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Investing.com -- NN Group ’s (AS:NN) net profit fell 39.6% to €391 million in the first half of 2025, as losses on government bond sales, derivative revaluations, restructuring costs and the disposal of Turkish operations outweighed stronger operating results, the financial services company reported on Friday.
Operating profit rose 8.6% to €1.44 billion from €1.33 billion a year earlier, driven by higher investment income in the Netherlands Life segment.
Operating capital generation (OCG) increased 6.4% to €1.02 billion from €959 million, supported by 14.7% growth in Netherlands Non-life, 9.5% growth in Insurance Europe and an 11.1% increase in Netherlands Life.
The Solvency II ratio rose to 208%, or 205% on a pro-forma basis, from 194% at the end of 2024, reflecting favourable market movements, strong capital generation and a longevity reinsurance agreement.
Free cash flow totaled €863 million, down 4% year-on-year, but the group said it is on track to meet its €1.6 billion full-year target.
Value of new business was €237 million, broadly unchanged from €241 million a year earlier.
Insurance Europe’s VNB rose 11% to €153 million, reflecting higher sales and a favourable product mix, while Japan Life’s VNB climbed 25% to €34 million after launching a long-term savings product in March. These gains were offset by lower defined benefit pension sales in the Netherlands.
Netherlands Non-life gross written premiums increased 6%, driven by premium hikes and volume growth.
The combined ratio improved to 91.2%, at the lower end of the 91% to 93% guidance range.
In the defined contribution pension business, assets under management remained stable at €39.2 billion, with €1.2 billion in net inflows offsetting market impacts.
Total (EPA:TTEF) assets stood at €206.1 billion at June 30, down from €210.4 billion at the end of 2024, mainly due to lower market values of investments.
Shareholders’ equity was stable at €19.7 billion. Investments in climate solutions increased to €14.3 billion from €12.8 billion.
NN Group declared an interim dividend of €1.38 per share, up 8% from last year, payable Aug. 20.
The €300 million share buyback program announced in February was 56% complete by Aug. 1, with €167 million in shares repurchased.
By segment, Netherlands Life’s operating result rose 23.6% to €829 million.
Netherlands Non-life’s operating result increased 12.5% to €231 million, Insurance Europe fell 7.3% to €277 million, Japan Life dropped 21.6% to €82 million, and Banking declined 25.7% to €76 million.