The operating result of the well-known group of Nationale-Nederlanden increased from 926 million euros in the first half of 2020 to 1.119 billion euros in the past six months. “Big improvement. “Almost all parts have performed better,” CEO David Kneby said Thursday morning, explaining the half-year numbers.
In response, NN’s stock price rose 3.8%.
The net income of the Amsterdam-listed group was €1,414 billion, compared to €587 million in the first six months of 2020. Here, the sale helped generate gains in stocks and government bonds.
Market analysts who follow the fund have forecast an average operating result from continuing operations of €966 million.
It has lost about 70 million euros in damages from recent floods in recent weeks, according to NN, and is inactive outside of hard-hit Germany.
In addition, benefits, for example, to healthcare workers remain above average due to the “increased number of burnouts” due to extreme stresses during the Corona pandemic.
Its production almost doubled. “The pandemic has made it clear that people are underinsured in some areas, with direct consequences for income, unemployment and health,” Kneby said. “The weather is getting harsher. This increased awareness of risks and vulnerabilities is leading to increased demand for products that offer protection, particularly in countries outside the Netherlands, where people are well secured on average.”
People traveled less because of the pandemic, the money they spent more on policies. But we also see that people, and this is a long-term trend, are more concerned that they are not sufficiently insured, for example because the government is no longer doing so. “People are starting to take measures for that,” the CEO said. “This is expected to continue for a long time.”
According to this calculation, the solvency of the insurance company founded in 1963 should drop from 221% to 212%. However, this is 209%, compared to 210% at the end of last year. This is partly due to the inflow of capital to shareholders, according to Kneby.
On the other hand, the insurance company lost less money with its non-life policies. More people are staying at home due to Corona, which has led to fewer burglaries and fires.
Increase in dividends
Analysts calculated the dividend of €0.93 per share exactly as the company announced Thursday morning, putting together €287 million. That was 0.86 euros per share a year ago.
According to David Knibbe, due to the Corona pandemic, more and more people are taking out insurance, and the fragility of life is becoming more and more apparent.
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The figures predict that the chairman of the board, who has been active since the end of 2019, will pay more dividends to the holding company. This position was strengthened by 1.53 billion euros.
The NN group includes NN insurer, asset manager NN Investment Partners and Nationale-Nederlanden Bank. The latter benefited up to 4.4 billion euros from the recovery of the mortgage market.
The NNIP asset manager has received nearly an additional €4 billion. “Six months are very strong,” the CEO said, explaining these activities.
NN Group offers 780 million euros in working capital. Analysts expected it to generate about $663 million, which is already a 16% increase in their accounts over the previous year.
NNIP . Sale
The insurer remained silent today on the sale of NNIP, the asset manager within the NN Group. In April, it announced that it would put this item up for sale with a management estimated at around 300 billion euros. According to market rumors, several providers have come up with proposals for this.
NN Group operates in 19 countries, mainly in Europe but also in Japan, where sales have doubled. Since Capital Markets Day last year, the board of directors has called for more sustainable investments. By 2023, 80% of all policy funds under management should be allocated to this type of investment. This percentage is now 75%. She invests a third of her assets under management to other asset managers and pension funds.
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