NN Group stock rises after beating consensus operating capital generation

Published 08/08/2025, 09:50
NN Group stock rises after beating consensus operating capital generation

Investing.com -- NN Group (AS:NN) NV shares gained 2% on Thursday after the Dutch insurer reported first-half operating capital generation (OCG) that exceeded analyst expectations.

The company posted OCG of €1,020 million, 6.7% above consensus estimates, primarily driven by strong performance in its life insurance and banking segments. Group solvency ratio stood at 205% on a pro forma basis, 4 percentage points better than the 201% analysts had expected.

The OCG beat was mainly attributed to NN (NASDAQ:NNBR) Life and the banking division, while the non-life segment acted as a headwind. A longevity transaction covering €4 billion of NN’s book appeared to have contributed 3 percentage points to the solvency improvement.

Operating result reached €1.44 billion, surpassing the consensus estimate of €1.3 billion. However, the net result came in significantly lower at -€0.4 billion compared to the €0.9 billion consensus, reflecting several one-off factors including the sale of USD government bonds in Netherlands Life, adverse currency conversion from the sale of the Turkish business, and revaluation of hedges not under hedge accounting.

The insurer updated its full-year 2025 OCG guidance to more than €1.922 billion, slightly below the consensus estimate of €1.935 billion. The company expects second-half OCG to be lower than the first half, with decreased contributions from NN Life and banking operations, but higher results from the non-life segment.

Growth metrics showed positive momentum, with Insurance Europe growing value of new business by 11% YoY, while Japan saw 25% growth, including a 56% increase in the second quarter following the introduction of a long-term savings product.

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