Insurer NN Group H1’s core profit slips as storm-related claims weigh

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Aug 11 (Reuters) – NN Group’s (NN.AS) core profit fell 12.1% year-on-year in the first half of 2022, the Dutch insurer said on Thursday, citing the impact of weather events and the sale of its asset management arm.

Operating profit was 983 million euros ($1.01 billion) in the first six months of the year, compared to 1.12 billion euros last year.

The figure beat analysts’ expectations by 2%, Credit Suisse’s Alexander Evans wrote in a flash note to clients.

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A massive storm in the Netherlands earlier this year resulted in an impact of 86 million euros, mostly in the country’s non-life segment, the company said.

Operating profit only includes a quarter of the contribution from NN’s former asset management business, NN Investment Partners, which was sold to Goldman Sachs for 1.7 billion euros in April. Read more

The sale led to a higher net profit of 2.06 billion euros, compared to 1.41 billion euros last year.

NN said its operating capital generation increased to 899 million euros from 780 million euros last year, and also exceeded expectations by around 17%, according to Credit Suisse.

The increase in capital generation was “primarily driven by the Dutch life business as well as our international insurance business,” chief executive David Knibbe said in a statement.

Among other key parameters, NN’s solvency under the European Solvency II regime increased from 213% to 196%.

The group also plans to invest at least €6 billion in climate solutions by 2030.

($1 = 0.9728 euros)

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Report by Valentine Baldassari and Augustin Turpin; Editing by Christian Schmollinger and Sherry Jacob-Phillips

Our standards: The Thomson Reuters Trust Principles.

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