NN Group NV (NN.AS): 1H26 After the Call: Beginning To Deliver On 2028 Targets

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06 Aug 2026 08:20:40 ET │ 10 pages

NN Group NV (NN.AS)

1H26 After the Call: Beginning To Deliver On 2028 Targets

CITI'S TAKE

While the earnings call didn't offer much beyond today's earnings pack,

NN's management delivered a constructive message. They outlined NN’s

key tailwinds and commercial momentum and highlighted its robust

operational and capital performance, painting a positive short-term

outlook. Our summary is presented below.

1. 1-2Y Macro-environment/ 1-2Y Tailwinds: The new Dutch pension

framework will likely enable NN to maximize its NB value given its dominant

position in the domestic market. NN also anticipates fueled growth in its

pension business across Europe driven by strong financial markets. In

Japan, as highlighted by NN’s management, demand has shifted towards

shorter-term products due to new entrants. Nevertheless, NN has

positioned itself to regain market share (i.e. introduction of two new longterm policies) and if necessary to re-adapt its product offering (i.e. new

short-term policies). We believe the current market environment presents

an opportunity for it to gain additional market share at attractive margins.

Finally, inflation is boosting top-line growth for its NL Non-life business.

Neutral

Price (05 Aug 26 16:30)

Target price

Expected share price return

Expected dividend yield

Expected total return

Market Cap

Alejandra ChavezAC

2. 2026E Margins / Operating performance: With (i) NL Life displaying

disciplined pricing on its DC platforms (i.e. achieving an expected OCG

margin of 15-20 basis points), (ii) NL Non-life achieving a COR of 90.5%

(despite adverse weather events), and (iii) Europe’s new business value

increasing by 14% half-on-half from higher sales and margins, margins

appear secure for the immediate outlook. This (in our view) could

potentially lead to some 2026E consensus bottom-line upside. Lastly,

2026-27E bottom-line would also be helped by the benefit of its “Future

ready program” which is on track to deliver €200MM cost savings by 2027.

3. Guidance: Management remained confident about delivering its 2028

targets while maintaining the provided guidance. However, it appears a bit

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