NN Group NV (NNGPF) (Full Year 2025) Earnings Call Highlights: Strong Growth and Strategic …

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Fri, February 13, 2026 at 10:06 AM GMT+9 4 min read

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NNGPF

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**Solvency II Ratio:** 220%.

**New Business Value Growth:** 16% increase in Insurance Europe; 25% increase in Japan.

**Gross Written Premium:** 6% growth in Non-life, surpassing EUR4 billion.

**Operating Capital Generation (OCG):** EUR2.1 billion, exceeding the target of EUR1.9 billion.

**Free Cash Flow:** Slightly above EUR1.6 billion, with a growth rate of 7% per annum.

**Dividend Per Share:** Increased by 13% to EUR3.88 per share.

**Annual Share Buyback:** Increased by EUR50 million to EUR350 million.

**Cash Capital Position:** EUR1.8 billion, reduced to EUR1.6 billion after debt repayment.

**Netherlands Non-life Combined Ratio:** 92.9%, with P&C at 90.3%.

**Immediate Annuities Gross Inflow:** EUR0.8 billion, up from EUR0.5 billion in 2020.

**Future Ready Program AI Use Cases:** 236 AI use cases implemented.

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Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

NN Group NV (NNGPF) exceeded its 2025 targets with a strong Solvency II ratio of 220%, providing a solid foundation for future growth.

The company reported a significant increase in new business values for international segments and a 6% growth in Non-life gross written premiums, surpassing EUR4 billion for the first time.

NN Group NV (NNGPF) is enhancing shareholder returns by increasing its capital return commitments by EUR100 million, split between a EUR50 million increase in annual share buyback and a EUR50 million dividend increase.

The company is making substantial progress on its Future Ready Program, with 236 AI use cases implemented and 42% of sales coming from digital leads.

Strong performance in growth segments such as Insurance Europe and Japan, with significant increases in new business value and market share improvements.

Negative Points

The disability segment experienced deterioration due to elevated inflows, partially attributed to long COVID and mental health concerns, necessitating reserve strengthening and repricing.

The company faces challenges in the competitive retail motor market, which may lead to some market share loss despite prioritizing margin over volume.

There is a potential impact on the business from changes in the Greek bancassurance market, although NN Group NV (NNGPF) has taken this into account in its targets.

The company anticipates a modest decrease in Operating Capital Generation (OCG) for 2026 due to the likely absence of positive experience variances in Netherlands Life.

The market environment for inorganic growth remains challenging, with more buyers than sellers and limited cross-border transactions, impacting potential M&A opportunities.

 






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Q & A Highlights

Q: Could you explain the deterioration in the disability segment in the second half of 2025 and the measures being taken in 2026 to improve the combined ratio? A: David Knibbe, CEO, explained that the disability segment saw elevated inflows due to long COVID and increased mental health concerns. Measures taken include repricing, increased segmentation between sectors, and allowing most contracts to reprice annually instead of every three years. These actions are expected to stabilize the combined ratio and maintain the remittance pattern.

Q: Can you provide more detail on the change in non-available own funds methodology and its impact on the solvency ratio? A: Annemiek van Melick, CFO, stated that the change aligns NN Group’s approach with peers, resulting in a 4 to 5 percentage point increase in the solvency ratio. This adjustment does not affect local solvency ratios or remittance capacity but prevents group solvency leakage.

Q: How does the steeper yield curve impact the Operating Capital Generation (OCG) for Netherlands Life? A: Annemiek van Melick noted that while the steeper yield curve positively impacts OCG, the absence of positive experience variances means that OCG for 2026 is expected to be modestly below 2025 levels. However, there could be some upside due to market-driven factors.

Q: With the additional EUR500 million of available cash, what are NN Group’s preferences for inorganic growth? A: David Knibbe emphasized that NN Group is focused on delivering its 2028 targets and capital return commitments. While open to M&A opportunities that meet strict financial and strategic criteria, the company is content with its current organic growth trajectory.

Q: What is the impact of higher yields on new business lapses in Japan? A: Annemiek van Melick explained that higher yields are beneficial due to the embedded fixed guarantee rate in COLI products, which supports VNB and OCG in Japan. The solvency in Japan remains strong, and higher interest rates have not negatively impacted lapses.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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