NN Group N.V.

First-half 2026 operating capital generation was EUR 1.1 billion, up 5% year over year; free cash flow was EUR 922 million, up 7%; net result increased to EUR 1.1 billion; and the Group solvency ratio rose to 224%. Value of new business increased 16%, Insurance Europe VNB rose 14%, Non-life gross written premium grew 6%, Netherlands Life DC assets under management increased 13% to EUR 48 billion, and the interim dividend was EUR 1.55 per share, up 12%. Management said 1H OCG beat prior flat guidance, and for full-year 2026 it still expects OCG to be broadly flat, with some upside from Europe and Non-life; H2 is expected to be broadly in line with H1. Free cash flow for full-year 2026 is expected to be broadly in line with the EUR 1.6 billion reported in 2025, and management reiterated the 2028 target of more than EUR 1.8 billion in free cash flow, EUR 600 million OCG from Europe, and EUR 90 million of OCG from DC in 2028. The Future Ready program remains on track with EUR 450 million of investment and annual benefits building to EUR 200 million by 2027.

David Knibbe framed the half as another set of excellent results, emphasizing diversification into growth segments and tangible progress on Future Ready. He highlighted strong Europe momentum, continued growth in protection and pensions, and said the bank exclusion creates a better level playing field for capital reporting. His tone was confident but measured: he acknowledged headwinds in Japan, Greece and disability, while repeatedly saying NN remains very confident in hitting 2028 targets.

Annemiek van Melick focused on the financial bridge: OCG up 5% to EUR 1.1 billion, free cash flow up 7% to EUR 922 million, solvency at 224%, and cash capital at EUR 1.7 billion after the January redemption of the remaining grandfathered RT1 debt. She said operating capital generation added 13 percentage points to solvency, market variance reduced it by 5 points, and other items added 5 points, including the positive impact from excluding the bank from Solvency II partly offset by a pension transfer and model/assumption changes. She also said H1 free cash flow includes some one-offs versus 2025, but the group remains on track for more than EUR 1.8 billion by 2028 and typically builds EUR 300 million to EUR 400 million per year from free cash flow net of capital return.

Analysts focused on the implications of excluding NN Bank from solvency, the Japanese reinsurance deal, Japan CSM release and market share, DC margin conversion, Greece’s bancassurance exposure, disability claims, and M&A capacity. Management said the 200% solvency threshold remains the relevant framework, and the bank exclusion simply gives more buffer; on Japan, the reinsurance deal reduced lapse and interest-rate sensitivity, raised local equity by around EUR 240 million, and should support stable remittances growing in line with OCG. On DC, NN said inflows were a record and the business is on track for EUR 55 billion AUM and about EUR 90 million of OCG in 2028, while in Greece management said bancassurance sales will fall materially next year but tied agents and other countries such as Poland and Romania should help offset the decline.