Strong OCG and resilient commercial performance for second-half and full-year 2022
Solid business performance driving strong operating capital generation and attractive returns to shareholders
- Operating capital generation (OCG) increased to
EUR 812 million fromEUR 804 million in the second half of 2021 despite the sale of the Asset Management business (NN IP), reflecting a higher contribution from Netherlands Life and Insurance Europe; Full-year 2022 OCG up 8.0% toEUR 1,711 million - NN Group Solvency II ratio of 197% versus 196% at
30 June 2022 , reflecting strong OCG and asset and liability management transactions, partly offset by market impacts and deduction of the proposed 2022 final dividend - Proposed 2022 final dividend of
EUR 1.79 per ordinary share, bringing total 2022 dividend toEUR 2.79 per ordinary share, up 12% on 2021 - New share buyback programme for an amount of
EUR 250 million - Operating result of
EUR 760 million versusEUR 917 million in the second half of 2021, largely due to the sale of NN IP; Full-year 2022 operating result ofEUR 1,743 million compared withEUR 2,036 million in 2021 - Net result of
EUR -444 million versusEUR 1,864 million in the second half of 2021, reflecting negative real estate revaluations and impairments on equity securities, while the comparative period included gains on the sale of public equities and government bonds as well as positive real estate revaluations; Full-year 2022 net result ofEUR 1,562 million versusEUR 3,278 million in 2021
Resilient commercial performance
- Value of new business (VNB) of
EUR 177 million versusEUR 186 million in the second half of 2021, mainly reflecting lower VNB at Insurance Europe as a result of the negative impact of discounting at higher interest rates; Full-year 2022 VNB up 0.7% toEUR 431 million - Strong net inflowsof
EUR 2.0 billion inDefined Contribution pension businessin 2022 NN Bank and Woonnu originatedEUR 8.7 billion of new mortgages in 2022, maintaining a stable market share
Strong focus on customers, employees and society
- 8 of our 11 Dutch and International businesses score on or above market average Net Promoter Score (NPS-r)
- Employee engagement increased to 7.9 from 7.7 in
June 2022 - Percentage of women in senior positions increased to 40% from 39% in
June 2022 - Total investments of around
EUR 3 billion as part of targetEUR 6 billion additional investments in climate solutions - Climate Action Plan published, setting out a clear roadmap to reduce greenhouse gas emissions to net-zero
- 229,000 people reached via NN programmes to support their financial, physical and/or mental well-being
Statement of David Knibbe , CEO
'Despite the challenging economic and geopolitical environment, we see good progress on the execution of our strategy, and we are pleased to report a resilient commercial performance for the second-half and full-year 2022.
With the full-year operating capital generation of more than
At Netherlands Life, we attracted net inflows in the Defined Contribution pension business of
While we may see some short-term pressure on sales in
We continue to focus on executing our strategy, which is centered around customer engagement, our talented people, and our contribution to society. We measure customer satisfaction based on Net Promoter Scores (NPS). Based on the latest scores, 8 of our 11 business units scored an at or above market average NPS. We have the strong ambition to further improve the customer experience we offer and enhance our scores. Within NN Life, the pension intermediary satisfaction increased from 7.6 in 2021 to 7.8 in 2022, ranking first in the Dutch market.
Especially in today's competitive labour market, we are pleased with the high levels of engagement of our people, represented in an increased employee engagement score of 7.9. Our efforts in the area of reporting transparently on gender equality has again resulted in an inclusion in the Bloomberg Gender Equality Index. In 2022, for the first time, the number of women in senior management positions has increased to 40%.
In December, we published our first Climate Action Plan, which sets out a clear roadmap to reduce greenhouse gas emissions to net-zero in our own operations by 2040, as well as in our investments and insurance underwriting by 2050. Together with other insurers, we launched a target setting protocol to set science-based targets to transition our underwriting portfolios to net-zero. We are pleased to be included in the Dow Jones Sustainability Indices for the sixth year in a row.
In
(download the full Press Release)
Delivering on our strategic commitments
Our purpose statement reflects the kind of company we aspire to be: we help people care for what matters most to them. It's our ambition is to be an industry leader, known for our customer engagement, talented people, and contribution to society. To realise our ambition, we identified five strategic commitments, with all parts of our business contributing.
