt Scuffham) ((mateusz.rabiega@thomsonreuters.com))