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NN Group shares dip after insurer outlines 2025 targets

By Scott Kanowsky -- Amsterdam-listed shares in NN Group NV (AS:NN) fell on Thursday as investors considered a new strategy update from the Dutch insurance firm.

Operating capital generation (OCG) - a figure used to gauge free cash flow potential - is predicted to rise to €1.8 billion (€1 = $1.0335) in 2025 and €1.5B in 2023, with all segments of the business forecast to contribute to the higher target. In the long term, OCG growth is seen in the mid-single digits.

NN Group added that it now expects to reach its 2023 financial goals "ahead of plan." Its capital return policy, which calls for a progressive dividend per share and an annual share buyback worth at least €250M, was also left unchanged.

"Today, new challenges have arisen, such as geopolitical tensions, an energy crisis driving high inflation, and volatile financial markets," said chief executive officer David Knibbe in a statement. "Our strategy, which is aligned with long-term market trends, will help us to support our stakeholders in times of uncertainty."

Analysts at Citi, however, flagged that investors may be disappointed by the 2025 targets due to their "conservatism." In a note, the analysts said this muted outlook is most likely an attempt to allow for potential interest rate volatility.

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