NN Group 2021 operating capital generation €2.1bn

NN Group’s 2021 results show a step-change in capital generation, with operating capital generation rising to EUR 1,584 million from EUR 993 million a year earlier. The group also confirmed that this level already meets the EUR 1.5 billion operating capital generation target it had originally set for 2023.

Capital generation and target trajectory

For 2021, NN Group reported full-year operating capital generation of EUR 1,584 million, compared with EUR 993 million in 2020. Management stated that this brings total capital generation for the year to almost EUR 1.6 billion. The group said this outcome already meets the EUR 1.5 billion operating capital generation target it had set for 2023.

In the second half of the year, operating capital generation reached EUR 804 million, up from EUR 450 million in the second half of 2020. NN Group attributed the second-half increase to strong business performance and commercial momentum. The acceleration in the second half underpins the full-year step-up versus 2020.

NN Group’s 2023 operating capital generation target of EUR 1.5 billion remains in place despite the planned disposal of its asset management business. The group stated that, even after the sale of the asset management unit in the coming months, the 2023 target for operating capital generation remains unchanged.

Solvency II capital position

NN Group reported a Solvency II ratio of 213% at year-end, compared with 209% at 30 June. The end-year ratio sits alongside the higher operating capital generation and the confirmation of the 2023 target.

The combination of a 213% Solvency II ratio and operating capital generation of EUR 1,584 million frames the group’s capital resources and organic capital creation for the year.

Holding company cash and financial flexibility

At year-end, NN Group reported a cash capital position at the holding of EUR 1,998 million, up from EUR 1,533 million at 30 June. In parallel, NN Group also reported that holding company cash capital was EUR 2.0 billion at year-end 2021.

The holding company cash figure of EUR 2.0 billion sits alongside the group Solvency II ratio of 213% at year-end.

Strategic repositioning around asset management

NN Group stated that it plans to sell its asset management unit in the coming months following the 2021 results. The group noted that, even after the sale of the asset management unit, the 2023 target for operating capital generation remains unchanged. This means the EUR 1.5 billion operating capital generation ambition for 2023 is being maintained on a post-transaction basis.

NN Group has not specified further changes to its capital framework or new targets beyond the unchanged 2023 operating capital generation objective. The next key decision points will centre on completion of the asset management sale and subsequent updates on capital generation and solvency metrics.

--- Sources: https://www.nn-group.com/ https://www.nn-group.com/news/nn-group-reports-strong-commercial-and-financial-performance-for-second-half-and-full-year-2021/