Caring for what
matters most
NN Group N.V.
Annual Report 2023
1 About NN
About this report 1
NN at a glance 2
How we create value 4
A conversation with our CEO 6
2 Our operating environment
The world around us 9
Determining our material matters 11
Connectivity matrix 13
Definitions material topics 14
Stakeholder engagement and international commitments 16
3 Our strategy and performance
Our strategy 20
Progress on our commitments 21
Our performance 26
4 Creating value for our stakeholders
Our values 32
Adding value for our customers 34
Empowering our people to be their best 37
Creating value for investors and beyond 41
Creating a positive impact on society 44
Our Code of Conduct and other policies 60
5 Managing our risks
Managing our risks 64
Sustainability and climate change risk management 73
6 Corporate governance
A conversation with our Supervisory Board chair 80
Our Management Board 82
Our Supervisory Board 84
Report of the Supervisory Board 86
Corporate governance 95
Remuneration at a glance 111
Remuneration Report 112
Conformity statement 125
7 Facts and figures
Key strategic and financial indicators 127
Carbon footprint proprietary assets 133
EU Taxonomy disclosures 140
Assurance report of the independent auditors 164
8 Annual accounts
Consolidated balance sheet 170
Consolidated profit and loss account 171
Consolidated statement of comprehensive income 173
Consolidated statement of cash flows 174
Consolidated statement of changes in equity 176
Notes to the Consolidated annual accounts 178
Risk management (Note 50) 291
Capital and liquidity management (Note 51) 317
Authorisation of the Consolidated annual accounts 333
Parent company balance sheet 334
Parent company profit and loss account 335
Parent company statement of changes in equity 336
Notes to the Parent company annual accounts 338
Authorisation of the Parent company annual accounts 344
Independent auditor’s report 345
Appropriation of result 362
9 Other information
Our response to the Task Force on Climate-related
Financial Disclosures (TCFD) 364
Glossary 365
Contact and legal information 373
Contents
NN Group N.V.
2023 Annual Report
2 Our operating
environment
3 Our strategy and
performance
6 Corporate
governance
5 Managing
our risks
4 Creating value for
our stakeholders
7 Facts and
figures
1 About
NN
8 Annual
accounts
9 Other
information
NN Group N.V.
2023 Annual Report
3 Our strategy and
performance
1 About NN
Other reports
We aim to tailor our reporting for different stakeholders
by publishing additional reports on specific topics on the
NN Group website in the Investors/Annual Report section.
In 2023, NN Group published its first Active Ownership report
and the Climate Action Plan 2023 Update. Alongside this
Annual Report, NN Group publishes a Solvency and Financial
Condition Report, a Total Tax Contribution Report and reports
our community investment contributions in line with the B4SI
standards in the NN Community Investment: Overview 2023.
The GRI Index table shows the indicators NN Group reports
against, and where this information is in this Annual Report
and/or the NN Group website. The index table is published
alongside the Progress reports for the UN Principles for
Sustainable Insurance and the UN Global Compact.
Scope of the data in this report
This report covers NN and its subsidiaries. All quantitative
and qualitative information relates to NN as a whole, unless
a specific business unit is explicitly mentioned. The list of
principal subsidiaries is in Note 32 of the annual accounts.
The consolidated annual report is presented in euros (EUR),
the functional currency of NN Group. All amounts quoted in the
Annual Report are in euros and rounded to the nearest million,
unless otherwise indicated. Calculations are made using
unrounded figures. As a result, rounding differences can occur.
The consolidation scope of the reported data is aligned with
the consolidation scope of the annual accounts. This applies to
all material items, unless otherwise stated. The consolidation
scope of our non-financial information is included alongside
the numbers in our facts and figures chapter. The information
is sourced from both inside (primary data) and outside
(secondary data) the organisation. There is an inherent level of
uncertainty and estimation in our calculations. The definitions
and calculation methods of indicators are shared in the relevant
chapters, including the glossary.
External assurance
The consolidated annual accounts and the parent company
annual accounts of NN Group are audited by KPMG N.V. (KPMG).
Read more in the independent auditor’s report on page 345.
KPMG also provided limited assurance on the non-financial
information included in this Annual Report. The scope of
KPMG’s review is About NN, Our operating environment, Our
strategy and performance, Creating value for our stakeholders,
Managing our risks, Facts and figures (with the exclusion of
the section EU Taxonomy Disclosures) and other information.
The assurance engagement is described in its assurance
report on page 164. KPMG issued a limited assurance report
on NN Group's Total Tax Contribution Report. Read more in the
Assurance report of the independent auditor on pages 31–33 of
the Total Tax Contribution Report.
The Integrated Annual Report 2023 of NN Group N.V.
(NN) provides an overview of NN’s strategic and financial
performance over the past year in a way that is concise,
accurate and balanced. This report is intended to inform our
stakeholder groups: customers, shareholders, employees,
business partners, regulators and society at large. We aim to
show how we create sustainable long-term value.
Purpose
This report brings together relevant information about our
strategy, governance and performance in a way that reflects
the current economic, environmental and social contexts.
We share information about our company, our strategy and our
business performance, including our value creation model and
double materiality assessment in the sections About NN, Our
operating environment, and Our strategy and performance.
We show how we create sustainable long-term value and our
approach to combating climate change in the sections Creating
value for our stakeholders and Managing our risks. Our financial
statements are included in the section Annual Accounts.
This report is published on 21 March 2024 and covers the year
from 1 January to 31 December 2023.
Relevant topics and materiality
We take into account the sustainability matters (refer to page
14 and 15 for the definition) that have a material impact on our
stakeholders and that are financially material on our business.
Our material sustainability matters were selected as part of our
double materiality assessment process to advance our reporting
in the Annual Report 2023 and help us prepare for Corporate
Sustainability Reporting Directive (CSRD) implementation for
2024. Our double materiality assessment uses internal and
external input, including a survey with internal and external
stakeholders and several expert sessions. Read more on page 11.
Preparation
This Integrated Annual Report is prepared in accordance
with applicable Dutch law and the International Financial
Reporting Standards as endorsed by the European Union
(IFRS-EU). The non-financial information and data is prepared in
accordance with relevant non-financial disclosure regulations,
such as Non-financial Reporting Directive NFRD and EU
Taxonomy, and the Global Reporting Initiative (GRI). Refer to
the GRI index table on the NN Group website. Since 2017, NN
Group has externally disclosed that it is aligning its climate action
approach to the Task Force on Climate-related Financial Disclosures
(TCFD). Our approach to addressing net-zero is described on
page 49, and included in a TCFD reference table on page 364.
We aim to strengthen our integrated way of reporting every
year and are preparing for the implementation of the CSRD for
2024. This report contains various elements from the Value
Reporting Foundation framework and the CSRD.
About this report
1
NN Group N.V.
2023 Annual Report
2 Our operating
environment
3 Our strategy and
performance
6 Corporate
governance
5 Managing
our risks
4 Creating value for
our stakeholders
7 Facts and
figures
1 About
NN
8 Annual
accounts
9 Other
information