NN Group reported a sharp drop in profit for the first half of 2025. Net profit fell almost 40% to €391 million. The decline came from losses on selling government bonds, changes in the value of derivatives, restructuring costs, and the sale of its business in Turkey. These negatives outweighed the growth in its main operations.
Operating profit, which measures the company’s core performance, actually rose by 8.6% to €1.44 billion from €1.33 billion last year. This was helped by higher investment income in the Netherlands Life insurance business.
The company’s ability to generate capital also improved. Operating capital generation rose 6.4% to €1.02 billion, boosted by strong results in Netherlands Non-life, Insurance Europe, and Netherlands Life.
Its financial strength, measured by the Solvency II ratio, went up to 208% from 194% at the end of 2024. This was supported by good market conditions, strong capital generation, and a reinsurance deal related to life expectancy.
Free cash flow fell 4% to €863 million, but the group said it is still on track to hit its full-year goal of €1.6 billion. The value of new business stayed almost flat at €237 million. Insurance Europe’s new business value rose 11% to €153 million thanks to higher sales and better products. Japan Life’s new business value jumped 25% to €34 million after launching a new savings plan in March. These gains were offset by lower pension sales in the Netherlands.
Netherlands Non-life premiums rose 6% because of price increases and more customers. The combined ratio, a key measure of insurance profitability, improved to 91.2%, the best end of its forecast range.
The pension business that invests defined contributions had assets of €39.2 billion, unchanged overall as new money coming in matched market losses. Total assets dropped to €206.1 billion from €210.4 billion at the end of 2024 because of lower investment values. Shareholders’ equity stayed steady at €19.7 billion. Investments in climate-related projects grew to €14.3 billion from €12.8 billion.
The company raised its interim dividend to €1.38 per share, an 8% increase, payable on August 20. It has also been buying back its own shares, with €167 million repurchased so far from a €300 million program announced in February.
By business unit, Netherlands Life’s operating result rose 23.6% to €829 million. Netherlands Non-life went up 12.5% to €231 million. Insurance Europe dropped 7.3% to €277 million. Japan Life fell 21.6% to €82 million. Banking slid 25.7% to €76 million.