27
May
2025
|
06:55
Europe/Amsterdam

NN Group Capital Markets Day: Future ready growth

Today, NN Group is hosting a Capital Markets Day in The Hague to address the analyst and investor community. During this event, CEO David Knibbe and CFO Annemiek van Melick, and other members of the company’s management, will give an update on the next phase of NN Group’s strategy.

New ambitious financial targets for 2028

  • Operating capital generation (OCG) target of EUR 2.2 billion in 2028, versus the EUR 1.9 billion target for 2025
  • Free cash flow (FCF) target of above EUR 1.8 billion in 2028, versus the EUR 1.6 billion target for 2025
  • New OCG and FCF targets represent a Compound Annual Growth Rate (CAGR) per share of 7-8%, driven by Insurance Europe, Netherlands Non-life and Japan

Continuing roadmap for society at large

  • Above market average customer satisfaction and top 3 broker satisfaction in the Netherlands by 2028
  • Above market average employee satisfaction and ≥40% women in senior management by 2028
  • EUR 13 billion investments in climate solutions and 45% reduction of GHG emissions of corporate investments by 2030
  • Supporting well-being of 2.5 million people by 2028

Accelerating digital transformation

  • Future Ready programme to support IT simplification, digital and frictionless customer journeys, and profitable growth
  • Investment of EUR ~450 million for 2024-2027 period; annual benefits gradually building up to EUR ~200 million by 2027
  • New business transformation targets, including goal to achieve 300 data & AI use cases by 2028

Strong capital position and continuing attractive capital returns

  • Resilient balance sheet and strong capital position; pro-forma Group Solvency II ratio stable at 195%1 by end-April 2025
  • Committed to capital return policy; progressive dividend per share and annual share buyback of at least EUR 300 million

Statement of David Knibbe, CEO

‘Today, we are announcing ambitious new plans for the future, building on our proven track record of consistent strategy execution and business growth. We expect to achieve operating capital generation (OCG) of EUR 2.2 billion by 2028, from EUR 1.9 billion targeted in 2025. We also set a new free cash flow target (FCF) of above EUR 1.8 billion by 2028, up from EUR 1.6 billion for 2025. The new OCG and FCF targets represent a Compound Annual Growth Rate (CAGR) per share of 7-8% versus the 2025 targets. 

The growth will be driven by increased contributions from our European businesses, Netherlands Non-life and Japan. In our European businesses, where we have leading positions in the protection and pension markets, we see continued strong growth due to high customer demand, our unique distribution network, and GDP growth above the EU average. For Netherlands Non-Life we expect growth to continue, while we expect our Japanese business to show a gradual recovery positively impacted by growth of the long-term savings market for SMEs. Together with NN Bank, these businesses are expected to make up over 55% of Group OCG by 2028, further enhancing our business diversification and improving our future growth prospects. Supported by strong new business and renewals in the past few years, as well as higher interest rates, we expect a slower paced run-off of our Dutch Life & Pension books whilst our number one position in the Defined Contribution pension market will enable us to grow our fee income. 

Our strategy remains focused on customers, colleagues and society. We are committed to achieving customer and employee satisfaction scores that beat the competition, and we are introducing a new target to enhance broker satisfaction in the Netherlands. Our commitment to society remains unchanged, as reflected by our continued focus to reduce greenhouse gas emissions and contribute to the well-being of our communities. To support our strategic ambitions in a rapidly evolving market, we have launched the Future Ready programme. This initiative carries an investment of around EUR 450 million until 2027, of which a large part was already absorbed in capital in 2024. It aims to accelerate our digital transformation by simplifying our IT infrastructure and by expanding the use of artificial intelligence. By doing so, we will further improve customer experiences, drive growth, and gradually build up around EUR 200 million in annual benefits by 2027. 

With our talented colleagues, our robust business model, and resilient balance sheet, we are confident we will deliver on our 2028 targets, enabling us to continue to create sustainable long-term value for our stakeholders.’  

The Capital Markets Day is scheduled to begin at 09:00 CET. The morning session will be available for viewing through a live webcast on the NN Group website, while the afternoon session will include interactive break-out sessions that require physical attendance. The presentations are also available for download from the NN Group website. 
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1 As per 1 January 2026, EUR 237 million of grandfathered Tier 1 capital will no longer qualify for Solvency II purposes, which is reflected in our pro-forma Solvency II ratio at the end of April 2025