Impact of Storm Claims Causes H1 Profit Slips for Dutch Insurer NN Group

The cost of storm-related claims has cut into the first-half profit of the Dutch insurance giant NN Group.

The Dutch insurer NN Group said on Thursday that its core earnings declined 12.1% year over year in the first half of 2022. It attributed the decline to weather-related events and the sale of its asset management division.

In the first half of the year, operating profit decreased from 1.12 billion euros to 983 million euros ($1.01 billion).
According to Alexander Evans from Credit Suisse in a flash letter to investors, the result exceeded analyst estimates by 2%.

According to the corporation, a severe storm that hit the Netherlands earlier this year had an impact of 86 million euros, mostly on the non-life category for the nation.

The operating result barely accounts for a fourth of the contribution from NN Investment Partners, the company’s former asset management division that was sold to Goldman Sachs in April for 1.7 billion euros.

In contrast to last year’s net result of 1.41 billion euros, the sale produced a larger net result of 2.06 billion euros.

According to NN, its operational capital creation increased to 899 million euros from 780 million euros the previous year and outperformed forecasts by nearly 17%.

According to Chief Executive Officer David Knibbe’s remark, the growth in capital creation was “primarily driven by the Dutch life sector as well as our overseas insurance operations.”

NN’s solvency under Europe’s Solvency II system dropped from 213% to 196%, among other important measures.

The organization also predicted that by 2030, at least 6 billion euros will be invested in climate solutions.

($1 = 0.9728 euros)

(Augustin Turpin and Valentine Baldassari contributed to the reporting; Christian Schmollinger and Sherry Jacob-Phillips edited it.)

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