Insurer NN Group hikes dividend, share buybacks on capital generation growth
Adds more detail from 3rd paragraph, CEO quote in 6th paragraph
AMSTERDAM, Feb 29 (Reuters) -Dutch insurer NN Group NN.AS announced on Thursday a 15% hike in its annualdividend and a structural increase of its share buyback programme to 300 million euros as its operating capital generation last year exceeded the goal originally set for 2025.
The Netherlands' largest insurer said capital generation rose 13% to 1.9 billion euros ($2.06 billion), ahead of the 1.8 billion euros target for 2025. NN reported a net profit of 1.2 billion euros in 2023.
Growth was driven by favourable business performances at the Dutch non-life insurance division, while higher rates helped insurance activities elsewhere in Europe and banking activities.
These results helped offset a lower contribution from Dutch life insurances driven by financial market developments.
The Hague-based NN Group raised its operating capital generation target for 2025 to 1.9 billion euros, with an expected free cash flow of 1.6 billion euros.
"While business growth is expected to return to normalised levels, we continue to expect underlying growth in the coming years," CEO David Knibbe said.
NN said risks to its balance sheet had decreased due to a recent 360 million euros settlement over investment-linked products and longevity risk transactions for its pension business.
The insurer's Solvency II ratio, the key metric for its capital position, fell slightly to 197% at the end of last year, from 201% six months earlier.
($1 = 0.9231 euros)
Reporting by Bart Meijer; Editing by Jacqueline Wong and Kim Coghill
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