NN Group’s revenue beats expectations
NN Group NV, the largest Dutch insurance company, posted an operating profit of EUR 1.89 billion (approx. USD 2.28 billion) in 2020, exceeding expectations due to improved investment margins and the mitigation of the impact of COVID-19 in the second half of the year.
The company’s annual profit was above the 2019 figure of 1.79 billion euros and, according to a Reuters report, exceeded the average analyst estimate of 1.7 billion euros.
David Knibbe, CEO of NN Group, said it was “a strong financial and commercial performance, although it was clearly an unprecedented year”.
The company’s operating income rose 9% year over year in the second half, and its largest business, life insurance in the Netherlands, benefited from higher-yielding assets, Reuters reported.
The NN Group’s operating profit in the second half of the year in the life insurance sector rose by 26% to € 500 million.
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The company also benefited from higher investment returns and lower depreciation in its full-year investment portfolio, Reuters reported. The portfolio was € 472 million, up from € 241 million in 2019.
The 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.