NN Group’s 2020 profit beats expectations

Big jump driven by investment gains and easing of the coronavirus pandemic

NN Group’s 2020 profit beats expectations

Insurance News

By Ryan Smith

NN Group NV, the largest Dutch insurance company, posted a 2020 operating profit of €1.89 billion (about SG$3.03 billion), exceeding expectations on the back of improved investment margins and the easing of the impact of COVID-19 in the second half of the year.

The company’s annual profit exceeded the €1.79 billion reported for 2019 and beat average analyst estimates of €1.7 billion, according to a Reuters report.

NN Group CEO David Knibbe said it was a “strong financial and commercial performance, even though it clearly was an unprecedented year.”

The company’s operating profit in the second half rose 9% year-over-year, and its largest division, life insurance in the Netherlands, benefited from higher-yielding assets, Reuters reported.

NN Group’s second-half operating profit in the life insurance division rose 26% to €500 million.

The company also benefited from higher investment gains and lower impairments in its full-year investment portfolio, Reuters reported. The portfolio netted out to €472 million, a spike from €241 million in 2019.

NN Group proposed a final dividend of €2.33 per share, up 7.9% from 2019, and announced a share buyback program of €250 million, according to Reuters.

Related Stories

Keep up with the latest news and events

Join our mailing list, it’s free!