Customers and distribution - Improving the experience of our customers and intermediaries across our markets
In
NN Life Japan launched an Artificial Intelligence and Optical Character Recognition functionality to support its sales support system. This new functionality enables hardcopy documents, such as policy contracts and status reports, to be automatically read and converted into a digital format, enabling NN agents to centrally manage insurance policies of corporate customers and increase their efficiency.
Nationale-Nederlanden Poland launched a new digital platform for customers which provides an overview of their products, insurance coverages and investments. The platform enables them to manage their products themselves, supported by a clear layout and simple language.
In terms of customer satisfaction, 8 of our 11 combined International business units as well as our Dutch businesses scored above market average at the end of 2022. We are stepping up our efforts to effectively steer and steady our NPS-r scores towards achieving our 2025 target of International and Dutch business units scoring all above market average on NPS-r.
The focus of Nationale-Nederlanden on digitalisation and improvements in our services and communication towards intermediaries is reflected in increased intermediaries satisfaction scores in
Products and services - Supporting customer needs for protection and health
In the second half of 2022, we continued our efforts to meet the increased demand for long-term health and protection products. For example, Nationale-Nederlanden Spain partnered with
In view of recent changes in the Belgian pension system for the self-employed, NN Life Belgium launched a new pension solution for the fourth pension pillar of savings without tax benefits. This product meets the pension needs of the self-employed with investment funds and additional coverages and compensates for them losing part of the benefits from the second pillar professional pension.
In
Our Netherlands Life business continued to roll out the Human Capital Planner platform, which enables advisors and employers to have fact-based conversations with employees about their pension plans. NN's Zorggenoot service, which offers support in finding, arranging and financing informal care for elderly loved ones - a pressing issue for the 5 million informal caregivers in
As part of our ambition to support the transition to a sustainable society, our
People and organisation - New initiatives offering a diverse and inclusive workplace
We nurture a culture aimed at empowering our colleagues to be their best. We strengthened our efforts towards becoming a more diverse and inclusive (D&I) workplace. In
As part of our efforts to support a healthy work-life balance and flexible working conditions for our employees, NN Slovakia received an HR Inspiration award by the largest HR professional association in the country for introducing its four-day working scheme.
On the semi-annual survey carried out in the second half of 2022, NN colleagues' engagement increased to 7.9 (from 7.7 in the first half of the year). The results show colleagues feel empowered to choose how they carry out their work, they feel connected to NN's values and experience room for professional growth. Process efficiency continues to be an improvement area, and colleagues indicate to experience slow, but steady, improvement.
Financial strength - Maintaining a strong balance sheet
We aim to maintain a strong balance sheet and generate attractive financial returns for shareholders. Despite the ongoing turbulence in financial markets and uncertain macroeconomic environment, our operating capital generation was
In
Society - Initiatives supporting the financial, physical and mental well-being of people in our communities
In
BeFrank organised an awareness campaign encouraging young people to choose their investment risk though the company's Profile Determiner - a tool that helps people determine what risk suits them. The campaign included direct mailings, a website and social media presence and reached more than 2,400 young people.
Nationale-Nederlanden Poland partnered with the Rak'n'Roll Foundation for a social campaign aimed at encouraging illness prevention. As part of this initiative, Nationale-Nederlanden Poland established a 'Day for U' for its employees, giving them an additional day off to undertake prevention exams. NN Romania partnered with the 'Autism Voice' NGO for the launch of the
For the fourth consecutive year,
For the sixth consecutive year
(download the full Press Release)
Press call
Analyst and investor call
Analysts can participate in the Q&A by registering according to the following instructions:
- Register for the conference call online at link
- After registration, you will receive a confirmation e-mail containing the dial-in number and personal PIN code
- Use these details to dial in to the conference call
Financial calendar
- AGM:
2 June 2023 - Publication 1H23 results:
29 August 2023
Additional information on www.nn-group.com
NN Group 2H22 Financial Supplement,NN Group 2H22 Analyst Presentation,NN Group Company ProfileandNN Group ESG presentation- Photos of
NN Group executives, buildings and events are available in ourMedia library (nn-group.com)
Attachments
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