- Operating capital generation (OCG) increased to EUR 812 million from EUR 804 million in the second half of 2021 despite the sale of the Asset Management business (NN IP), reflecting a higher contribution from Netherlands Life and Insurance Europe; Full-year 2022 OCG up 8.0% to EUR 1,711 million
- NN Group Solvency II ratio of 197% versus 196% at 30 June 2022, reflecting strong OCG and asset and liability management transactions, partly offset by market impacts and deduction of the proposed 2022 final dividend
- Proposed 2022 final dividend of EUR 1.79 per ordinary share, bringing total 2022 dividend to EUR 2.79 per ordinary share, up 12% on 2021
- New share buyback programme for an amount of EUR 250 million
- Operating result of EUR 760 million versus EUR 917 million in the second half of 2021, largely due to the sale of NN IP; Full-year 2022 operating result of EUR 1,743 million compared with EUR 2,036 million in 2021
- Net result of EUR -444 million versus EUR 1,864 million in the second half of 2021, reflecting negative real estate revaluations and impairments on equity securities, while the comparative period included gains on the sale of public equities and government bonds as well as positive real estate revaluations; Full-year 2022 net result of EUR 1,562 million versus EUR 3,278 million in 2021
Resilient commercial performance
- Value of new business (VNB) of EUR 177 million versus EUR 186 million in the second half of 2021, mainly reflecting lower VNB at Insurance Europe as a result of the negative impact of discounting at higher interest rates; Full-year 2022 VNB up 0.7% to EUR 431 million
- Strong net inflows of EUR 2.0 billion in Defined Contribution pension business in 2022
- NN Bank and Woonnu originated EUR 8.7 billion of new mortgages in 2022, maintaining a stable market share
Strong focus on customers, employees and society
- 8 of our 11 Dutch and International businesses score on or above market average Net Promoter Score (NPS-r)
- Employee engagement increased to 7.9 from 7.7 in June 2022
- Percentage of women in senior positions increased to 40% from 39% in June 2022
- Total investments of around EUR 3 billion as part of target EUR 6 billion additional investments in climate solutions
- Climate Action Plan published, setting out a clear roadmap to reduce greenhouse gas emissions to net-zero
- 229,000 people reached via NN programmes to support their financial, physical and/or mental well-being
Statement of David Knibbe, CEO
‘Despite the challenging economic and geopolitical environment, we see good progress on the execution of our strategy, and we are pleased to report a resilient commercial performance for the second-half and full-year 2022.
With the full-year operating capital generation of more than EUR 1.7 billion, we have exceeded our 2023 target of EUR 1.5 billion. This result reflects the impact of higher interest rates and a strong business performance of Netherlands Life and Insurance Europe and was despite the sale of our asset management business NN IP. Our balance sheet remains strong, with a Solvency II ratio of 197% at year-end 2022, giving us ample financial flexibility and allowing us to continue to deliver solid capital returns to shareholders.
At Netherlands Life, we attracted net inflows in the Defined Contribution pension business of EUR 1.1 billion in the second half of the year. Netherlands Non-life reported a strong combined ratio of 95.4% reflecting improved D&A results partly offset by lower P&C results. And despite the slowing down of the Dutch housing market, NN Bank maintained its market share and originated in total EUR 3.8 billion of new mortgages during the second half of the year.
While we may see some short-term pressure on sales in Europe due higher prices and lower disposable incomes, we expect the structural demand for protection products to result in sales growth over time. In the second half of the year, the MetLife businesses that we acquired in Poland and Greece, delivered a positive contribution to the operating capital generation, sales, and value of new business of Insurance Europe.
We continue to focus on executing our strategy, which is centered around customer engagement, our talented people, and our contribution to society. We measure customer satisfaction based on Net Promoter Scores (NPS). Based on the latest scores, 8 of our 11 business units scored an at or above market average NPS. We have the strong ambition to further improve the customer experience we offer and enhance our scores. Within NN Life, the pension intermediary satisfaction increased from 7.6 in 2021 to 7.8 in 2022, ranking first in the Dutch market.
Especially in today’s competitive labour market, we are pleased with the high levels of engagement of our people, represented in an increased employee engagement score of 7.9. Our efforts in the area of reporting transparently on gender equality has again resulted in an inclusion in the Bloomberg Gender Equality Index. In 2022, for the first time, the number of women in senior management positions has increased to 40%.
In December, we published our first Climate Action Plan, which sets out a clear roadmap to reduce greenhouse gas emissions to net-zero in our own operations by 2040, as well as in our investments and insurance underwriting by 2050. Together with other insurers, we launched a target setting protocol to set science-based targets to transition our underwriting portfolios to net-zero. We are pleased to be included in the Dow Jones Sustainability Indices for the sixth year in a row.
In November 2022, we announced new strategic and financial targets for 2025, reaffirming our commitment to create long-term value for all our stakeholders. We aim to deliver EUR 1.8 billion of OCG by 2025 and a mid single-digit growth of OCG and free cash flow in the long term. We have announced today a proposed final dividend of EUR 1.79 per share, bringing the total dividend for 2022 to EUR 2.79 per share, an increase of 12% on 2021. In line with our capital return policy, we have also announced a new share buyback programme for an amount of EUR 250 million.’
